What is Netflix Big Data Data Analytics

Big data in practice

For a number of years now, companies have been reporting more and more about big data. The big question that should be asked here, however, is: are these all just empty words? Is there a hype about Big Data that cannot actually be served in this way? In order to get to the bottom of these questions, this article shows some of the world's best-known companies which have been using Big Data for years and what effects this has on companies.

Big data in practice: UPS

UPS, a company that has been collecting a wide variety of information since the 1980s. Parcel movements and transactions were already recorded and saved at this point. Today UPS tracks up to 16.3 million packages daily for more than 8.8 million customers. In total, the company has over 16 petabytes of data about customers, parcels or vehicles.

Most of the big data comes from vehicles. Over 46,000 vehicles worldwide are equipped with telematics sensors. These sensors record all data relating to the movement and location of the vehicle. Speed, acceleration, location and break times are just a few of the many data. The greatest advantage that is made possible by the use of big data is the real-time route optimization. Since the use of the ORION (On-Road Integrated Optimization and Navigation) project, which uses online map data, more than 8.4 million gallons of fuel have been saved between 2011 and 2013. This enormous number is due to the routes that are optimized every day. UPS has announced that they estimate that just one mile saved per driver each day can save up to $ 30 million a day. [1]

Big data in practice: United Healthcare

Another great example of big data application is United Healthcare. In the past, this organization had problems processing and analyzing data from telephone calls. Today, however, the calls are converted into text form and analyzed as a result. Customer satisfaction plays a decisive role for United Healthcare. In order to measure this satisfaction, we use "natural language processing" software. With the help of the software, the texts can be examined for certain expressions that express dissatisfaction. Based on the dissatisfaction, countermeasures such as e-mails or calls can now be taken to get to the bottom of the problem.

With the help of big data, their own offers can be tailored to the customers and problems can be solved. United Healthcare thus increases customer loyalty and satisfaction enormously. [2]

Big Data in Practice: Bank of America

With over $ 2.2 trillion in assets and over 50 million customers, Bank of America was a big data company as early as 2012. For some time now, they have also focused on the use of that data. Big data is divided into 3 categories. Transactional data, customer data and unstructured data, with the main focus on the first two categories.

With the help of big data, the wishes of the customers should be identified and suitable offers created. To implement this, for example, transactions are used to identify which of the customers has a credit card or a mortgage loan. If that customer now communicates with Bank of America in any form, i.e. by phone call, email or direct contact at the bank, special offers are made for this customer. Furthermore, the individual channels can also communicate with one another. For example, if a customer runs an application online but does not quit, calls, emails or invitations can be sent to support the customer. However, these are just a few uses. In addition, as at United Healthcare, customer satisfaction and wishes are examined by means of analyzes of websites or call centers. [3]

Big data in practice: Schneider National

As one of America's largest logistics companies, Schneider National has been using Big Data in practice for several years. Similar to UPS, sensors are also installed in trucks here. These measure the location, the driving behavior, the load of the truck and the level of the tank. With the help of the sensors that measure the tank level, Schneider has started to optimize the tank cycle. This means that in addition to the fuel level, data such as the destination, the next gas station or the fuel prices at the gas stations along the way are included in the analysis. Based on this data, the optimal time to refuel can be calculated and a lot of costs can be saved.

In addition to saving costs, driver safety also plays an important role. With the help of sensors, data such as hard braking is recorded and sent to the headquarters. With the help of additional sensor data and analyzes, it can be recognized which driver represents a particularly high risk in road traffic. Actions, such as driver safety training, can thus be offered as a preventive measure. This not only saves the company long-term costs, but also increases driver safety. [4]

Big data in practice: Netflix

Even the largest streaming service of our time uses big data in practice. As mentioned in previous articles, Netflix uses the data of each customer to recommend similar, and probably also liked, films and series based on the films and series they have already watched. This alone ensures that Netflix builds strong customer loyalty.

In addition, Netflix analyzes the global habits of the audience. An example of this would be films starring Adam Sandler. Despite the fact that the actor is not very popular in the US and UK, Netflix has commissioned four more Adam Sandler films. This comes about because, based on the analysis of the viewing habits of Netflix users, Latin American viewers like to watch Adam Sandler. [5]

Big data in practice: Starbucks

As one, if not the largest café chain in the world, Starbucks also makes use of big data. During a stay in a big city you will often see that several Starbucks branches are in close proximity to each other. Starbucks uses Big Data to recognize the potential of a future location for a new branch. Factors included here are, for example, the location itself, the traffic, the demographics around the location, customer behavior and of course neighboring companies. By analyzing these and other factors, Starbucks can assess the potential for success before opening a store and make decisions accordingly. [6]

These are just a few of the many companies that use Big Data to optimize their business. Some other companies are:

  • Amazon: Using customer data for better advertising and customer satisfaction
  • American Express: Analysis and preview of customer behavior
  • General Electric: Use of sensor data from gas turbines and jet engines à Development of tools and optimization for increased efficiency of the machines [7]

Many of these companies have seized the opportunity to leverage big data in practice. With the help of big data, they were able to improve companies that have already grown very large and significantly and stimulate further growth.

This would also clarify the initial questions. The use of Big Data in practice is not just a hype that only exists on the Internet. It ensures that companies can develop further and generate knowledge that would have remained hidden without big data.


[1] Cf. Davenport, Thomas H .; Dyché, Jill (05.2013): “Big Data in Companies”, at: https://docs.media.bitpipe.com/io_10x/io_102267/item_725049/Big-Data-in-Big-Companies.pdf (30.12.2018) .

[2] Cf. ibid.

[3] Cf. ibid.

[4] Cf. ibid.

[5] O'Neill, Eleanor (23.09.2016): “10 companies that are using big data”, at: https://www.icas.com/ca-today-news/10-companies-using-big- data (December 30, 2018).

[6] Cf. ibid.

[7] Cf. ibid.

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