IntroductionThe following article discusses the rise of Business Intelligence and Analytics (BI&A) and its growing importance for businesses. Hal Varian, Chief Economist at Google and emeritus professor at the University of California commented: "So what's getting ubiquitous and cheap? Data. And what is complementary to data? Analysis."
The authors distinguish the following BI&A flavors:
- BI&A 1.0 - Database based and limited to structured content
- already integrated into commercial enterprise IT systems
- Web site design, product placement optimizations, customer transaction analysis, market structure analysis, product recommendations
- social media - companies treat the market as a "conversation" rather than traditional business-to-customer one way marketing
- handles data obtained from mobile phones and data, devices equipped with RFID, barcodes, and radio tags ("Internet of things"
- customization, location-aware, person-centered, and context-relevant operations
- E-Commerce and Market Intelligence
- long-tail marketing, serving millions of potential niche markets)
- market intelligence: Netflix Prize competition (algorithm to predict user movie ratings; $1 million price for the best algorithm)
- collaborative approaches
- big data analytics for analyzing data streams