Big data is defined as several different digital techniques used to process large amounts of complicated data that could not be done manually (Fischer, 2020). These digital techniques include artificial Intelligence and machine learning systems (Ward and Barker, 2022, p.2). The use of big data techniques to process data is important to companies as it allows companies to better understand this data to gain a better understanding of the behaviour of their target audience. The companies can then use this data to improve their business strategies. An example of a big companies who utilised big data effectively was Just Eat and they achieved great success from it. Therefore It is important for start-up companies to utilise it early on to gain a better understanding of there target audience and tailor any content they make to meet their customer’s needs.
What is Big Data?
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Big data systems, as mentioned previously helps companies process large amounts of data which helps them gain a better understanding of this data and learn more about there target audience. How does big data systems do this though? Let us look at the characteristics of Big Data tools:
1. Volume (Fischer, 2020, p.2). Big Data processes large amounts of data.
2. Velocity (Fischer, 2020, p.2). The fast speed in which big data processes this information.
3. Variety (Fischer, 2020, p.2). The different types of data that is processed.
4. Veracity (Fischer, 2020, p.2). The accuracy of the data.
5. Value (Fischer, 2020, p.2). The usability of the data.
6. Variability (Fischer, 2020, p.2). Inconsistent variables relating to the data.
To help you gain a better understanding of how a company can apply big data systems, let us look at the successful application of big data by Just Eat.
Just Eat was originally
utilising a lifecycle targeting model to encourage customers to order food at specific
times however the issue with this approach was that it was collecting data on the
order times of groups as opposed to the order times of a specific individual (WARC, 2022). As each person has a different schedule,
the approach was unsuccessful in prompting the customer to order at the right
time for them (WARC, 2022). To combat this issue and gain a better
understanding of there customers, Just Eat decided that they were going to
implement an AI model that would continuously match with what their customers
were ordering enabling them to target the specific customer as opposed to large
groups like with the original lifecycle model (WARC, 2022). Just Eat worked
with Smarty Pants consultancy and Braze to create this AI tool that utilised
every Just Eat customers ordering frequency to predict the customers next order
date (WARC, 2022). An experiment was then conducted in the UK and Spain over a six-day
period to see if the tool worked (WARC, 2022). The results showed by implementing
this AI tool to prompt customers to order at a specific time orders were
increased by 40% (WARC, 2022).
Here we see the importance of big data when it comes to gaining a better understanding of the customers behaviour. Just Eats original model was too broad and they were not able to determine the best time to encourage customers to order. The AI tool collected data that fit most of the characteristics outlined previously. The data had a large volume as all customers order time preferences were collected, this data was collected at a quick speed considering the number of users Just Eat has and since the experiment was conducted over six days, the data was accurate and valuable as shown by the results.
Now we know what big data is and why it is important for companies to utilise it however there is one issue when it comes to the application of big data for start-up businesses. The issue is the cost. Just Eat had revenue to develop this AI tool unlike most start-ups who would not have the financial backing to do so. How do start-ups utilise big data systems in a cost effect manner?
Do not worry, as we have you covered. Included below is a list of free big data applications you can use for your start-up business for FREE.
1. The first big data tool you can use for free is Apache Hadoop. This tool allows for processing of large amounts of data over a huge number of computers (Apache Hadoop, 2022).
Download link - https://hadoop.apache.org/
2. The second big data tool is HPCC Systems. HPCC systems works like Apache Hadoop as it gives you the ability to access and combine different types of data at a fast speed (HPCC Systems). If you do not like the interface of Apache Hadoop, you could instead use HPCC or the other way around. They both provide the same service and are both free.
Download Link - https://hpccsystems.com/
3. The third big data tool is Apache Storm. Apache storm like the others allows you to process large amounts of data while being quick and easy to use. The tool allows gives you real time analytics information.
Download Link - https://storm.apache.org/
In conclusion, as shown previously big companies like Just Eat can encounter the same issues start up companies have when it comes to understanding the behaviour of their target audience. It is important to have a strategic plan in place to organise the large amounts of data, have a way to then understand the data allowing you to then manipulate the data to improve your business model and big data tools allow you to do that which is why they are so important. Use the free big data tools above to improve your business model and let us know how you get on.
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Author is Jason Flood
Apache Hadoop (2022) ‘Apache Hadoop’. Available at: https://hadoop.apache.org/ (Accessed: 08 February 2022).
Apache Storm (2022) ‘Why use Apache Storm’. Available at: https://storm.apache.org/ (Accessed: 08 February 2022).
Fischer, F. (2020) ‘What is your definition of Big Data? Researchers’ understanding of the phenomenon of the decade. A journal article at the National Library of Medicine. National Library of Medicine, 15(2). Available at doi: 10.1371/journal.pone.0228987 (Accessed: 08 February 2022).
HPCC systems (2022) ‘Why use HPCC systems’. Available at: https://hpccsystems.com/ (Accessed: 08 February 2022).
< (2022); Just Eat: Using AI to serve up the next meal; Data and Marketing Association, WARC [online], (Accessed: 08 of February 2022). Ward, J. Barker, A. (2013) ‘Undefined by Data: A Survey of Big Data Definitions.’ University of St Andrews, 1(0), JURN (online). (Accessed: 08 February 2022).
This is an interesting article that is essential for all businesses to gain a better understanding of their customers' behavior and to keep the data organized and saved. It is wonderful to have free options tools for start-ups as an entrepreneur; however, we must first learn how to use these tools and save as much money as possible. Thank you very much
ReplyDeleteWhat a great article!
ReplyDeleteIt is really interesting to read about big data trough the start-up perspective. From my experience start-ups and small businesses can sometimes underestimate the importance of collecting and processing data. This could be due the fact that the business idea could come from a place of strong passion and belief in the business opportunity, resulting in an excessive trust in their existing conviction. Especially Start-up businesses that are entering a competitive market needs to find out what is really happening and make sure to back up all their business decisions with data-collected evidence.
Wow, incredibly interesting article. I personally had no idea to what an extent big data plays a role and its vital aspect of businesses today. Alla data isn't necessarily good enough data. Much respect to companies like APACHE Storm, Hadoop & HPCC Systems for supporting the newcomers in the business space. Many good tips in the article to improve your business model & way to collect data.
ReplyDelete