Focus on Innovation

Marketing and Big Data

Franz Klotsche, 304475@student.saxion.nl
Academy Creative Technology, Saxion hogeschool Enschede
Research coach: Johannes de Boer

Bezorgdheid, Mediathek concept mapping, judging, visual and media literacy, philosophy, core and
boundaries, privacy. Cases, relations, causes (variables), eliminate problem,

Abstract
Verschil tussen wie ik ben en hoe bijvoorbeeld
google mij ziet
Of andere big data services
de-Centralizing of the internet

1. Introduction
The creative industry and technology is rapidly
changing. This research is done within the
framework of the interactive design model of
my study Art and Technology that consists of
strategy and production in the fields of technology, experience and content. Additionally, we
are asked to focus on disruptive innovation
using the blue ocean strategy that is mainly used
to come up with practical solutions to problems
for small and middle-sized companies.

1.a)Blue innovation strategy

Small companies and start-ups follow the blue
ocean strategy (disruptive innovation) to create
new markets and products with new or
improved technology and features, first at low
performance level but very fast at the right level
for the mainstream of customers. (Mulder,
2015)

1.b) Results of the 360 information scan

Big Data
Big data is an overall-embracing collection of
data from digital networks which is used for
research with a big amount of variables. The
goal is to understand human society in an objective way and make predictions for behavior and
economy. (Pentland, 2014)

Marketing
Sustaining innovation comes from listening to
the needs of customers in the existing market
and creating products that satisfy their predicted
needs for the future. Predictive marketing is
based on technological innovation and data
mining through big companies like the Acxiom
Corperation that sells customer data to other
companies. (Goodman, 2004)
Data mining has become a standard practice for
commercial advertisers. They use it for sophisticated product placement and are able to target
their messages to individual consumers. (Goodman, 2004)
The brands that can move to that level, that
can create loyalty beyond reason, are going to
be the brands where premium profits lie.
(Kevin Roberts, CEO of Saatchi)

Branded entertainment

These markets are initially too small to 'be interesting' for large established firms which gives
smaller more dynamic firms and start-ups an
advantage of time to establish a niche brand.
Multiple failures, before identifying the true
markets for the new technology, asks for a plan
of actions. Internet companies have successfully
adopted to this strategy and the iterative
processes but many other industries are still
struggling with this concept. (Matt West
Media Developer, UK)

The predicted trend is to blend product advertisement seamless into entertainment where the
show itself becomes an extended ad. This deep
integration into television, movies and music
could result in a more homogeneous culture
because advertising desires for itself a background that will not contradict it.
Once a culture becomes advertisement
friendly, it ceases to be a culture at all.
(Goodman, 2004)

Developments
The most recent developments are that humans
aren't required anymore to input criteria on what
the analysis of data science problems are
judged. This is a critical step, called feature
engineering, where the researcher needs to come
up with many ideas to identify the variables to
be extracted from the database or compose. The
development is going towards algorithms (a set
of operations) that can decide and discover valuable patterns automatically. The Data Science
Machine generates candidate features for
instance total cost per order, average cost per
order or minimum costs per order on its own.
In the next step as numerical identifiers proliferate across tables, the Data Science Machine
layers operations on top of each other, finding
compounds like minima of averages, averages
of sums and more. It then generates further
feature candidates by dividing up existing
features across categories. (Hardesty, 2015)

Social physics
Social physics is an interesting applied science
behind big data which attends directly to human
behavior and where ideas come from. Its field of
research is indirectly connected to economy and
marketing. Social physics is on its surface similar to cognition science but focuses on the social
learning process which it sees as the most
important force behind habits and norms.
Social physics is inherently probabilistic with an
irreducible core of insecurity because it doesn't
account with the conscious human thinking in a
generative way.
The goal of social physics is to research collective intelligence and wants to improve how
human society functions. An important part of
this is to develop policies of how to use the data
that comes along with technological innovation.
(Pentland, 2014)

Cradle to cradle
Cradle to cradle is a model that declines linear
industry and the use of end-of-pipe methods.
Efficiency in modern industry doesn't sufficiently take into account that natural resources
are limited and is thereby quite destructive to
the environment. Economists know about these
disadvantages and bad effects on the long term,
but transition to an environmental-friendly
industry takes much time and effort. Additionally companies have to be efficient immediately
and produce as much as possible with the least
possible costs in order to be profitable and
survive on the competitive market.
According to the authors William McDonough
and Michael Braungart industry should become
more attached to its environment and try to
understand the complexity of nature and the
advantages that come with it. Instead of trying
to be less destructive by reducing what is bad,
the vision of cradle to cradle is to develop intelligent systems, inspired by nature and make use
of abundant resources. This is done by taking
into account the uniqueness of an ecosystem,
how industry can be a part of it and thus fit into
the total system (internalizing the externalities).
Like this it should even be possible to place
factories next to residential areas because they
aren't toxic anymore.
Essentially the model divides industry into two
segments: a biosphere and a technosphere that
are represented by the two main clusters of life
sciences and material sciences. The goal is to
design for reincarnation. In a circular economy
there are products in the biosphere that when
they die they become nutrients for the environment again and thus return where they came
from. In the technosphere products are more
seen as services (product-services) and need
to be returned to the seller who can professionally reuse the materials for new product-services
(think of smart phones for example).

For our common future and later generations to

have positive economic growth, industry collaboration will need to become more open and
transparent. Ultimately an integrity in eco-effectivity (cradle to cradle) will result in chains of
natural effects that will make our ecosystems
more diverse, stable and flexible at the same
time. (Braungart & McDonough, 2007)

1.c)Problem
Representatives of industry say that data-based
marketers use the consumer marketing data for
legitimate commercial practices. (Singer, 2012)
There is no evidence that data-driven marketing harms consumers in any way. (Ms.
Wooley, Direct Marketing Association)
However, privacy advocates say that
consumers cannot make informed decisions
about whether to share personal information
with companies without a more complete
picture of industry practices.
It is critical that we understand what information companies like yours are already collecting
and selling. (John D. Rockefeller, 2012, New
York Times)
Private companies such as banks can put
personal big data together with their data to get
a deeper and richer file than they originally
would have. (Swire, 2004)

Motivation
In a democratic society people are represented
by delegates who because they are more capable of seeing what is good for the nation are in
charge for government. (Fennema, 2012)
In the development of democracy and democratic societies the dilemma of freedom versus
equality will always stay a matter discussion.
Though all democratic politicians agree that
there should be an equality at the start. The
function of the government is to make this
possible by taking away any barriers. Freedom
means free access to education, to develop intellectually and economically which will also
benefit the equality of people in the end.
(Fennema, 2012)

Values

Transparency
Keep the channels of debate and engagement
open as the intergovernmental process moves
into its next phase
Dialogues, lessons learned and the collective
wisdom of people around the world,
Foster a broad sense of ownership (world is
from everyone), inclusive planning structures
and multi-stakeholder partnerships to support
its delivery

Research questions
Everything where an individual (in America)
has been involved at a public domain can be
in the computers of data brokers such as
Acxiom.
The principal of democracy yields to the practice of demography. (Goodman, 2004)
In America republicans and democrats have
been tailoring their messages to different demographic groups which could harden the partisanship because people don't have to deal with
confronting views anymore. (Swire, 2004)

Economically
Can branded entertainment advertisement be
dangerous?
How can I make contracts like General Terms
and Conditions (that almost nobody ever
reads) more accessible and easier to understand?
Beagle contract analysis
How can (personal) big data be valuable in a
market transition to a more circular economy
(cradle to cradle).

Politically
Who is governing the government?
How do citizens need to adopt their democratic attitude in an information driven society?

 What is a good persuasive design to change

perception about political participation and
voting
Free education (library)?

1.d) Evaluation
In the book from Trendslater (2015) in the chapter of Want it is stated that inequality is bad for
democracy and the people want more participation by law and social renewal / innovation. In
Silicon Valley a sharing-attitude is an essential
part of the culture. There are emerging more and
more social enterprises and organizations like
the Sociale innovatie netwerk Nederland
(Sinn) who have written a manifest about this
trend. New companies called game changers
such as Wakawaka work with the Buy-OneGive-One principle. Other game changers are:
Crowdspeak (moyee coffee) and Whocares.
In the chapter of Fight the marketing orientation
of these game changers which is trust and
loyalty becomes clear. They set new rules
such as purpose before profit. The goal is
more sustainability (less economic crashes). The
mission is to enable people to change how
global economy works. New keywords are
circular economy, big data, ecological footprint,
climate change, water- and energy resources,
biodiversity and health.
Customers want an open and honest relationship
with companies that strive for a maximal result
for the community. Nespresso for example
created Ecolaboration (lab = controlled situation) that is committed to reducing carbon emissions across the entire Nespresso business.
Other market insights in Want about are the
centralizing of the internet, privacy and that we
need to understand that everyone becomes a
director of media marketing of ones personal
brand.

Horizontal innovation
I'm inspired by personal big data and how
science of social physics (coined by Alex Pentland) tries to find relations between life sciences
and material sciences.
The convergence of globalization, changing
demographics, and urbanization is transforming almost every aspect of our lives. We face
new choices about where and how we work,
live, travel, communicate, and maintain health.
Ultimately, our societies are being transformed.
MIT Living Labs brings together interdisciplinary experts to develop, deploy, and test in
actual living environments new technologies
and strategies for design that respond to this
changing world. Our work spans in scale from
the personal to the urban, and addresses challenges related to health, energy, and creativity.
(livinglabs.mit.edu)
The framework of Living Labs goes through 4
steps:
1. Co-creation
2. Exploration
3. Experimentation
4. Evaluation
The diversity of the problems (between population, governments, institutions/organizations,
and economy) implicates input of the local society that can only be handled by a trusted multidisciplinary team. (manifest of social innovation
network Netherlands)

Organization theory
I think in the end it all comes down to nature.
In evolution theory different organisms in the
same habitat naturally find their niche or role in
an ecosystem. In wild nature this is happening
by selection and survival of the fittest. Organisms have different grades of adaption. Some
are highly specialized organisms that are more
effective at using the resources of the environment but are more vulnerable when the environment changes whereas less specialized organisms can also live in other ecological niches.
Animals with the same requirements to an
ecosystem live in competitive exclusion, that is,
one kind has to find other resources or the
different species find ways to share them or live
in an ever-changing environment that makes coexisting possible. (Australia, 2003)
Diversity is fundamental to the principles in
nature and the differentiation and competition
will result in morphological adoption (=social
evolution). (Australia, 2003) The same actually
applies to humans but we tend to change our
environment to our needs.
From a global perspective the world could be
imagined as one big ecosystem (the United
Nations) that is composed of distinctive organisms / organizations. A broadening of the understanding is done by improving the knowledge
about the interconnectivity of the organisms in
an ecosystem and by analyzing their strengths,
weaknesses, opportunities, threats and current
undergoing transitions.

Strengths & weaknesses

An organization (or organism) of a particular
nation must adapt to its environment. Over time
it has developed special characteristics and a
specific expertise that have proved themselves
in this ecosystem. Simultaneously this exposure
or determination causes weaknesses that must
either be compensated with a strength or with
the help of a suitable partner.

Opportunities & threats

The dominant tendency of thought is that decisions reached individually will, in fact, be the
best decisions for an entire society.
In economic affairs, The Wealth of Nations
(1776) popularized the "invisible hand," the
idea that an individual who "intends only his
own gain," is, as it were, "led by an invisible
hand to promote . . . the public interest"
When we let the market determine and treat
environmental amenities like any other good, it
comes down to whether people value them and
are willing to pay or if they are not willing to
pay, they won't be valued. With markets we also
have that one needs the ability to pay, meaning
that the poor get fewer environmental goods
than the rich. But public goods like environmental values and health are considered nonmarket goods (=priceless) unlike private ones.
(Hornstein, 2016)
Another problem is when people hesitate to
purchase public goods because of the free-ride
problem (positive externalities) which is why
public goods tend to be under-produced, even
when people need them. (Hornstein, 2016)
Humans usually grow up with a general feeling
of being frightened which causes the impression
one has to survive to live. In wild nature
even though more direct it's actually no different (survival of the fittest).
The following threats have been discovered:
1. A high level of specification is more effective
but makes you more vulnerable to a suddenly
changing environment.
2. The free-riding problem brings with it an attitude of doing 'nothing' because rationally
seen there is no benefit to helping others
without expecting something in return.
3. On the other side exploitation is something
that some people have no problem with.
A person (in its broadest sense) with a strategic better position because it has more means
than another, usually makes use of the implicated advantages it has.

 The Tragedy of the commons states that

technology alone isn't enough to solve the
dilemmas national powers encounter. It
describes the dilemma of common goods
through a growing population, acquisition
of energy (on condition that nuclear energy
is no option), pollution and the incommensurability of goods.
The compromise achieved depends on a
natural weighting of the values of the variables.
Summarizing, opportunities or chances are
created by niches and through dynamics of
inclusion and exclusion between the distinctive
organisms. Different organizations have different sets of strengths and weaknesses and can
therefore be valuable for each other through a
competitive exclusion.
Elinor Ostrom's reaction to the Tragedy of the
Commons is that the ability of people to organize themselves and that differences in culture
and believes as they can cause conflicts and
wars are at the same time the starting-points to
make concepts that enable us living peaceful
and healthy lives.

2. Methodologies
See the methodology document.

3. Conclusion
Natural balance?
Air Egg
Green Choice (produce your own energy)
Transparancy = (Digital) fingerprint, carbon
footprint, ecological blindness, affects the environment in order to optimize themselves from a
global point of view.
Could data tracking and self improvement be
used to feel more connected to your environment
Interconnectivity (Internet of things)
New opportunities, data driven society (information is money / power)

Sources
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B.V., Amsterdam / Ineke van den Elskamp, Schiedam, 2014
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Interview Peter Swire, PBS Frontline, 2004
retrieved from
http://www.pbs.org/wgbh/pages/frontline/shows/persuaders/interviews/swire.html
Singer, Natasha, 2012
Senator Opens Investigation of Data Brokers
retrieved from http://www.nytimes.com/2012/10/11/technology/senator-opens-investigationof-data-brokers.html
Acxiom Lets Consumers See Data It Collects
retrieved from http://www.nytimes.com/2013/09/05/technology/acxiom-lets-consumers-seedata-it-collects.html?_r=0
Hardesty, L. Automating big-data analysis 2015
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retrieved from http://science.sciencemag.org/content/162/3859/1243.full
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Scriptum, 2007
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retrieved from
http://livinglabs.mit.edu/index.php?option=com_content&view=article&id=51&Itemid=37
Hornstein, D. Introduction to Environmental Law and Policy 2016
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retrieved from
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