Info10013: Foundations of Business Systems and Ecommerce Assessment 1a: Reflective Essay
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Submitted By bzeng Words 859 Pages 4
Data is the raw facts and statistics collected during the operation of a business whereas Information is the data that is accurate, timely and interpreted and presented for a specific context (Swinburne Online 2014 Week 1). In a business context, this easily interpreted information allows the business to make informed decisions. Using the data to learn about the customers and their behaviours is a key factor to creating and building strong customer relationships and gaining a competitive advantage (Hillard 2010). Living in the information age, where an infinite number of facts are available to anyone with access to the Internet (Baltzan et al. 2010), it is imperative that a business model has a system in place to utilise all the data and information gathered from their customers to help expand their business. While many companies have found ways to collect data, it is data transformation; using the data to drive strategic change, that proves the most difficult (Hillard 2010).
Increasingly in today’s day and age, customers are demanding communication and highly personalised service. Amazon is an excellent example of a company that is instrumental in using its collected data in marketing itself as a more efficient and more effective business. Amazon’s mission statement is “to be Earth's most customer-centric company" (Amazon 2014), and progressing from a Web site that sold books to an e-commerce that sells nearly everything, they are doing just that. Asides from tracking customer information and purchase history, Amazon traces important information from a visitor’s “Wish List”. By monitoring what a customer is not necessarily buying but what they are interested in, Amazon has learnt to create personalised pages for each customer. When a customer visits the website they are greeted with a page full of items for sale according to their preferences (Loyalty 360, TSYS