Why Big Data Analytics is The Next Big Opportunity for Outsourcing Companies

By Harish Kotadia, Ph.D. | Published: January 8, 2012

Big Data Analytics is making big headlines these days. Just check out a few from recent past:

So what is Big Data and why it is in the news so much these days?

According to Philip Russom, Director of TDWI Research, Big Data has three defining attributes – three Vs as he calls them. They are Data Volume, Data Variety and Data Velocity and together they constitute a comprehensive definition of Big Data. So Big Data is not just about Data Volume, but also the variety of data (mostly unstructured) and the velocity with which the data is generated and need to be analyzed. (for more, check out following posts by Philip Russom and the TDWI Best Practices Report titled Big Data Analytics):

Given three Vs of Big Data, ‘traditional’ data storage, retrieval and analytics methodologies are no longer going to work. Cloud Computing is going to play a key role when it comes to Big Data Management and Analytics. And here in lies the opportunity for Outsourcing companies.

Traditionally, data collected by organizations is ‘safely’ stored in massive relational database accessible to only few within the organization and requires elaborate infrastructure both in terms of hardware and software for storage, retrieval and reporting/analytics. In such an environment, it is not possible to easily outsource Data Analytics function/processes alone given the heavy investments made in terms of hardware and software.

Because of the business requirement of analyzing vast amount of ever changing structured and unstructured Big Data almost instantaneously, companies will be hard pressed to do this on their own. But given the fact that Big Data stored in cloud can be accessed from anywhere the internet is available and can be analysed almost instantaneously by third party service providers,  outsourcing companies can offer to their clients value added services in the area of Big Data analytics without heavy investments on the part of clients in specialized hardware and software as was the case with ‘traditional’ data analytics. This will bring down significantly costs (especially fixed costs) associated with building and maintaining analytics infrastructure and solution center.

Just to give an example in the area of Social CRM, Social Media has empowered customers like never before as they can discuss about brands/products on Social Media channels. The best any marketer can do is to Listen, Learn and Engage customers. Given the three Vs of Big ‘Social’ data and the fact that most of the user generated content resides in the cloud, outsourcing companies can offer cost effective analytics solution to their clients to enable them effectively engage their customers/prospects in real time.

What do you think? Do you agree that Big Data Analytics is The Next Big Opportunity for Outsourcing Companies? Look forward to hearing your thoughts and comments:

3 New Year’s Resolutions that should be on Every CEOs List for 2012

By Harish Kotadia, Ph.D. | Published: December 30, 2011

“After Outcry, Verizon Abandons $2 Fee” screams a headline from today’s online edition of the New York Times. And the article makes it very clear that Social Media played no small role in telecom giant’s hasty retreat from levying a new $2 fee on bill payments. This story is a harbinger of things to come in 2012 and CEO and CMO of every large and medium sized company should pay attention to it.

As I explained in my previous post titled 2012: Year of Empowered and Assertive Digital Customer, thanks to Mobile, Tablet computing and Social Networking revolutions, customers are empowered like never before and they are leveraging technology not only for shopping online, but also for highlighting poor customer service experiences. This growing trend of empowered and assertive customers leveraging technology for connecting with other like minded individuals to share their experience about products and services will be the big story of 2012.

In order to make sure that 2012 doesn’t become a year of Social Media disasters or  Social CRM crises, CEOs and CMOs of large and medium sized companies should include following three new year resolutions on their 2012 list:

1. Improve collaboration within the enterprise and invest in collaboration tools

2. Listen to what customers/prospects are saying on Social Media channels and learn from it

3. Empower employees to engage customers/prospects on social media channels and invest in customer collaboration platform

How important are these to the survival and growth of business? In my opinion, these are as important as resolving to lose weight for someone who may suffer a heart attack if he/she doesn’t lose weight, or as important as bringing debt/expenses under control for someone who may face financial ruin or bankruptcy otherwise.

One may argue that these doesn’t apply to leading companies or brands that enjoy dominant position in their market. Well, think again. It doesn’t take long for assertive customers, empowered by social media to drive home their point of view. If you want proof, look no further than Netflix or GoDaddy in this regard. So as I said, better to lose weight than suffer a heart attack and better to control expenses/debt than face financial ruin.

Dear CEOs and CMOs, are you listening? Wouldn’t you include these three New Year’s resolutions to your 2012 list?

 

 

2012: Year of Empowered and Assertive Digital Customer

By Harish Kotadia, Ph.D. | Published: December 28, 2011

As 2011 comes to an end and as we look forward to celebrating New Year 2012, one thing that strikes most looking back is the massive increase in ownership and usage of Smartphones and Tablet computers.

Just consider following headlines in the last few days:

“On Christmas day alone, a total of 6.8 million iOS and Android devices got activated around the world, a 353% increase from Christmas 2010″ (for more, see this link)


“Consumers have spent a record $35 billion online shopping this holiday season” (for more, see this link)


“Apple’s iOS accounted for a whopping 13.4% of Online Sales on Christmas Day” (for more, see this link)


“According to a recent report, Facebook reached more than half of global audience in October 2011 and accounted for 1 in every 7 minutes spent online around the world and 3 in every 4 social networking minutes” (for more, see this link)

 

These are just a few headlines I came across during last few day of 2011. And they all points to the fact that thanks to Mobile, Tablet computing and Social Networking revolutions, customers are empowered like never before and they are leveraging technology not only for shopping online or scoring great bargains, but also for highlighting poor customer service experiences.

This growing trend of empowered and assertive customers leveraging technology for connecting with other like minded individuals to share their purchase intentions and experiences about products and services will be the big story of 2012.

Questions is how many companies are listening to customers, learning from it and engaging them? Not many. So if 2012 is going to be the year of Empowered and Assertive Digital Customer and if companies are not ready for it, we can also say that 2012 is going to be the year of Social Media disasters and Social CRM crises, and many companies will learn the Social CRM lesson hard way. And that will spur investment not only in Social CRM, but also Enterprise Collaboration Platforms, Mobile engagement platforms and Data Analytics.

What do you think? Do you agree that 2012 is going to be the year of Social Media disasters and Social CRM crises? Please do share your thoughts:

(Picture courtesy: Beautiful sunset in Dallas, Texas as seen from my apartment)

FedEx learns Social CRM lesson, the hard way!

By Harish Kotadia, Ph.D. | Published: December 22, 2011

Here’s an excellent example of the importance of responding to a Social Media crisis before it is too late. On December 19th, 2011, a YouTube user (username “goobie55″) uploaded video of a FedEx delivery person throwing a video monitor into his/her yard.

This YouTube video has created a Social Media storm of sorts and as I write this post, it has been viewed 3,576,412 times for this one YouTube post alone. I have seen it on my local TV news too here in Dallas, Texas.

Well, before it was too late (remember United Breaks Guitars YouTube video), FedEx  posted its own response to customer’s video with the following statement by Matthew Thornton III, Senior Vice President, US Operations, FedEx Express:

“Along with many of you, we’ve seen the video showing one of our couriers carelessly and improperly delivering a package the other day. As the leader of our pickup and delivery operations across America, I want you to know that I was upset, embarrassed, and very sorry for our customer’s poor experience. This goes directly against everything we have always taught our people and expect of them. It was just very disappointing.”

(YouTube video response by FedEx embedded below):

This incident of Social Media brand crisis underscores the importance of having a Social Media Crisis Management Plan. It should clearly highlight roles and responsibilities, procedure and protocols to be followed in the event of a brand crisis. Because the first step in solving any crisis is to identify and respond to it, and respond FAST when it comes to Social Media as FedEx seems to have done here. What do you think?

Why ‘Social’ will drive growth in 2012

By Harish Kotadia, Ph.D. | Published: December 21, 2011

Time flies! Here we are just a few days before Christmas and looking back at 2011, I cannot help but wonder at the amazing speed with which the year flew by! 2011 will be remembered for the effective role Social Media played in activist movements across the globe.

Looking at the future, one can see dark clouds on economic horizon given the debt and deficit crisis in Europe and North America. Consumer spending, which has driven economic growth for past several decades given easy availability of inexpensive credit, is drying up as consumers are reluctant to spend given the economic and political uncertainty. As a result, economic growth is almost 0% if not negative and with rising inflation, there is real risk of dreaded ‘stagflation‘ (economic stagnation with high inflation resulting in stubborn high unemployment).

In this scenario, companies are fighting hard for share of customers’ wallet/spend to meet their top line/revenue growth targets at the cost of bottom line/profits. As a proof of this, just note the amount of discounts large retailers and leading brands offered to customers this holiday season. And this is not just limited to budget brands for value conscious customers but also includes luxury brands  targeted at affluent customers.

So how can companies not only survive, but thrive in an economic environment characterized by stagnation, high unemployment, eroding purchasing power because of inflation and when customers are unwilling to spend because of economic uncertainty? In economic parlance, this is a perfect storm and it requires some out of the box thinking on the part of companies.

Companies need to use emerging technological tools such as Social Media, Mobile and Cloud computing to drive down cost of doing business and at the same time, maximize value delivered to customers. Remember, it is not about price of a product or service but value perceived by the customer and price he/she is willing to pay for the perceived value of the product or service.

As I highlighted in one of my previous post titled Why Industrial Era Marketing Won’t Work in the Age of Social Media, not involving customers during product/service creation and delivery, and very limited after-sale support via phone is not going to work any more. Companies need to use social media channels and collaborate with their customers at every step of product or service creation and delivery.

To survive and grow in the age of social media, companies will have to re-engineer their product design, manufacturing, delivery and support processes, and not just their marketing processes, in order to involve customers at every stage of product/service creation and delivery. Companies that succeed in involving customers at every step of product/service creation and delivery will thrive and grow in this tough economic climate.

My suggestion to senior executives is that instead of viewing this tough economic climate as a challenge or a problem to overcome, why not view it as an opportunity for change by re-engineering business processes to take advantage of emerging technological tools such as social media and involve or engage customers at every stage of product or service creation and delivery. It can be as simple as a factory manager posting a YouTube video on how the product is made or a hotel employee tweeting about new mattress in all rooms in the hotel. By engaging customers on Social Media channels, companies can win greater mind-share of customers and as we all know, mind-share results in purchase and greater share of the wallet!

And before I end my post, I want to wish readers of this blog Merry Christmas and Happy Holidays.

(Picture courtesy: The well lit Christmas tree that you see above is from my apartment in Dallas, Texas)

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  • About Dr. Harish Kotadia


  • Harish Kotadia, Ph.D.


  • Dr. Harish Kotadia has about ten years’ work experience as a hands-on CRM Program and Project Manager implementing CRM solutions for Fortune 500 clients in the US.

    He also has about five years’ work experience as a Research Executive in Marketing Research and Consulting industry working for leading MR organizations.

    Dr. Harish currently lives in Dallas, Texas, USA and works as Social CRM, CRM Consulting Lead for Infosys Technologies. Views and opinion expressed in this blog are his own.






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