IT2113

Instructions/Reminders:
Read and analyze the items carefully, then evaluate how big data impacts their decision making and
strategy. Provide a short answer to the following items. (5 items x 10 points)

1. Netflix implements data analytics models to discover customer behavior and buying patterns. Then,
using this information it recommends movies and TV shows to their customers. That is, it analyzes the
customer’s choice and preferences and suggests shows and movies accordingly.

According to Netflix, around 75% of viewer activity is based on personalized recommendations. Netflix
generally collects data, which is enough to create a detailed profile of its subscribers or customers.
This profile helps them to know their customers better and in the growth of the business.

Answer:
So, what is Netflix's approach to data analytics? By collecting data from their 151 million
members and putting data analytics models in place to learn about customer behavior and
purchasing habits. Then, based on the preferences of their users, they recommend movies and TV
shows. According to Netflix, over 75% of viewer activity is based off personalized recommendations.
Netflix collects several data points to create a detailed profile on its subscribers. The profile is far
more detailed than the personas created through conventional marketing. Netflix even contains
images of scenes that viewers may have watched several times, as well as the rating given to the
content, the number of searches made, and what was searched for. Netflix may develop a complete
profile of its subscribers using these information. Netflix needs data analytics to collect all of this data
and turn it into useful knowledge. Netflix, for example, utilizes a recommendation algorithm to
recommend TV episodes and movies based on customer likes.
Netflix even leverages big data and analytics to create personalized marketing campaigns,
such as the one for 'House of Cards.' To promote the episode, Netflix cut ten distinct versions of a
trailer. You receive a trailer focusing on the female characters if you watch a lot of TV series about
women. However, if you watched a lot of David Finch-directed video, you would have seen a trailer
that concentrated on him. Netflix didn't have to spend a lot of time or money marketing the show
because they already knew how many people would be interested and what would entice them to
watch it.
In addition to collecting data on subscriber actions, Netflix also encourages feedback from its
subscribers. One feedback system is the thumbs up/thumbs down system that replaced their rating
system, the system improved audience engagement by a significant margin, which enabled them to
customize the user’s homepage further. According to Joris Evers, Director of Global
Communications, there are 33 million different versions of Netflix.

2. Google uses Big data to optimize and refine its core search and ad-serving algorithms. And Google
continually develops new products and services that have Big data algorithms.

Google optimized its search engine to collect the data from us as we browse the Web and show
suggestions according to our preferences and interests.

Answer:
Google is likely to be credited with introducing people to the advantages of studying and
interpreting Big Data in their daily lives. This illustrates how Google's business strategy is based on
Big Data. Google matches queries with potentially beneficial results using data from its Web index.
This is supplemented by data from reputable sources and other websites, which has been graded for
accuracy by machine-learning algorithms that evaluate data reliability.
Google made a fortune by figuring out how to monetize the data it collects from us while we
surf the web, amassing massive sums of money by becoming the world's largest supplier of online
advertising. Then they took use of the massive resources they had amassed to swiftly expand,
selecting growth areas such as mobile and the Internet of Things where they could apply their data-
driven business model.
 3. LinkedIn is mainly for professional networking. It generally uses Big data to develop product
offerings such as people you may know, who have viewed your profile, jobs you may be interested in,
and more.

LinkedIn uses complex algorithms, analyzes the profiles, and suggests opportunities according to
qualifications and interests. As the network grows moment by moment, LinkedIn’s rich trove of
information also grows more detailed and comprehensive.

Answer:
With more than 400 million profiles (122 million in US and 33 million in India) across 200+
countries, more than 100 million unique monthly visitors, 3 million company pages, 2 new members
joining the network every second, 5.7 billion professional searches in 2012,7600 full-time employees,
$780 million revenue as of Oct, 2015 and earnings of 78 cents per share (phew!) - LinkedIn is the
largest social network for professionals. People prefer to share their expertise and connect with like-
minded professionals to discuss various issues of interest in a platform like LinkedIn, as it allows
them to represent themselves formally in a less traditional manner. 2 or more people join LinkedIn’s
professional network every second, making up the pool of 400 million members. They could be
skilled professionals searching for a job or head-hunters looking for top talent.
LinkedIn is a massive social media site in terms of income and subscribers, as well as its
numerous data products. Every day, LinkedIn processes thousands of events. It keeps track of all of
the users' activities. For data engineers, data analysts, data scientists, and business professionals
who want a more in-depth understanding of the many interactions occurring in the social network,
Big Data is critical. Big data is used by data scientists and analysts to derive performance indicators
and important business insights that lead to lucrative marketing, sales, and other functional decision-
making.
LinkedIn's recommendation engine makes use of data to provide a variety of data products. A
detailed image of a member and her connections is built using data from user profiles and other
network activities. As you seek for your dream career, LinkedIn understands who you should
connect with, where you should apply for jobs, and how your abilities compare to those of your
peers.

3. Walmart is using Big data for analyzing the robust information flowing throughout its operations. Big
data helps to gain a real-time view of workflow across its pharmacy, distribution centers, and stores.

Big data is helping Walmart analyze the transportation route for a supply chain, optimizing the pricing,
and thus acting as a key to enhancing customer experiences.

Answer:
Walmart is a huge believer in big data, especially when it comes to improving customer service. The
volume of big data continues to expand, but Walmart is leveraging it to its advantage – and that of its
customers. According to a corporate blog, the discounter gained a real-time perspective of workflow
throughout its pharmacy, distribution hubs, retail, and e-commerce by analyzing the rich information
streaming throughout its operations. Clearly, Walmart has huge amounts of data at its fingertips –
and the resources to tackle all that data. But what any company can borrow from Walmart’s example
is their ability to react to data quickly. After all, there’s little point investing in data capabilities if your
internal setup doesn’t allow you to quickly make decisions and changes based on what the data is
telling you.

4. Uber is the first choice for people around the world when they think of moving people and making
deliveries. It uses the personal data of the user to closely monitor which features of the service are
mostly used, to analyze usage patterns, and to determine where the services should be more focused.

Uber focuses on the supply and demand of the services due to which the prices of the services
provided change. Therefore one of Uber’s biggest uses of data is surge pricing. For instance, if you
are running late for an appointment and you book a cab in a crowded place then you must be ready
to pay twice the amount.

Answer:
When it comes to moving people and making deliveries, few companies are more widespread
and more widely-recognized than Uber. Uber started out as UberCab, a black car -hailing service in
San Francisco. The fact that you could hail an UberCab from your smart phone, despite the fact that it
cost around 1.5 times as much as a typical cab, was a tremendous hit with customers, and other cities
were quickly added. Other businesses, such as a bike delivery service and food delivery, have also
been launched and tested in a few cities. Uber has a large database of drivers, so as soon as you
order a car, the Uber algorithm gets to work, matching you with the driver who is closest to you in 15
seconds or less. Uber stores data for every journey taken in the background, e ven if the driver has no
passengers. All of this information is saved and used to forecast supply and demand as well as
establish fares. Uber also examines how transportation is handled in different cities and attempts to
address congestion and other difficulties. Uber collects data on its drivers as well. Uber analyzes their
speed and acceleration, as well as checking to see whether they are working for a competitor, in
addition to gathering non-identifiable information on their car and location (such as L yft). Uber uses
your personal data in an anonymised and aggregated form to closely monitor which features of the
Service are used most, to analyze usage patterns and to determine where we should offer or focus our
Service. We may share this information with third parties for industry analysis and statistics.