June 19, 2012
BIg Data - doing business faster than real-time
McKinsey & Company tell us what "faster than real time" actually means...
Philipp Nattermann, Partner
What is big data and where is it coming from? Every web interaction, transaction, social media posting is creating. 1200 Exobytes of data is being generated this year - 95% of it is digital. 53 zetabytes by 2020!
Mobile internet is exceeding desktop traffic in emerging economies. We have data, we have the computational power - and now we have the ability to compress and store it. So now we need to analyse it. It's all these elements happening now that are waking this happen. We can have massive amounts of experimentation in real-time. We can mash up data and get behavioural and intent-based information, rather than stated. Big data is bigger, quicker, better.
Eric Hazan, Partner
Research and purchase have moved online. Even furniture, health and beauty etc are shifting that way. But what is really increasing is mobile research. Social networks are becoming gateways to all other activities. They're the first place we get access to content. This is completely changing the way companies interact with their consumers. Online buzz for Free mobile was bigger the fro any competitor in France - and they didn't pay for advertising.
There's a real chance to map mistakes in all this data. Five steps to get it right:
- There is a wealth of data out there: use it
- It applies to all organisation
- Data-based decision making
- Managing through big data
- Real business impact - competitive advantage
There's an 80% correlation between search intensity for crisis-related terms and yields on government bonds in the distressed economies. You can predict people's chance soy getting flu based on their searches for it. FMCG companies use search intensity to predict levels of sales, and plan their supply chains.
Google search trends for the second week of the month is the best predictor for car sales for the month. This will only get better as more people participate in online research. 0.9 correlation coefficient between a movie's tweet rate and its box office performance.
There are people are crunching geo-data and social data. Startups are leading the way. Some for marketing, some for investment, and some for sociology reasons. Kaggle.com. People are managing their data through big data. Barak Obama's campaign uses data analysis to build voter profiles. Amazon has 25 PhDs working on different versions of the website. People using big data are growing much after than their sectors.
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