Price discrimination and downward demand spiral are widely used analytical concepts/practices in the Airlines and Hospitality industries respectively, long before the term Big Data Analytics was even coined. Incidentally, these concepts have been taught in global elite b-schools for decades. So, how come Analytics, which has been there in practice for decades experience a meteoric rise suddenly? To answer this question, we need to get the Big Picture. Given below are key factors that led to huge buzz around analytics today.
- Proliferation of Data Sources – Every day we create 5 quintillion bytes of data. This comes from digital footprints left on social media platforms, IoT sensors, wearables, transactions to name a few. Interesting fact is that only 1% of data collected is ever analyzed. To put into perspective all that innovation and insights driven by analytics are from analyzing just 1% of the data collected globally.
- Change in Customers’ expectations – Today connected