BCOR 2205 - 1-1b

Data Acquisition and Usage by Companies

Definition of Data

• Data is essential for decision-making in businesses. It helps companies operate more efficiently and effectively across various sectors.

Types of Data

Internal Data

• Internal data: Information that a company collects from its own operations and resources. This data is stored within the company's servers and systems.

• Examples include:

  • Sales records

  • Customer relationship management (CRM) data

  • Operational efficiency metrics

External Data

• External data: Information that companies purchase or obtain from outside sources. Examples include:

  • Scanner data from retailers like King Soopers or Whole Foods, showing customer buying behavior.

  • Social media data, such as user interactions and preferences from platforms like Facebook.

Data Usage Across Different Businesses

• Companies across various sectors utilize data for improvements:

  • Banking: Risk assessment and customer behavior analysis.

  • Insurance: Fraud detection and claims processing.

  • Transportation: Route optimization and safety tracking.

  • Retail: Inventory management and understanding consumer trends.

  • Healthcare: Patient monitoring and treatment analysis.

  • Education: Tailoring learning experiences based on student performance.

  • Energy: Demand forecasting and resource allocation.

  • Media: Audience targeting and content personalization.

Data Gathering Techniques

• Companies integrate data collection techniques, such as:

  • Using machine learning algorithms to analyze data trends.

  • Engaging users (e.g., eBirds app) to input data for aggregating and seeing migration patterns of birds.

• Social media platforms leverage data extensively:

  • Machine learning aids in features like facial recognition, predicting user interactions, and even foreseeing personal changes.

  • Example: Facebook predicting relationship status changes before they happen based on data analysis.

Customer Relationship and Churn

• Customer Churn: Refers to the phenomenon of customers leaving a service provider, e.g., switching from AT&T to Verizon.

  • Companies analyze data to anticipate and mitigate churn:

    • Identifying trends in customer preferences and satisfaction.

    • Tailoring marketing efforts to retain customers.

• Retailers utilize data for better inventory decision-making:

  • Stocking based on local demand and preferences.

  • Crafting personalized marketing strategies according to customer data.

Personalization and Advertising

• Data enables companies to create personalized marketing campaigns:

  • Understanding individual customer preferences allows for tailored promotions.

  • Demographic factors (age, sex, etc.) influence the ads shown to users.

• Data tracking through cookies: Companies use cookies to collect information on user behavior across the internet, allowing them to tailor their marketing strategies.

Efficiency in Delivery Services

• Delivery services leverage data to:

  • Monitor driver routes and improve efficiency.

  • Reduce operational costs and accident risks through data analytics.

  • Enhance customer satisfaction through tracking of delivery times and service quality.

Health Monitoring Technologies

• Health devices track real-time data concerning:

  • Physical activity (e.g., steps, heart rate).

  • Patient health conditions (e.g., blood pressure).

• These devices contribute to enhanced health monitoring and patient care.

Data Security Concerns

• Security of personal data is an increasingly important topic:

  • Companies use various methods to protect data, such as authentication processes and biometric security measures.

  • Growing discussions around the ethical implications of data storage and usage in relation to user consent.

The Increasing Volume of Data

• Data generation is at an exponential rate:

  • Companies are accumulating vast amounts of user data, often for potential future use.

• Discussions in class will revolve around the ethical considerations of such data storage practices and whether they serve users or pose risks.