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The Impact of Data Analytics On Business Decision Making

This project examines the impact of data analytics on business decision-making, highlighting its role in identifying trends, optimizing resources, and enhancing competitiveness. It discusses how companies like Amazon and Netflix utilize data analytics for personalized recommendations and content strategy, significantly influencing their revenue and customer engagement. The project emphasizes the importance of ethical data use to ensure privacy and fairness in decision-making.

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30 views8 pages

The Impact of Data Analytics On Business Decision Making

This project examines the impact of data analytics on business decision-making, highlighting its role in identifying trends, optimizing resources, and enhancing competitiveness. It discusses how companies like Amazon and Netflix utilize data analytics for personalized recommendations and content strategy, significantly influencing their revenue and customer engagement. The project emphasizes the importance of ethical data use to ensure privacy and fairness in decision-making.

Uploaded by

sanchezoemmanuel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PROJECT C1 LEVEL

THE IMPACT OF DATA


ANALYTICS ON
BUSINESS DECISION
MAKING

Emmanuel Sánchez Ossa


Topic Definition
5M

4M

This project will explore how data


3M
analytics allows organizations to
2M
make informed decisions, based on
trends and patterns identified from
1M
10 20 30 40 50
large data volumes.
DATA ANALYTICS
Justification
In today's business context, data analytics has proven to be an essential
tool for transforming data into useful knowledge that guides strategic
decision making. This project will examine how the analysis of large
volumes of data can identify hidden patterns, predict future trends and
optimize resources, promoting more informed decisions. Recent cases
demonstrate its positive impact on competitiveness, operational efficiency
and risk management, highlighting its importance as a driver of innovation
and competitive advantage.

0
1 2 3 4 5 6 7
Previous Knowledge

Analytics uses descriptive approaches to understand


what has happened, predictive to anticipate future
scenarios and prescriptive to suggest concrete actions
based on the data. Its application not only optimizes
resources and improves operational efficiency, but
also has a direct impact on business strategy and
customer satisfaction (Davenport, 2013). It is
important that its use is carried out under an ethical
framework that guarantees data privacy and security,
as well as fairness in decision making, ensuring that
the benefits are both business and social (European
Union, 2016).
Data Gathering
Amazon uses descriptive analysis tools to understand consumer
behavior and predict their requirements, which enables them to
step up their inventory and personalize shopping experience.

Personalized Product Recommendations: Amazon uses


predictive analytics to deliver personalized recommendations to
customers. By analyzing customers’ past purchases, search
history, and preferences, Amazon predicts products that users
might want to buy. This increases customer engagement and
conversion rates significantly. As a result, approximately 35% of
Amazon's total revenue comes from these personalized
recommendations​.
Netflix uses Big Data by personalizing user experience, analyzing their
preferences and behaviors on the platform to recommend content more
accurately. The company uses predictives techniques as well , such as
predicting the success of a program, based on viewing history and early user
reactions.

Content Production and Acquisition Strategy: Netflix uses data analytics to


guide its decisions on content production and acquisition. By analyzing viewing
patterns, Netflix identifies the types of content that are most popular with different
demographic groups. This data-driven approach allows Netflix to invest in content
that has a higher probability of success, such as "House of Cards" and "Stranger
Things," both of which were major hits influenced by viewer data​.
35% 80%
Generates approximately the of the content consumed on Netflix
of its revenues from personalized comes from personalized
recommendations. recommendations.

It is estimated that 75%


of what customers Users spend 1.5 times more time
purchase on Amazon comes from data- KEY FACTS viewing recommended content
driven recommendations (sources such than content they explicitly choose.
as Amazon Metrics and other e-
commerce statistics).

Data analysis predicts that


Invests more than $1.5 billion series like “Stranger Things”
annually in its logistics and “House of Cards”
network and data analysis to increased subscriptions by
optimize inventory. 25% since their release.
References
Cadwalladr, C., & Graham-Harrison, E. (2018). The business of data: impact on the
economy and regulation. Quotes Repository. Recovered from
repositorio.comillas.edu.
Deloitte. (2017). The estimated value of the data economy in Europe. COTEC report.
European Union. (2016). General Data Protection Regulation (GDPR): Adapting
Europe to the Digital Age. EU Digital Policies.
Davenport, T.H. (2013). Analytics at work: Smarter decisions, better results. Harvard
Business Press.
HEY. (2021). Data analytics, one of the strongest digital trends that companies should
consider in 2022. Retrieved from https://www.ey.com.
The Role of Big Data in Netflix's Success. (2023). DataCentric. Recovered from
https://www.datacentric.es.

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