CIMA E1 Syllabus E2. Marketing - Big data analytics - Notes ^{5 / 5}

Data analytics is the process of collecting, organising and analysing large sets of data (big data) to discover patterns and other information which an organisation can use to inform future decisions. 

For e.g. It can be used by an online streaming platform to analyse a viewer's previous searches and viewing history to recommend their next watch based on what they might enjoy.

OR it can be used by a large company to interpret data and find out the reason for recent decline in its performance.

Data analytics relies on digital information. 

Big data and data analytics has resulted in finance professionals increasingly occupying a business partnering role acting as an interface between data specialists such as data scientists and the business by making data relevant and commercial.

Big data analytics includes:

1. Data mining - It involves analysing data to identify patterns and correlations

2. Predictive analytics - It involves data mining to predict future events

3. Text analytics - It involves scanning and processing text to extract useful information.

4. Voice analytics - It involves scanning and processing audio to extract useful information.

5. Statistical analytics - It is used to identify trends, correlations and changes in behaviour.

Features/Advantages of big data analytics:

1. Improves segmentation - Big data analytics enables organisations to create highly specific segments within its markets.

2. Increased customisation - Enables greater focus on individual customers. There is greater opportunity for personalisation of products for customers.

3. Targeting - With ,ore specific segments and customization, a business to target specific group of customers.

4. Product / service development - The data can help businesses understand what the customers like or do not like about their product. This helps with development of better products.

5. Feedback - Easier collection of feedback provides new insights for companies to improve how they operate.

6. Provides more accurate and timely information to key stakeholders.

7. Improves business performance measurement in combining financial and non-financial data.

Mobile technology allows decision makers to access information wherever they are, provided they have a phone signal.