Big Data vs. Big Applications of Small Data

Big data is awesome and has done a lot of great things for businesses, as we have seen in a lot of the previous blog posts. We have become obsessed with big-data and the idea that it will translate to profitable businesses. One of the reasons that big data has become so popular is because it promises a new age of science to decision-making and business reasoning.

Despite all of these promises, it is still unclear how to move from vision to reality. However there is another type of data that is easier to deal with but can still give a lot of useful information: small data applied in big ways. Two different businesses have capitalized on this idea and have profited greatly from it.  One business is Burberry, which is a luxury brand, and the other is Caesers, which holds stakes in hotels, spas, and casinos.

Burberry started using data in business by simply creating a better experience for its customers. It put screens to connect shops to the head office, installed audio-visual customer information screens, and gave the staff iPads. This led to the company to using social media to engage its audience and cross-reference the information gathered from in-store purchases to the iPads that the staff had. This is all considered small data but that is used in a big way.

Caesars Entertainment started with big data analytics long before Burberry started using small data. However, they were unsatisfied with the lack of small details in the big data that they had previously acquired. They decided to revamp the customer experience and followed customers from search until they appeared on Caesears property.  Caesars has expanded that so that customers with a losing streak receive a personalized voucher.  The company has learned when it is best to give credit to a customer and when it is best no to do so.  

Burberry and Caesars, coming from different ends of the data spectrum, both ended up in the same place: focusing on small data in order to make sure the customer comes first. This has led to profit increases for both companies and Burberry became the fastest-growing luxury brand in 2012. So even though this class is focused on big-data, we must not forget that small data applied in a big way can be just as valuable. 

Source:
http://www.forbes.com/fdc/welcome_mjx.shtml