How to translate Big Data into sales

The internet is in a state of constant flux. Growth in data hasn't just been fast — it's been exponential. Statistics suggest that 1.3 zettabytes will be whirring around the web by 2016, an acceleration of information that was virtually unfathomable just a decade ago. It's nearly impossible to predict what the next decade will hold for network growth, but there is one constant: having a business strategy that is able to adapt to changes is the only way to remain relevant.

For the foreseeable future, that involves a comprehensive Big Data policy. Rich Spitzer of TrendPointers, Inc., a company that specializes in the industry, sums up how necessary it is to stay current.

"With big data, it's all about identifying what's coming up, as it is coming up," explains Spitzer. 

The actual storage of this information is becoming easier than ever, thanks to the rise of cloud computing. However, with this ability to collect data comes an attendant burden of actually sorting it and figuring out how to translate it into sales. For many companies, this process is outside of their comfort zone, as they don't have the available staff or infrastructure. 

This is where a product like FileMaker can play such a pivotal role. FileMaker developers can help a business new to Big Data devise an easy and comprehensive strategy that will transform a jumble of unconnected numbers into an actionable plan that will translate to sales. These days, companies simply can't afford to fall behind when it comes to collecting information. 

Big Data could transform underwriting

More than many other industries, insurers have to deal with information. How likely is it that an accident will occur? What is the proper amount to pay out if it does? Based on the answers to the previous two questions, what is the appropriate monthly premium to charge the consumer? Because these calculations are iterated across so many people, a small increase in their accuracy could seriously boost revenues.

Despite this, some insurers have been reticent to adopt Big Data principles. However, as its efficacy becomes proven across other industries, companies are taking note. To date, more than two thirds have implemented some sort of analytics program, across a variety of sectors.

Not only does it help them with claims adjustments and underwriting precision, it can also improve their sales and marketing funnels. In short, they can better target potential consumers, and then, once they've retained them as customers, can offer a higher level of service.

Managed IT services that incorporate programs like FileMaker have internal benefits as well. Using real-time personal metrics, underwriters can better manage the risk profile of their companies, and reduce exposure to financial catastrophe. Because they can better build and evaluate models that calculate exposure, the underwriters can see how a particular position affects their overall book. In some cases, this information might lead a business to take a more aggressive stance, which can lead to increased revenues and an opportunity to take advantage of subtle market shifts.

Insurance is a competitive business, and companies that are not taking the possibilities of analytics into account find themselves at a risk for falling behind.

Pitfalls to avoid when using Big Data in marketing

Marketing, at its core, is about two things: figuring out what exactly people want, and then positioning your product as the one that can deliver that most effectively. For a long time, before the ready proliferation of information, marketers were forced to do that via instinct — they had to quickly size up consumers and then hope that their impressions were correct. It was difficult, if not impossible, to determine how effective their techniques were.

Big Data changed that process. Instead of making choices blindly, marketers were able to use data to effectively identify the needs of their customers and figure out how best to target those needs. However, despite that obvious value, there are some pitfalls that are important to avoid in order to get the most out of the process.

Identify your core brand. It's critical to be able to adapt, but it's also crucial to provide a sense of continuity. Even companies with histories as long as Coca-Cola aren't immune to this trap: In 1985, the soft drink giant introduced "New Coke", a brand that tasted similar to top competitor Pepsi. Management thought it was a slam dunk. Pepsi had been winning in blind taste tests, so people clearly would gravitate towards this novel drink, right?

Wrong.

It became one of the biggest disasters in marketing history. Eventually, Coca Cola brass came to a conclusion that they should have started with — instead of using data analysis to copy your rivals, you should use it to enhance what is positive about your own brand. Once they went back to that, they retained their market dominance, and are still the leader in the industry, nearly two decades later.

Another potential mistake that marketers make is becoming complacent. They set up their custom database software, and expect it to do all of the work, while they blindly implement whatever it says to do. The oversight here is two fold. Not only is it important to have systems in place for properly evaluating the results and being able to separate signal from noise, it's critical to continue to improve the way in which you input data. Getting help with FileMaker isn't just a good idea, it's one that could save your core business.

Like any powerful tool, Big Data is incredibly helpful with the right insight and guidance. To properly wield it, make sure you have a firm understanding of the implications.

‘Smart plows’ use real-time data to keep roads safe

Residents across the Northeastern part of the United States, from Ohio to Maine, are in the process of digging out from the first major snow storm of 2014. Some areas have seen as much as two feet of the white fluff pile up and keeping the roadways clear is becoming increasingly difficult. On top of that, the below-zero temperatures are making road treatment processes less than effective.

This scene is not unusual in many parts of the United States during the winter months, but there is a new innovation that is making snow removal and road work much easier.

A recent article from the Daily Camera, a Boulder Colorado newspaper, profiled the National Center for Atmospheric Research (NCAR) and the new "smart plow" it developed and is testing in Michigan, Minnesota and Nevada. The process works by analyzing information from several databases including satellite and radar observations, computer weather models and real-time data collected from special sensors outfitted to plows that are clearing the streets.

The goal is to continuously monitor weather conditions and keep up with trouble areas more effectively. This will reduce accidents and save states potentially millions of dollars in maintenance.

"Whereas in the past, drivers would have some new data maybe every 30, 40 or 50 miles, now you could just look up every mile, and hopefully pick up the more subtle small things that happen on the roadway," said Sheldon Drobot, the NCAR scientist who has overseen the system's design.

This is just another example of how custom database software can be used to harness big data and improve an aspect of daily life.

What your company can learn about Big Data from a children’s comic strip

You’d be hard-pressed to find a better motto for Calvin and Hobbes than “there’s treasure everywhere.” Bill Watterson, the strip’s artist, thought it fit so well that he even used it as the title for one of the comic’s collections. The eponymous line is spoken when Calvin, after digging in the yard for hours and finding nothing more than rocks, a weird root and some grubs, happily shows off his bounty.

This same sense of optimism can and should guide your company’s forays into the world of Big Data.

Large-scale projects are popping up that are designed to cull billions of interactions and speak to the greater human experience. However, that doesn’t mean that there isn’t a lot of value in smaller projects that you can do without a huge expenditure on infrastructure. With a small amount of FileMaker development, your business can begin getting valuable insights without needing to add an entirely new department to analyze it.

A recent article in Ad Age spoke to just how many insights can be yielded when you just start looking.

“There really is data everywhere that you can tap into right now that will help you understand how customers, suppliers and others view you, your company and your products,” writes author Jim Louderback.

Finding out more about your potential consumer base and how you can best serve them doesn’t have to be an endeavor that bankrupts you. Instead, you can grab a copy of FileMaker, roll up your sleeves and start digging in your own backyard. There could very well be buried treasure cleverly disguised as old rocks.

New developments in Big Data

Today, more and more businesses are relying on Big Data to either keep pace with or gain an advantage on their competitors. Companies are better understanding the value that a CT FileMaker developer can add to their brand, between better understanding of their customer base and a better awareness of how they can best serve them. Now that these ideas are more mainstream, the next iteration of these principles will feature several exciting improvements. 

One facet to see growth will be in speed. It almost seems impossible that information could get any faster, but that's exactly what's happening. Companies like Hadoop and Apache Spark are releasing software that promises memory processing that will happen almost in real time, an astounding upgrade that will no doubt have impressive implications. For example, businesses that employ sensors (like weather applications) can receive up to millions of individual "events" per second. Being able to parse that data more quickly will lead to better analysis and more streamlined results. 

Not only will information be more swift, it will be of better quality. Data collection has already far surpassed the human capacity to manage it manually, so it's processed based on rules defined by programmers ahead of time. In general, this allows for decision making to be done at a higher level than ever possible. However, a small piece of erroneous data can wind up having a relatively large effect. Improving the information gathering process and quickly expurgating bad data points will have an exponential effects on the overall quality of the analysis.

This improvement will also lead to new possible applications. Various industries have already seen the value of Big Data, and as it becomes more reliable and widespread, that number will only increase. The help of FileMaker consultants means that now even small businesses can harness this power without requiring specialized infrastructure or data scientists. The democratization of Big Data could also lead to breakthroughs: the more people have access to a strategy, the more people will be able to improve it. 

As we head into the new year, the future of analytics is bright, indeed. Not only will these new applications make those businesses function better, they could also have a positive effect on health care, diet, food and entertainment. 

The role of intuition in Big Data

There's a misconception that analytics and intuition are inherently at odds. That once you've hired a Connecticut FileMaker developer and invested in the attendant software, there's no longer a place for the sort of shrewd decision-making that comes with first-hand experience. In fact, this couldn't be further from the truth: using Big Data can support and confirm intuition, and allow you to pursue the hypothetical to a degree that would otherwise not be possible. 

One of the most obvious uses for this sort of naturalistic insight is in choosing the right subject in which to apply analytics. You can't get data on everything, so deciding where the software would be best applied requires a keen understanding of the nuances of your company. 

One salient example of this wisdom is the Caesar's chain of casinos. CEO Gary Loveman noted that there was low customer loyalty across his properties and that the customer service experience could be improved. This tactic hadn't been attempted in the gaming industry, but Loveman had a hunch that it could be a valuable piece in the revenue puzzle. 

But he didn't stop there. Instead, he invested in long-term analytics projects that sought to parse out exactly where the "service profit chain" could be strengthened. Loveman also understood the importance of orienting and guiding your information processes, which is why he insists on a ROI calculation for these sorts of projects. If you don't know how to use it properly, all the data in the world is for naught.

In the end, FileMaker is a tool. It's an incredibly valuable and powerful one, to be sure, but it requires the right craftsman to get the best out of it. 

How to sell your company on Big Data

Having a working knowledge of analytics is quickly shifting from "quirky ancillary benefit" to "business essential." For some new industries, using Big Data principles is second nature. However, especially if you work in an older or more entrenched field, your company might be resistant to these changes, and may take some convincing. Here's how you can speed up that process.

Using the right terminology is key. While IT jargon might come as second nature to you, inundating the conversation with unfamiliar phrases is likelier to yield glazed-over faces than nods of agreement. Business terms can go a long way towards helping you explain your case, and it's hard to go wrong with everyday language. Instead of discussing the "volume acceleration of corporate data availability," try pointing out that your competitors know more about your customers than you do, and that's hard to beat.

Once you've figured out the language, build your case. You don't have to address every single problem that your company has — in fact, highlighting a concrete issue that can be solved through use of analytics can go much further than positing it as a panacea. For example, say you have a problem with customer retention: people are coming through and buying things, but they're not coming back frequently enough. You can sell Big Data as a way to identify exactly where you're losing the consumer so that you can patch up those gaps and increase revenue.

Finally, make sure you point out how simple it can be to implement. Once you know how to use FileMaker, it's easy to create databases and sift through data quickly, and the results can really boost your business.

Three Big Data risks, and how to avoid them

Any company that isn't at least considering the use of Big Data puts itself in danger of falling behind the competition. It's hard to keep up if you're working with far less information than others in your industry, so keeping abreast of current trends is virtually imperative. If and when you do dive into the world of custom database software, it's important to be aware of the risks. Here are three of the big ones — and how you can navigate around them. 

1.) Dexterity loss

If you have multiple levels to your company, data has to scale to fit all of them.  In order for management to make accurate decisions, it needs to have immediate access to the information. At the same time, others in the organization need to be able to see relevant data as well, so that they can implement any changes made. Getting it from one branch of your business to another can cost valuable time.

To avoid this pitfall, carefully consider structure before you implement any sort of database. A mobile platform like FileMaker can help easily sync findings across devices, so it's just as easy to access from a worksite as it is behind a desk.

2.) Financial loss

There's not question about it, Big Data takes some initial capital. If not used properly, all the money used to set up the programs will largely be wasted. A company that isn't on the same page runs the risk of not fully investing in the principles, and not getting the most out of the entire process.

That's why it's so crucial to have a game plan before you begin spending money. FileMaker consultants can help make sure you get the most out of your software, and provide a course of action that sets your company up for success.

3.) Security Loss

The more data you're using, the more data is available to be hacked or otherwise compromised. Especially if you're in an industry, like healthcare, where information can be sensitive or proprietary, if not carefully guarded, there is an inherent risk of a security breach.

So, it's critical to know the rules of your industry before you begin collecting data points about your customers. Carefully research any laws or statutes, and consider investing in insurance to minimize your liability. Limit access to software to those that require access, and transparently disclose what data you collect, and what you use it for. 

Predictions for the future of Big Data in 2014

Not only is Big Data growing, it's flourishing. 

That's the implication behind predictions released by IDC and the International Institute of Analytics (IIA), networks of industry experts who work to track developments and project future changes. The former projected that the market for Big Data will climb over $16 billion next year, a growth rate 6 times that of the overall IT market. This increase will be spread out between services (like FileMaker support), software and infrastructure. 

For the IIA, the future of the industry is in value. Now that it has the ability to bring together all of this new information, companies will want to focus on demonstrable advantages. This could lead to changes in business practices, creating process that better make use of these new technological opportunities. The institute also noted that there was something of a lack of talent when it comes to high level analytical ability, which led them to make further predictions about how businesses will get the most value. 

One projection is that managers would focus on developing their internal capacities to handle information, as well as setting in place processes to increase cooperation across departments. Companies that are unable to scale might then look to outside help, where "ready-made analytics" services can help otherwise lagging businesses get the advantages of Big Data.

A related prediction from IDC is that investors will focus on applications. One example is the healthcare industry, which has been making overtures towards using Big Data for some time, and appears poised for an information revolution of sorts. 

Whether or not these specific predictions come true, one thing seems clear: Big Data is the future, and it's not going anywhere.