In this issue of the President's Letter, Frederica explores:
The Rise of Big Data & Analytics - How Will This Affect You?
President, JB Homer Associates
Amazon continues to be the biggest disruptor in the consumer markets industry today. Their recent acquisition of Whole Foods has created another segment within the industry to create even more disruption. I call it disruption within disruption. Now, we need to ask ourselves how this will benefit the consumer in terms of their customer experience and loyalty to the organization.
Making gut-decisions as a customer is still a part of the customer experience. Today, the customer is far more sophisticated in their tastes and emotional experience. The millennial especially opts for the Omni-Channel experience. Smart phones track consumer behavior through search browsing and purchasing. Marketers are targeting consumers in real time, and they are conscious of their price points and consumer shopping habits.
Microsoft, Google, and others are gathering as much data as possible without the consumer being aware of everything they search for on a daily basis. How can consumers find a way of knowing what is being collected and used? There are few options for removing data that has already been collected. The tools for examining, challenging, and removing data seem weak or nonexistent.
Amazon has also cast a wider net and may be looking to disrupt the healthcare industry. They could start by partnering with Pharmacy Benefits Managers who would act as intermediaries between healthcare insurers, payers, as well as the rest of the health system. This could serve as a vehicle to improve price transparency for the consumer; thus reducing out-of-pocket drug costs.
Using Echo, Amazon is rapidly changing business, as usual, by engaging in machine learning. Amazon Echo could end up becoming a Home Healthcare Assistant. Fast forward...the data will find its way from these systems and devices into electronic health records. Systems will become more dynamic, predicting diseases and showing transparency.
According to Accenture, however, one of the biggest tasks goes beyond integrating internal and external data into usable analytics. Corporations have to restructure internally. They even have to reshape their corporate culture to effectively capture these insights. Teams must have both data science and a creative capacity. They must also fit into an organizational structure that can respond to analytics with agility.
Omni-Channel is very expensive to operate for a variety of industries. Perhaps, Amazon as a premier source and conduit of e-commerce business has found a way to make their corporation a one-stop-shop for years to come.
How do you feel about Big Data and Analytics acquiring all of your personal information in exchange for a more convenient and emotional customer experience?