Computational Business Intelligence, Big Data, and Their Role in Business Decisions in the Age of the Internet of Things

Computational Business Intelligence, Big Data, and Their Role in Business Decisions in the Age of the Internet of Things

Javier Vidal-García (University of Valladolid, Spain), Marta Vidal (Complutense University of Madrid, Spain) and Rafael Hernandez Barros (Complutense University of Madrid, Spain)
Copyright: © 2017 |Pages: 20
DOI: 10.4018/978-1-5225-2104-4.ch013
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Abstract

The evolution of the big data and new techniques related to the processing and analysis of large databases is revolutionizing the management of companies in the age of the Internet of Things (IoT). In this chapter, we examine the possibilities of big data to improve the services offered by companies and the customer experience and increase the efficiency of these companies. Companies must accept the challenge of self-assessment and measure the barriers that threaten to prevent them from reaching to get the maximum potential derived from big data and analytics. The combination of big data and computational business intelligence will change completely processes, logistics and distribution strategies, the choice of marketing channels and any aspect of the production and marketing of products and services. A case of GE is presented to showcase the use of the IoT and big data. All companies, regardless of size or sector, will improve their business operations due to big data generated from the social media and IoT applications and its use in computational business intelligence.
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Background

Regardless of the fascination that arise the incredible figures of data that are constantly produced, big does not mean the same thing in a large organization, which can manage multiple petabytes, or in a small, where some terabytes can represent a problem of management.

Obviously the complexity and the needs change for the different sizes, but the opportunities for improvement are real in all companies. One of the most common examples to explain the advantages that the medium-sized companies can obtain from big data is a sales company online that is dedicated to a particular product (Barney, 1991). The navigation study that follows consumers and the activity carried out in social networks can give very useful information about the consumption habits of customers (actual and potential) and the brand image that has built between them, and layout, product range and marketing strategy which will be more successful.

But the information obtained through the analysis of big data is not only useful to understand customers; the internal functioning of organizations can also be optimized. Continuing the example of the small e-commerce company, the study of the data obtained from supplier relationships, from internal processes, etc. can highlight the problems of communication between departments, reduce the cost of purchasing department and optimize the distribution process (Purcell, 2013).

Actually the secret behind the Big data and computational business intelligence is not new. To find the causes of the weak and strong aspects of any business has always been an objective for companies and institutions, and organization of information has been one of the most accurate tools for that. The importance of big data lies in the enormous amount of information that we face nowadays. Although there is a higher difficulty of the analysis, there are also more opportunities to do so.

Internet and new technologies have created a technological revolution that is affecting our private and professional life, and big data and computational business intelligence is the trigger for the next stage, as far as industry and consumption refers (Mayer-Schönberger & Cukier, 2014). The recent rise of the IoT is accelerrating the creation of big data and the use of computational business intelligence.

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