Big Data- Hope for a Better World

Readings:

Capturing Value from Big Data at Comscore – Through Platform, People & Perception

Numerati

How big data can improve your health

Shopping and Social Media: Retailer’s guide to big data

I read this article (http://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/) about two years ago as I had just embarked on my MBA journey. It completely changed the way I look at both data and people. As recently as a month ago, this was in the front page of most media websites: http://www.nytimes.com/2014/06/30/technology/facebook-tinkers-with-users-emotions-in-news-feed-experiment-stirring-outcry.html?_r=0; on how Facebook was running tests on its users. And finally Amazon, in my opinion one of the best purveyors of big data know what you want http://mashable.com/2014/01/21/amazon-anticipatory-shipping-patent/ and has even patented the idea. This is beyond the recommended buys that we see when we log into Amazon. We live in a world of information overload and intense competition. Especially in mature markets such as the US, where brands and buying habits are well established, gaining even a sliver of market share, tips the scale in your favor. This relentless pursuit of people preferences is the direct result of this intense competition.

I work in a world of numbers and data (although not of people’s shopping preferences!) – albeit aircraft usage, automotive reliability and medical device design and testing. The analysis of usage or historic data to predict future trends has been around for ages. For instance, every time an aircraft flies, giga-bytes of data is collected- everything from the turbine engine parameters to aircraft cabin conditions- by both engine companies and airframe manufacturers- with the goal of ensuring a safe flight, charting out maintenance and building better products. The same is true of automobile black boxes- where a driver’s usage data is downloaded every time we drive to the dealer for routine maintenance. In the medical world tracking individual patient vitals and parameters has been around for a long time too. In my world it’s called Prognostic Health Management- using data to predict how the next mission will go and basing maintenance on that information. The growth of computing power and easy access to all this data allows us to start making sense of this data and drawing trends and making forecasts.

So what do we make of the Amazons, Targets and Krogers of the world that are relentlessly selling to us. On one side it is flattering to be given the attention- coupons and products tailored for specific consumer. However, I see the role of big data being more than just selling stuff to a consumer. It is a way for firms to become lean, efficient and focused. Manufacturing less and selling more, reducing waste, reducing our carbon footprint, reducing our energy consumption. It also allows to firms to start extracting better value for the products and services.

Beyond Varimed and correlating genetic trends with diseases, big data has a significant role to play in health care. Based on people’s lifestyles (buying habits) we can start to predict the possible health issues and try and prevent them, it will go a long way in alleviating health care costs. Research is underway at many universities to monitor certain vitals and predict cardiac arrests or even strokes before they occur based on data correlations. In my opinion, big data has the potential of changing our lives in a positive way although at first blush it seem like “Big Brother” is watching our every move.