ISSN No.

0976-5697

Volume 6, No. 1, Jan-Feb 2015

International Journal of Advanced Research in Computer Science
REVIEW ARTICLE
Available Online at www.ijarcs.info

Big Data: An Innovative way to Gain Competitive Advantage Through

Converting Data into Knowledge
Rashmi Bhadani

Dr. S. N. Kotkar

Assistant Professor (Visiting),

Prestige Institute of Management and Research
Indore, India

Associate Professor,
S.S.V.P.S Lt.Kr.Dr.P.R.Ghogry Science College,
Dhule, India

Abstract: Big Data has emerged as the new wave in the global market place. Big Data refers to the datasets whose storage capacity is beyond
the ability of traditional database software tools for capturing, storing, managing, and analyzing the unstructured data. Big Data has become
revolutionary technologies that help in enhancing organizations bottom line through converting data into knowledge. Early movers across the
sector has started using Big Data for analyzing consume behavior, predicting future business, enhancing customer loyalty, and gaining
competitive advantage among their peers. Thus, this paper aims to present concept of Big Data, illustrate competitive advantage derived from
using Big Data with the help of cases, and outlining barriers that are faced during implementation of Big Data. Big Data is still in its
evolutionary phase, so this paper will help scholar, academicians, entrepreneurs and others to gain insight about the concept.
Keywords: Big Data, Concept, Opportunities, Cases, Barriers.

I.

INTRODUCTION

With the advancement in the information technology field,

more and more organizations, individuals, as well as
government organizations are sharing and storing their data
digitally. This increased use of technology has led to
emergence of vast amount of data flowing across global
economy [1]. According to a survey conducted by McKinsey
(2013), the world is expected to come across 5 zettabytes of
new digitized data in the year 2014 and 35 zettabytes of data
till 2020. Thus, these unstructured data must be intelligently
analyzed in order to gain competitive advantage. This can be
done through the new phenomenon budding up Big Data.
Big data has emerged as the new wave in the global market
place. It has become revolutionary technologies that help in
enhancing organizations bottom line through converting data
into knowledge. Early movers across the sector has started
using Big Data for analyzing consume behavior, predicting
future business, enhancing customer loyalty, and gaining
competitive advantage among their peers.
II.

BIG DATA: CONCEPT

Earlier storing of large amount of data was not feasible for

the companies as it require huge investment on storage. With
the advent of cloud computing and other open-source
technologies, storing this vast amount of data became possible
as well as profitable. This vast pool of unstructured data has
been originated from cell phones, laptops, smart phones, social
networking sites, and others. Business leaders and analysts are
churning these unstructured data for gaining insights about
present and future trend of the business, or predicting consumer
behavior, and others.
Big Data refers to the datasets whose storage capacity
is beyond the ability of traditional database software tools for
capturing, storing, managing, and analyzing the unstructured
data. Big Data is characterized by basic elements as huge data
(Volume), fast Moving (Velocity), multi-structured (Variety),
and Value. Srirangpatna, Dialani, Muscolino (2014) defines big
data as a new generation discovery in the branch of information
2015-19, IJARCS All Rights Reserved

technology and architecture and that generates economic value

from diversified base of unstructured data through extracting,
apprehending, discovering, and analyzing it [2]. This includes
the hardware as well as software for integrating, organizing,
managing, analyzing, and presenting data, which is having four
Vs (Volume, Variety, Veracity, and Velocity) as its attribute.
Big data also refers to expectation from big data in terms of
MAD that means Magnetism (means ability to attract diverse
data irrespective of structure or schema), Agility (ability to
synchronize with continuous evolution of data), and Depth (a
deep system that supports data analysis) [3].
III.

ORGANIZATION CAPITALIZING BENEFITS FROM BIG

DATA

Vast pool of digitized data are generated in form of supply

chain related data, sales figures, customer data, performance
related data, data related to bank transactions, data posted on
social media, and others. Companies are realizing the strength
of this pool of data through transforming these raw data into
knowledge. Many companies across the world have started
capitalizing the benefits derived from Big Data. Some of the
examples of companies implementing Big Data are:
Walt Disney: Walt Disney is utilizing the benefits of
Big Data by collecting information related to business
operations, transactions, and customers from social
media, web repositories (including their own home
page), from sites of ABC and ESPN, and others.
Further, Disney used Hadoop and MapReduce for the
purpose of data mining that was not possible earlier.
This has enhanced experience of various stakeholders
of the company, like: internal groups, customers, and
business partners. Implementation of this new
technology has helped company to lower their cost as
well as time that was required in traditional business
intelligence (BI) system [4]. Disney theme park has
introduced band with RIFD chips for its guests. This
chip will collect information related to preferences of
the customers, personal information, and consumer
behavior. Thus will help the company to enhance their
customer experience through training their employees,
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Rashmi Bhadani et al, International Journal of Advanced Research in Computer Science, 6 (1), JanFeb, 2015,168-170

like explain expected behavior from them and that is

in-line with customer preferences.
Makemytrip.com make my trip is using big data to
enhance their customer experiences through offering
personalized service. Personalization plays significant
role in travel or leisure business as customers wants to
have personalized as well as authentic experience. Big
data helped them to gain competitive advantage
through enhancing their decision-making process,
enhanced product as well as service innovation, and
building strong relationship with customers [5].
Zillow the company has capitalized the benefits of
big by gaining scalability in their business. Data
helped them to think out of the box and also help them
to take more strategic decisions [6].
General Electric Co. (GE) GE has committed $1
billion for the purpose of data analytics and software
over 4 years. GE is has capitalize the Big Data
benefits in terms of industrial internet. This
industrial internet states that the company will store
torrent of data, which is be gathered through sensors
that is embedded in the GEs turbines, jet engines,
trains, and MRI equipments. Analyzing these data
will help the company as well as customer in
identifying and solving issues before they occur.
Further, it will help company in enhancing their
operation, improving their fuel efficiency, making
data useful to the customer through real time analysis,
optimization of machine, and taking intelligent
decisions [7]. This helps the company in improving its
efficiency, reducing cost, and enhanced bottom line.
IBM IBM has used Big Data for exponentially
improving its Constant-Contract-Performance. This
has led to enhanced performance by 15 to 25% of
their e-mail campaigns that are related to effective
implementation of their email strategy for their
customers.
UPS - the company uses big data for tracking data of
their 8.8 million customers every day. This requires
company to store 16 petabytes of data daily. The
company gathers their big data through telematics
sensors that are embedded in their 46000 vehicles.
Analyzing these data helps the company to effectively
monitor route structure, optimization of performance,
gaining fuel efficiency, and others.
IV.

Big data offers storing of huge data at lower price [9].

Helps in making quick and strategic decisions, and at
the same time effectively respond to the client queries
as well as complaints.
Enhanced customer experiences through offering
personalize products or services as per customers
demand, and using tailor made advertisements.
Further, big data foster real-time efficiency through
offering information related to product offerings,
availability, and others.
Helps in gaining enhanced financial incentives more
than sixty percent increase was seen in net margin of
U.S. retail. Further, annual productive growth rate was
reported to be between 0.5 to 1 percent.
Manufacturing sector enjoyed decreased working
capital by 7 percent.
V.

BIG DATA: BARRIERS

Big Data is still in its embryological phase and this is the

reason why it presents numerous challenges in its successful
implementation. Some of the major barriers while capitalizing
benefits of Big Data are:
Technological hurdles comparing or analyzing of
unstructured data with structured data is a crucial
challenge for the organizations. Further, lack of
suitable in-house software act as hurdle. In addition to
this, successful implementation of Big Data requires
organizational change, including transformation in the
legacy system. This may give rise to organizational
conflicts.
Validity of data this is the challenge related to
continuous need for filtering large datasets, for the
purpose of getting relevant data for analysis.
Talent crunch lack of technical skills in the existing
human capital of the organization. There is terrific
shortage of data analytics to support successful
implementation of Big Data [10]. Lack of suitable talent
with machine learning; knowledge of mathematical
expertise and quantitative analysis will act as barrier
in the successful implementation of Big Data.
Resistance towards sharing data there is crucial
issue of privacy violation with sharing of ones data.
There is continuous threat of losing data due to misuse
of data, hacking of confidential credentials, privacy
invasion, risk of data security, and others [11].

BIG DATA: OPPORTUNITIES

Successful implementation of big data will foster following

opportunities to the individuals as well as organizations:
Helps in retaining customer through analyzing data
generated from help desk, traffic patterns, social
media, customer reviews, and others. This will help
the company to predict prospective customers issues
and ensure that the problem does not arise in future.
Thus, taking this proactive step will ensure retaining
customers as well as attracting prospective customers.
Enhanced operational efficiency is gained through
predicting consumer behavior, prospective demand for
product or service, and future inventory requirement
based
on
predicted
demand.
Successful
implementation of big data will also help in
prevention of fraud and identification of risk [8].
Help companies to lower their cost as well as time that
were required in traditional business intelligence (BI)
system [4].
2015-19, IJARCS All Rights Reserved

VI.

DISCUSSION

Barriers or hurdles in the successful implementation of Big

Data technology can be eliminated or reduced through
following ways:
Developing organization culture organization
culture should be developed so as to support
effective implementation of big data. This requires
developing of organization culture that fosters
transparent communication system; motivate
employees to adopt new technologies without fear,
fostering innovation, and others.
Resolving technological barriers analyzing big
data requires implementation of various advance
execution technologies, data analyzing as well as
visualization tools and others. In addition to this,
hardwares are required to be purchased or
upgraded as per organizations IT (information
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Rashmi Bhadani et al, International Journal of Advanced Research in Computer Science, 6 (1), JanFeb, 2015,168-170

technology) department current capability as well

as future requirement. Thus, these infrastructural
techniques should be made available within the
organization that is leveraging big data
technologies. Further, technological hurdle that is
related to comparing unstructured data with
structured one can be removed through operational
technologies, like: NoSQL, Hadoop, PIG, Hive,
and others.
Resolving issues of skill gap human capital can
be trained to perform better data analysis job and
overcoming shortage of talent crunch. This
requires strong top management commitment as
well as designing the organization culture where
people are passionate towards exploring data as
well as converting them into knowledge.
Developing confidence among the big data users
- encryption can be used for building trust among
the users who resist sharing data [12].
VII. CONCLUSION

Thus, telecom, banking, retail, e-commerce, travel,

and insurance are the sectors that can capitalize from
implementing big data. This will help them to gain sustainable
competitive advantage across global market through enhancing
their product as well as service, increasing market share, better
customer experience, building strong customer relationship,
and increasing its triple bottom line.

[2]

[3]

[4]

[5]

[6]

[7]

[8]

[9]

[10]

[11]

VIII. REFERENCES
[12]
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The Economist, A special report on managing

information: Data, data everywhere, The Economist,
February 25, 2010.

2015-19, IJARCS All Rights Reserved

Srirangpatna Dinesh, Dialani Mukesh, and Muscolino

Holly, "The Big Data Analytics Services Opportunity for
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Disney
case
study
summarized
from
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from
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