BIG DATA IN PRACTICE DIRECT QUOTES FROM SOURCE: RAINER, KELLY, PRINCE, BRAD AND WATSON, HUGH, MANAGEMENT INFORMATION SYSTEMS: MOVING BUSINESS FORWARD, JOHN WILLEY & SONS, INC.: NEW JERSEY, 3RD EDITION, 2015 (FROM CHAPTER 3)

Organizations must manage Big Data and gain value from it. There are several ways to do this. 1.Making Big Data Available. 2.Micro-Segmentation of Customers 3.Creating New Business Models PUTTING BIG DATA TO USE

Making Big Data available for relevant stakeholders can help organizations gain value. For example, consider open data in the public sector. Open data is accessible public data that individuals and organizations can use to create new businesses and solve complex problems. In particular, government agencies gather very large amounts of data, some of which is Big Data. Making that data available can provide economic benefits. Some 500 examples of U.S.-based companies whose business models depend on analyzing open government data. MAKING BIG DATA AVAILABLE

For Example, Paytronix Systems( provides loyalty and rewards program software for thousands of different restaurants. Paytronix gathers restaurant guest data from a variety of sources beyond loyalty and gift programs, including social media. Paytronix analyzes this Big Data to help its restaurant clients micro- segment their guests. Restaurant managers are now able to more precisely customize their loyalty and gift programs. In doing so, the managers are nothing improved performance in their restaurants in terms of profitability and customer satisfaction. MICRO-SEGMENTATION OF CUSTOMERS

Companies are able to use Big Data to create new business models. For example, a commercial transportation company operated a large fleet of large, lone-haul trucks. The company recently placed sensors on all is trucks. These sensors wirelessly communicate large amounts of information to the company, a process called telematics. The sensors collect data on vehicle maintenance. By analyzing this Big data, the transportation company was able to improve the condition of its trucks through near-real-time analysis that proactively suggested preventive maintenance. In addition, the company was able to improve the driving skills of its operators by analyzing their driving styles. The transportation company then made its Big Data available to its insurance carrier. Using this data, the insurance carrier performed risk analysis on driver behavior and the condition of the trucks, resulting in a more precise assessment. The insurance carrier offered the transportation company a new pricing model that lowered the transportation company’s premiums by 10 percent. CREATING NEW BUSINESS MODELS