Archive for June 29th, 2008

29
Jun
08

Intersection of Business, Science, and Technology: Business Analytics

The world of business, analytics and technology is converging. Today, it can be rarely separated since there is a close correlation between them, as it helps businesses get closer to their customers by understanding, predicting and delivering what they need. Atomai brings this trend & insight out very well. Read to know more:

Companies like GE, Microsoft, Hewlett-Packard, IBM, SAS Institute, Exxon, and Google are among the thousand of companies around the world that are working to unleash the power of the mind by intersecting business, technology, and science. Business analytics is the future, and the future is now.

Some time ago business, science, and technology were three distinct and separate disciplines. The advancements in these three disciplines during the last five years have created a quantum leap in how each directly affects the others. Businesses, large and small, make global transactions on a daily basis. Technology allows people from around the world to communicate internationally and storage large volumes of digital data. Science allows accurate predictions using large databases around the world.

29
Jun
08

Content on-demand will open more information about customers

Here’s an interesting trend from emarketer on what to expect in the next couple of years on content and data of what & how customers will watch TV and consume entertainment which will become available for analytics &  targeted marketing.

“At eMarketer, we believe TV viewers will watch more, not less, TV content in the future,” says Ben Macklin, senior analyst at eMarketer and author of the new report, TV Trends: Consumers Demand Control. “But they will be accessing and viewing it in different ways from the past.”

eMarketer estimates that by 2012 nearly 25% of all TV content watched each day will be time-shifted, on-demand, on the Web or on a mobile device.

“Video-on-demand, digital video recorders, the broadband Web and 3G mobile phones are giving consumers new ways to access and watch TV,” says Mr. Macklin. This does not spell the end of the traditional live TV broadcast or the traditional 30-second ad break, but TV advertising will need to evolve if it is to keep pace with consumer usage.

“Traditional TV broadcasters and advertisers have little time to wait to reinvent themselves and their organizations to take advantage of the interactive, on-demand and mobile video future,” says Mr. Macklin.

29
Jun
08

The Data Deluge Makes the Scientific Method Obsolete

Chris Anderson has written a great article in Wired on the data deluge and how it poses new challenges to the companies. He writes that the petabyte age that we live in information is not a matter of simple three- and four-dimensional taxonomy and order but of dimensionally agnostic statistics. For companies, that have or gather loads and loads of data, the implications are about how can they quickly sift thro’ this massive volumes of data and the successful ones will be the ones who can track and measure this with unprecedented precision and scale. Take a look:

Speaking at the O’Reilly Emerging Technology Conference this past March, Peter Norvig, Google’s research director, offered an update to George Box’s maxim: “All models are wrong, and increasingly you can succeed without them.”

This is a world where massive amounts of data and applied mathematics replace every other tool that might be brought to bear. Out with every theory of human behavior, from linguistics to sociology. Forget taxonomy, ontology, and psychology. Who knows why people do what they do? The point is they do it, and we can track and measure it with unprecedented fidelity. With enough data, the numbers speak for themselves.

The big target here isn’t advertising, though. It’s science. The scientific method is built around testable hypotheses. These models, for the most part, are systems visualized in the minds of scientists. The models are then tested, and experiments confirm or falsify theoretical models of how the world works. This is the way science has worked for hundreds of years.

Scientists are trained to recognize that correlation is not causation, that no conclusions should be drawn simply on the basis of correlation between X and Y (it could just be a coincidence). Instead, you must understand the underlying mechanisms that connect the two. Once you have a model, you can connect the data sets with confidence. Data without a model is just noise.

But faced with massive data, this approach to science — hypothesize, model, test — is becoming obsolete. Consider physics: Newtonian models were crude approximations of the truth (wrong at the atomic level, but still useful). A hundred years ago, statistically based quantum mechanics offered a better picture — but quantum mechanics is yet another model, and as such it, too, is flawed, no doubt a caricature of a more complex underlying reality. The reason physics has drifted into theoretical speculation about n-dimensional grand unified models over the past few decades (the “beautiful story” phase of a discipline starved of data) is that we don’t know how to run the experiments that would falsify the hypotheses — the energies are too high, the accelerators too expensive, and so on.

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At Cequity, we believe customer intelligence will be the biggest competitive advantage enterprises will have in the next decade or two. Successful enterprises of tomorrow will be the ones who can organize and leverage this information at speed to optimize their marketing performance, increase accountability, improve profit and deliver growth. Cequity insights will bring to you trends and insights in this area and it’s our way of sharing best practices so as to help you accelerate this culture and thinking in your organization.

 

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