Understanding IBM’s big analytics bet



Posted By Jon Scharf

I thought this was an excellent article highlighting some of the topics we have discussed in class about a more personalized social networking experience. IBM is working towards helping firms reintroduce the way in which they cater to their consumers via social media. It should be exciting to see this technology implemented to give us users of social media a more personalized, value added experience.

 IBM has invested $14 billion in an acquisition of analytics focused companies because they feel going forward traditional market research will be a thing of the past. Heads of marketing departments will be overwhelmed by the data that will be sourced from social media and the new environments that have not even been thought of yet. The problem that IBM is trying to solve ahead of time is how companies are supposed to look at consumers/clients are individuals opposed to market segments. Just like these firms will have more access to information so will the consumer. The information overload flattens the playing field and forces companies to appeal in a different way to consumers.

 IBM is expecting to develop the tools that make marketing to consumer a value added experience opposed to throwing all including the kitchen sink against the wall and see what sticks. Data mining the information that adds sales is the goal and to get to that point marketing on a personalized basis is needed. The ultimate issue is how to fine tune the data mining of consumer history and attract sales to end users by appealing to their individual tastes.



2 thoughts on “Understanding IBM’s big analytics bet

  1. It’s great to see a company finally have a strategy on how to make money with social media beyond the “broadcast” idea. The key is in the name; social implies conversation. The only way to do that is to learn who it is you are talking to.

    I’m curious to see what services and systems IBM will be producing with this plan in mind. It’s not like IBM clients are small publishing companies looking for a boost in Twitter followers; they deal with Fortune 500 companies. I often wonder what the real value of social media tools is to companies that produce Super Bowl commercials. It’s not like they don’t have the awareness already. Sometimes opening yourself up to the public can be more trouble than it’s worth. Still, it will be interesting to see if IBM just starts producing web/business metric journals to subscribers, or if they truly live up to the title of International Business Machines and design systems for their clients.

  2. It is good to see that CMOs want more information about the consumer. Consumers are their main concern and if they can find ways to better serve them than they need that information. Usually CMOs only have market research but now consumers are willingly giving their information so companies can make products and services better. It is great that IBM is doint this and sees social media as the future of analytics.

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