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Showing posts with label big data. Show all posts
Showing posts with label big data. Show all posts

Tuesday, April 2, 2013

Big Data Will Not Solve All Our Problems, May Mislead Us

Posted on 8:47 AM by Unknown
Microsoft Research's Kate Crawford has a terrific blog for HBR about big data.  In the post, she discusses the hype regarding big data, and she talks about the hidden biases that we must be aware of when analyzing large data sets:

Data and data sets are not objective; they are creations of human design. We give numbers their voice, draw inferences from them, and define their meaning through our interpretations. Hidden biases in both the collection and analysis stages present considerable risks, and are as important to the big-data equation as the numbers themselves. 

Crawford has some terrific examples of biases in data sets.  For instance, she talks about how the Twitter data after Hurricane Sandy offers a distorted view of the storm.  Why?  As the storm progressed, people in the hardest hit areas ran out of battery power on their cellphones.  Thus, they stopped tweeting.  Folks in Manhattan, where the storm was significant, but not as devastating, engaged in much more Twitter activity.  Moreover, people in the lowest income groups are not as well represented on Twitter, because many do not own smartphones.  As she writes, "We can think of this as a "signal problem": Data are assumed to accurately reflect the social world, but there are significant gaps, with little or no signal coming from particular communities."

The lesson is clear.  Begin your big data project by asking:  How was the data collected?  What populations are overrepresented?  What populations are underrepresented?  Beyond that, you should ask:  Who collected and assembled the data set?  Do they have an agenda?  Are they biased in any way?  Often, the biggest bias in big data has nothing to do with access to technology or underrepresented populations.  Instead, the most significant bias lies inside the mind of the person assembling the data.  Their agenda clouds the process of data collection. 
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Posted in analytics, big data | No comments

Friday, January 11, 2013

Disney MagicBands: This Could be Magical... and Expensive!

Posted on 11:53 AM by Unknown
Source: Fast Company
Disney has used RFID technology to develop MagicBands - a wristband that serve as a guest's theme park ticket, hotel key, and payment system throughout DisneyWorld.   When I read about this project at Fast Company's website, I thought to myself... "These MagicBands could be REALLY expensive for parents."  It's going to make spending money that much easier.  I speak from firsthand experience.  We just stayed at DisneyWorld's Contemporary Resort a few weeks ago.   The cards you receive upon check-in serve as hotel room keys and park tickets, and they can be used to pay for food and gifts throughout the parks.  I found myself a bit less hesitant about spending money with that card in hand, as opposed to having to pull cash out each time we bought something.  However, as Fast Company writer Mark Wilson points out, these new MagicBands offer more than a way to dig deeper into customer wallets.  Here's an excerpt:

But the cashflow aspect is only one aspect of Disney’s new service. When you begin to consider the potential of wearing a wireless ID around your wrist, all sorts of natural, customized interactions will become possible. Imagine a child meeting Mickey Mouse, and after sharing a warm hug, Mickey actually wishing them a happy birthday by name. There’s a digital handshake going on here, of course, but it’s totally imperceptible. All a child is left wondering is, “How did Mickey know me … and that it was my birthday?!?” Animatronics will see a similar personalization, so the otherwise obtuse talking robots can specifically acknowledge the people standing in front of them.  At the same time, MagicBands enable a deeper level of data collection for Disney. They’ll be able to track someone through the entire park--to see their kingdom as a complex interaction model--finding trends in preferences and habits that can no doubt be monetized. Do people who meet Cinderella buy more princess apparel? Do those who eat the cheese fries for lunch go back to the hotel to take naps?

Talk about Big Data and Personalization all wrapped up into one incredible initiative!   Immediately, one thinks about privacy issues, but Wilson points out that parents will be able to establish some privacy controls on the wristbands.   The bigger issue is how Disney uses the wristbands.  I think that the real opportunity here lies in focusing first on enhancing the guest experience.  If this new tool can make the guests enjoy their stay even more, then the money will follow.  People will spend more if they are more engaged and more satisfied with the experience, and if the wristbands can be used to minimize some of the guest's typical problems at the park (consider how mobile apps have helped people find rides with the shortest wait times).   If the experience is enhanced, guests will stay longer at the park, interact with characters and exhibits in a more meaningful way, and avoid some of the frustrations that they typically encounter at the park.  When that occurs, the improved profits will come.
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Posted in big data, customer experience, Disney | No comments

Wednesday, June 20, 2012

How Analytics Can Help You Improve Quality and Reduce Costs

Posted on 7:31 AM by Unknown
I found a terrific example of the use of "Big Data" in Fast Company magazine this month.   The article by Farhad Manjoo describes a situation at Washington Hospital Center.   ER doctors became concerned that many patients returned to the hospital just a short time after being discharged.  A computer scientist at Microsoft Research began to investigate.  He wanted to identify some triggers that would predict whether a patient would be readmitted.  Specifically, he was looking to help doctors identify some predictors that might not otherwise receive much attention by ER physicians and nurses.  He analyzed more than 300,000 ER visits.    Among other things, he discovered that the length of a patient's stay in ER tended to be a good predictor of readmission.  If a patient stayed in the ER for more than 14 hours, they were likely to return to the hospital within a few weeks.  Similarly, if the patient's chart mentioned the word "fluid" at some point, that seemed to predict readmission quite well too.  

This story illustrates how companies can use analytics to help them understand how to improve the quality of customer service, as well as to reduce costs.  Take an automobile dealer.   They conduct repair and maintenance on thousands of cars per year.  A fair number of those cars return shortly after a repair or maintenance appointment, because something is not working correctly or hasn't been done to the customer's satisfaction.   An automobile dealer could analyze the data from thousands of those cases, and it could try to identify the predictors of return visits.  If they could identify a few solid predictors, then they could try to intervene to reduce those return visits.  Those interventions could improve quality and customer satisfaction, while reduce costs (since every return visit is costly).   Many service businesses could apply a similar logic and use analytics to achieve positive results.   Can your company benefit from such an approach?  
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Posted in analytics, big data, customer service, quality | No comments

Friday, February 17, 2012

Big Data, Diapers.com, and the Importance of Analytics

Posted on 7:24 AM by Unknown
Several days ago, the New York Times published an article titled, "The Age of Big Data."  The newspaper described how companies will need many more data analysts who can "help businesses make sense of an explosion of data — Web traffic and social network comments, as well as software and sensors that monitor shipments, suppliers and customers — to guide decisions, trim costs and lift sales."   The article cited a McKinsey Consulting study which predicted that the United States will need 140,000-190,000 more employees with “deep analytical” expertise" in the coming years. 

As an example of the importance of big data, consider the online retailer Diapers.com (owned by Amazon).   Forbes writer Meghan Casserly describes the firm's use of big data in an article published on the magazine's website.  The company has built powerful proprietary algorithms over the past few years based on tons of transactions.  These algorithms predict what customers are likely to buy in the future, how much they will spend, and whether they will be profitable for the firm.  The company's strategy focuses on building loyal customers who purchase low margin baby supplies initially, and then buy higher margin items such as car seats, strollers, and the like in the future.  The algorithms not only help predict purchasing patterns, but they enable Diapers.com and its sister sites to market appropriately to different customers.  Perhaps most importantly, the firm can identify which customers will be profitable for the firm.  Thus, they can spend their time catering to the most profitable customers, rather than wasting marketing expenditures on consumers who will be a drain on resources. 

Every company should be thinking about how it can use algorithms to drive performance.  Analytics can be used in a myriad of ways.   However, building a strategy based on big data requires the right talent.  Therefore, firms need to begin thinking carefully about how they will attract, develop, and retain the talent needed to collect and analyze the huge volumes of data that now exist.  Universities need to think about how to educate people for these roles, as demand will be strong.  We need to do more than educate people in mathematics and statistics though.  We need analysts who can understand business models and strategies, and who have a deep understanding of consumer behavior too.   The best analysts will be those who can marry statistical knowledge with a broader understanding of the entire organizational system.  
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Posted in Amazon, analytics, big data, Diapers.com | No comments
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  • ▼  2013 (126)
    • ▼  August (7)
      • Project Management Podcast
      • Budweiser: Can It Go Global?
      • Break Up the Washington Post Corporation
      • Why Great Leaders Don't Take Yes for an Answer
      • Employee Recognition: The Yum Brands Way
      • Hiring Unqualified Candidates: Why Do We Make That...
      • The Invisible Gorilla
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