It is not easy to know if Big Data works unless you see it in action. Having information on at least ten companies and how big data has assisted them can help you understand how the system can be effective. BI on Hadoop has also positively affected how big data works.
Tipp24 AG is a platform used for prediction and placing bets in European lotteries. It used big data to analyze hundreds of customer attributes and billions of transactions. It also uses the same system to develop predictive models that personalize marketing messages and target customers on the ‘fly’. This move led to a 90% decrease in the duration it takes to build predictive models. In the long run, the company had an increased bottom line.
Big Data was used in the mega-retailers latest search engine, which includes semantic data. An in-house developed platform, Polaris, relies on synonym mining, machine learning and text analysis to produce relevant results. Wal-Mart said that using big data has increased the chances of online shoppers completing a purchase by an average of 15%. In terms of profits, this translates to billions of dollars.
This company uses big data to train cameras on drive-through lanes in a bid to determine what should be displayed on their digital menu board. For instance, during rush hour when lines are long, the menu features products that are served quickly. Off peak hours have shorter lines and the menu features higher-margin items. As a result, they have reduced loss of clients during peak hours which in turn has increased their earnings.
In this case study, a customer had jokingly tweeted that the steakhouse chain should send his dinner to the Newark airport. The steakhouse viewed the tweet, found out the client is a frequent tweeter and customer, got data on what he normally ordered, found out the flight he was on and lastly sent a tuxedo-clad delivery man to serve him his dinner. It is a fact that the whole thing was a public stunt that went viral. However, this is not the point. The fact that the stunt went viral made the steakhouse get brand recognition and a marginal increase in orders.
When it comes to medicine, big data is revolutionizing the field. Imagine analyzing trillions of individual strands of DNA in order to create a custom diagnosis for a cancer patient. With this diagnosis, you are then able to recommend personalized medical treatment specifically for the individual, bypassing months of trial and error medication testing. Big data allows DNA information to be housed and quickly analyzed, literally saving patient lives.
An algorithm used to predict earthquakes was taken by PredPol, a team of educators and Santa Cruz and Los Angeles police departments. They tweaked the algorithm and fed it crime data. The end result is software that can effectively predict where crimes are going to happen down to 500 square feet in Los Angeles. Within a short time there was a 21% reduction in violent crimes and 33% reduction in burglaries in areas where the software is used.
The supermarket chain used big data to collect about 70 million refrigerator data points from its units and fed the same into a dedicated data warehouse. The data points underwent analysis to perform more proactive maintenance to reduce energy costs, approximate when the machines needed service and keep better tabs on performance.
American Express Co.
AmEx realized that trailing indicators combined with hindsight reporting can only take a business so far. Traditional use of both these methods are not as effective as a business would want. Realizing this, the company decided to search for indicators that could really predict customer loyalty. They developed 115 variables and sophisticated predictive models that analyses historical transactions to predict potential churn. Currently, the company believes it has identified 24% of Australian account that will close within the next quarter.
Companies like Expedia, Travelocity, and Priceline are all analyzing data from hundreds of other competitors sites and spitting out quote comparisons simply and in real-time. With thousands of companies cropping up online each week, sites that combine, analyze information and reduce search time for consumers will continue to grow. For example, sites that compare insurance quotes with big data analysis leave the work to branded businesses, and simply pull and present data with a clean and consolidated site. Big data is essential in automating this process, and sites that capitalize on its automation will continue to find success.
Express Scripts Holding
This is a company that processes pharmaceutical claims. It realized that the people who are most likely to forget to take their medications are those who need to take medications from the company. Through big data, they developed a new product; automated phone calls and beeping medicine caps. These products remind patient’s it’s time to take their medication. According to Express Scripts, the sales of the products are at an all-time high.