Big Data Analytics in the Automobile Industry, Research paper

This is a project I did while at Northeastern University during my digital marketing class. My team and I focused our research project on Big data analytics and its impact on the Automobile Industry. We came up with recommendations for Ford, in regards to what we believe was the best way for them to implement big data at the core of their business model.

Introduction to Big Data

The emergence of new technologies like mobile, tablets, cloud computing, and social

media has inundated companies with massive amounts of data daily. This phenomenon is

referred to as Big Data and is now addressed in many key business areas such as product

development, research, gaming, supply chain management, and marketing. The volume of data

flowing through the Internet and information technology is not the only concern when it comes

to Big Data, marketers must also pay attention to the various types of data being created such as

pictures, videos, text, GPS signals, Point of Sale data, and more (McAfee and Brynjolfsson,

2012). Additionally, the velocity at which the data is generated is of interest as it allows for real-

time information and decision-making.

Although Big Data is complex and difficult to address, the value added to the decision-

making process is undeniable. Companies that take advantage of the phenomenon and use it

effectively can increase profits 5 to 6% over their competitors (McKinsey & Company, Forbes,

Nov. 17, 2014). For marketers, this varied data in real-time is advantageous when it comes to

product design, selecting target markets, and planning overall marketing strategy. If successful,

implementing Big Data practices around marketing activities can increase marketing ROI

between 15 and 20% (McKinsey & Company).

1. Key Research Question

How can an automotive company like Ford leverage Big Data to provide a

comprehensive customer view and implement this into their marketing strategy?

2. How Ford Can Benefit From Big Data

Big Data and Analytics offers the opportunity for a company such as Ford to leverage the

information constantly flowing into their systems. Real-time analysis of this data will provide

more information regarding the performance of their automobiles and how customers use them.

Information from products with other data from social media, the Ford website, dealerships, and

other channels can provide Ford with the ability to know exactly what their target customers

want and need from products. With real-time information and a constructed view of their

customers, Ford can respond to issues faster, make their products and service more reliable, and

provide an enjoyable customer experience. Ford will enjoy the rewards of Big Data Analytics

proven to be true: 5-6% increase in profits, a 20% increase in the ROI of marketing investments,

and a greater market share (McKinsey & Company).