Rise of Big Data

The purpose of data analysis is to use statistical techniques to analyze available data for the purpose of enhancing decision-making. The rise of Big Data is changing the way business decisions are made and is expected to continue altering the face of business well into the future. Read the Disney Cases attached and answer below question.

Disney uses customer generated data to enhance the customer experience. What other ways do you think companies use customer-generated data do you think other companies use to enhance decision-making? What are some of the ethical considerations that should be considered when using customer-generated data? Provide specific examples for each.

ANSWER

Big data has undoubtedly caused a shift in the world of business where companies that have refuses or lagged behind in the digital transformation have been phased out by the completion. Apart from using customer generated data to enhance customer experience, big data is used in market segmentation where information from customers is used to create market divisions that are on the basis of demographics, attitudes and behaviour. With these information businesses are able to design products specially targeted for these segments. Secondly, this data is used to forecast patterns that are crucial in understanding demand for products and services. Thirdly, big data is uses in the process of pricing where analysis of data from various sources including the competition can lead to the answer to the question of how much a targeted market is willing to pay for a product or service. Lastly, big data has been used to ascertain customer satisfaction.

Customer-generated data contains a lot of ethical issues that companies like Disney mist consider. The first issue is information security. A good example is the Yahoo Case of 2014 where hackers exploited a vulnerability to the system and accessed private emails containing private information. In the digital age, digital information has no shortage of risks and companies must brace themselves to protect the customers whom they serve. Secondly, it is the use of this data to further a third party agenda. This is common on the internet where information submitted on one site somehow ends up determining the advertisements displayed on a third party website. This is a bridge of customers’ privacy because it involves sharing their information without authorisation. Companies like Disney have to trend carefully along these issues because they are at the highlight of most governments and regulators and could see some companies branded illegal for acting out of the rules.