Today’s businesses are swimming in “big data,” and the “big data pool” is getting deeper by the second. With most people and a growing number of their devices connected to the internet 24-7, the amount of data collected is astounding. For the business leader, data monetization should become one of the main goals.
Avenues to Data Monetization
Professional Master of Business Administration programs – especially the online MBA programs that concentrate in business analytics – are looking at the variety of ways businesses can take advantage of the huge volume of data that they can now tap into. The broad categories include:
- Marketing to consumers.
- Developing new products.
- Improving the customer experience.
- Minimizing risk.
The abilities to properly analyze and apply big data in a business setting are increasingly in-demand skills. Moving forward, the companies that are best able to leverage big data will have a significant advantage in the marketplace.
To get a sense of this data-driven business environment, we will look at some of the sources of the data and some of the most popular applications businesses are using today for data monetization.
Smartphone users are constantly generating information that is valuable to companies. The use of big data in business allows marketers to better understand their customers, their products and how their customers interact with their products.
For example, before the internet, mail-order businesses maintained lists of their customers, which they would “segment” into large general groups based on what they had purchased. Marketing professionals would then craft different offers for these large segments of customers.
Today, companies can collect data on individual customers and market to them on a personalized, targeted basis – not merely by large segments. Information such as the time of day a purchase was made, web pages browsed, the customers’ other interests, and much more can allow companies to achieve impressive data monetization.
The Internet of Things (IoT) is also a major player in big data for business. Our cars, our refrigerators, our home security systems and much more are constantly uploading data through internet connections. This reveals important information, such as how we use products and how the products themselves perform.
Further, when IoT data are combined with the data we generate through our computers, smart phones and other devices, the data can be even more useful. This huge body of information can help companies design new products, improve existing products and anticipate customer service demands, just to name a few possibilities.
Big Data Analysis and Collection
Data monetization does not depend as much on data collection as it does on the ability to analyze existing data. The amount of data available to companies today can be overwhelming, but with the right analysis, it will improve almost every department in a company.
The trick for companies is to be able to take the huge mountain of data that currently exists (and is growing every day) and break it down into the bite-sized chunks that are useful in guiding the decision-making process. This requires professionals who can use the latest statistical tools to translate this data into the information the company needs to make decisions.
Learn more about the University of Tennessee Chattanooga online MBA in Business Analytics program.
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