This website uses cookies to ensure you have the best experience. Learn more

Big Data: The Competitive Differentiator Essay

2046 words - 9 pages

Lower Costs
As some companies are adopting analytics to increase profits, other companies are drawing on analytics to cut costs in a variety of ways. This is an area where shipping company, UPS, is leading in the effective employment of predictive analytics. The company makes use of analytics to monitor all of its 60,000 vehicles so it can verify when to perform regular maintenance services on each vehicle. Where the company previously changed parts on its vehicles every few years to reduce the potential for delays caused by a breakdown, the company is now able to determine which individual parts need to replaced and when. Since UPS implemented this analytics program, it has saved millions ...view middle of the document...

Pharmaceutical distribution and healthcare technology company, McKesson, is another leader in the adoption of analytics to drive supply chain operations. The company developed a supply chain model to manage its in-transit inventory, which provides s real-time view of the cost-to-serve by product line, transportation costs and carbon footprint. This enables McKesson to evaluate the impacts of various changes to its operations and has resulted in a savings of over $100 million in operating capital (Kiron, Shockley, Kruschwitz, Finch, & Haydock, 2011).

More Efficient
Beyond the use of big data in increasing profits and cutting costs, companies are differentiating themselves from their competitors by improving business efficiencies. Results from a study conducted by MIT Sloan School of Management found that productivity levels were up to 6% higher at companies utilizing data for decision making compared to those that didn't (Mayer-Schönberger & Cukier, 2013). These productivity improvements can be attributed to new tools specially engineered to process and analyze data at unparalleled speeds. Mayer-Schönberger and Cukier (2013) recap how the credit card company, Visa, was able to utilize one of these tools to decrease the time required to process two years’ worth of customer transactions, which amounted to about 73 billion different transactions. The company successfully decreased processing time from a full month to only 13 minutes.
Some companies have had success improving human resources related processes through the employment of analytics. In 2011, HP, another company leading in the use of analytics, developed a predictive model to establish which of its 330,000 employees might be a flight risk. The model was developed through the evaluation of two years of employee data, including salaries, raises, job ratings, job rotations and attrition. An interesting trend that emerged during this analysis was the fact that within one of its most productive sales compensation teams, promotions actually increased an employee’s flight risk, especially those that came without a salary increase. This actionable insight enabled HP to utilize retention programs to improve attrition rates of key employees within that division, from over 20% in some regions to 15% with a continued downward trend (Siegel, 2013).
Additionally, companies are effectively utilizing analytics to transform billing and claim review processes. According to Mayer-Schönberger and Cukier (2013), the company ZestFinance is a good example of how today’s data analytics can be transformative to a business. The company assists lenders in determining if they should provide small, short-term loans to people with poor credit. In contrast to traditional credit ratings that are based on a small amount of strong signals, such as late payments, ZestFinance uses a much larger volume of weaker variables to determine suitability. As of 2012, the company claims a loan default rate that is a “third less...

Find Another Essay On Big Data: The Competitive Differentiator

Big Data Analytics: A discussion of the importance of big data in today's world. - South Dakota State University/ Data Science - Essay

627 words - 3 pages on its own does not achieve much unless an analytic platform is created to make sense of the data. Big data is unique because of the competitive advantage it presents to business entities who go the extra mile to analyze it. Big data analytics has made it economically feasible to store, process and analyze data that was previously ignored or under-utilized (Zikopoulos et al., 2013). This means that big data analytics has drastically reduced the

Big Data Gives Business an Advantage

939 words - 4 pages Big Data in Business The way of the world is constantly evolving, technology gets better, faster and cheaper every day and this has created an opportunity for businesses with the right resources to make use of the innovative and unique technology available. That is where big data comes in, companies and corporations are a dime a dozen in this day and age. The world of business is extremely competitive and can often be very merciless; businesses

Big Data

1812 words - 8 pages data. The ability of modern medicine to create a multitude of various data points on a person requires a tool like Big Data to help create faster and more precise methods of treatment. The companies of today are using Big Data to gain competitive edges. A company like Facebook could not provide “Facebook” services without Big Data (Rosenbush, 2013). The Cheesecake factory has benefited from Big Data tools by improving their food inventory

Business Intelligence and Big Data

1614 words - 7 pages opportunity to find insights in new and emerging types of data and content, to make your business more agile, and to answer questions that were previously considered beyond reach. According to Mckinsey – Big Data refers to data sets whose size is beyond the ability of typical database software tools to capture, store, manage and analyse. How is it adding value to organizations? Organizations are beginning to use Big Data to gain competitive

Companies Must Analyze Data to Gain Greater Insight

1369 words - 6 pages keeping an eye on different retail organizational functions and hence can play a vital role in analyzing customer behavior, that in turn assists to meet their ever-changing needs. Business Analytics is a key competitive differentiator for companies and organisations. The pervasive use of infocomm has generated vast amount of data, which continues to grow rapidly over the years. By analyzing this data, companies can discover greater insights about

How to use Research in Making Business Decisions

2258 words - 9 pages success, there is room for improvement, and real threats to Dell's dominance. The basis of this paper outlines the choice of research design, sample design, and data collection that will be used in conducting the business research. These studies assist organizations in developing marketing strategies to address new target audiences, research new product lines, and how to maximize revenue in a competitive marketplace.Business research is loosely

Is Big Data a Strategic Tool?

1545 words - 7 pages also turn these data into competitive goal to gain the competitive advantage. The big data can create value to the business success in terms of innovation and differentiation, to improve organizations’ performance and productivity, and to increasing the ability to make better decision. On the other hand, Big data can be challenges such as the importance of privacy and security, and talent of organization to find the full value of Big data. Body

Information Systems

2021 words - 8 pages players. In that sense, the IS is strategic and very specific to the firm (supporting genuine processes), whereas the IT platform is strategic but generic from a competitive point of view.Within the IS, the soft (human and social) dimension can be the most strategic differentiator. As an example, the first online reservation system-the Sabre system developed by American Airlines to connect customers to its reservation system through terminals

Benefits Of Information Systems (IS)

2093 words - 9 pages strategic but generic from a competitive point of view (Zackman, 2005).Within the IS, the soft (human and social) dimension can be the most strategic differentiator. As an example, the first online reservation system, the Sabre system developed by American Airlines to connect customers to its reservation system through terminals located inside travel agencies, had a strategic design. The system gave American Airlines a greater market share because it

myphone

611 words - 2 pages distributing its products nationwide.Presently considered a reputable name in the Philippine mobile phone market. It has even gotten ahead of some of its multinational counterparts.The company considers its products' customized "Pinoy Content" as its key differentiator. It prides itself to be the only company to offer software exclusively created for MyPhone with a gamut of data such as recipes, jokes, and even prayers.Distributed by MySolid Technologies

Big Data Transforms Businesses Due to Electricity

2336 words - 10 pages Different types of data have a different economic value. And businesses are faced with the challenge of identifying that which is valuable or information that has an economic value to their services and productivity and extracting it for analysis. Importance of big data Big data can help businesses enhance their productivity, lead to a much stronger competitive position and greater innovation because businesses can develop an insightful understanding

Similar Essays

The Importance Of Big Data To Business

900 words - 4 pages Why Big-Data is important Why is Data is important for a company? What are the effects? Competitive advantage: All companies obtain information on their customers or on their product. All these information may help a business to develop new strategies. They can also forge ahead by treating these big data. All companies have in their possession those information, so use it can be very useful. A company can identify for example their

Ibm Transformation & The Influence Of Big Data

632 words - 3 pages Big Data is changing the arena for big businesses. Big Data is the technology trend that has made it possible for businesses to better understand their markets. Big Data is the new natural resource, the new “oil.” International Business Machines, or IBM, saw this trend and moved their company away from hardware and into software and services, following the money. It is because IBM is so adaptive that it has lasted for over a hundred years

The Skills Gap In Big Data Analytics

1950 words - 8 pages estimate by the government, there are about 1.2 zettabytes (250 billion DVDs) of electronic data generated each year by everything from underground physics experiments and telescopes to retail transactions and Twitter posts (Mervis 22). This data growth has created a new challenge and opportunity. The challenge is that, we don’t have sufficiently trained people to analyze Big Data. The opportunity is that if you have the right resources who can

The Collection Of “Big Data;” A Problem Or Convenience?

1132 words - 5 pages One of the biggest concerns in the United States of America today is privacy. For its citizens, this concern is due mostly in part to new developments in technology and big data collection. Yes, this technology and data collection is beneficial for American citizens and is a step in the right direction for humankind, but to what extent? The CQ Researcher article titled, “Big Data and Privacy” by Tom Price answers just that question. More