This article begins with
comments made by the president of Oracle, Mark Hurd. He states Big Data
spending is growing at a rate of 40% annually, which accounts for 10% of the IT
budget. Hurd believes the emergence of social media is a major cause for
the increase in demand for using large amounts of data in supply chain
applications. Hurd spoke with a Director of Supply Chain Planning for a
major international brand about how they now use social media, and mobile
promotions, to control the balance of supply and demand. He discovered
they sell perishable items, so a highly responsive supply chain is needed. To
achieve this goal, they have a network of national warehouses serving regional
warehouses with nightly deliveries based on the most recent demand data. Control of supply and demand is maintained by stocking regional warehouses
with what will be promoted the coming week via social media and mobile
promotions in the region. This company uses their social media presence
to develop and launch successful new products based on customer feedback. The company is able to fund this operation by selling at greater profit
margins due to brand recognition. It would be more difficult for a small
and lesser known company to achieve such success in this way, as they would not
have the same money or resources at their command; however, the concept could
be something to adapt into their current practices.
Social media is the new
go-to department in every company. Everyone you know has a Facebook, Twitter or
even a LinkedIn profile. Companies have learned this is an essential piece of
their customer’s daily lives and have expanded their teams to specifically
reach out to them. However, many companies are still in the early days of
employment for social media related positions and most are way behind in trying
to analyze this social media data. “We have millions of tweets about our
brands, thousands of Facebook “likes,” hundreds of thousands of check-ins on
Foursquare. Pinterest and Instagram are adding even more to social-media data
deluge.” This all amounts to the “Big Data” that companies have to now try and
keep up with. “Big data” refers to a companies growing ability to collect large
amounts of information, analyze it instantly, and draw sometimes profoundly
surprising conclusions from it. However, do these companies fully understand
what all this data is? Companies need to train people to make sense of this
data. In order to make sense of this data, companies will need to hire data
analysts who specialize in making use of the overwhelming amount of new data
created every day. “You will need
a strong database person to put the data into forms that can be analyzed. You
also will need statisticians who can understand the data and its impact. You
must have people adept at understanding behavioral data. The data we are
receiving from social media is vastly different from the static, transactional
data we had previously gathered. It is unstructured, fluid, mobile and often
contradictory.”
Data analysts can help
improve the bottom line of any organization by forecasting how to either
increase revenues, save money, or mitigate risk. For example, the company that
sells perishable items has to operate daily deliveries of their items to retail
outlets. A data analyst may be able to optimize the routes of the delivery
trucks based on inventory and projected demand. Thanks to the advanced
inventory systems and analysis tools offered by companies such as Oracle, the
supply chain can be optimized to greater detail than ever before.
http://www.forbes.com/sites/stevebanker/2014/02/10/president-of-oracle-speaks-on-big-data-at-oracle-supply-chain-conference/
http://www.forbes.com/sites/onmarketing/2012/06/28/social-media-and-the-big-data-explosion/
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