Page 14 - CIMA MCS Workbook November 2018 - Day 2 Suggested Solutions

CIMA NOVEMBER 2018 – MANAGEMENT CASE STUDY

TASK 3 – BIG DATA
Suggested solution:

To: Finance Director
From: Finance Manager
Date: Today
Subject: Big data

There are several definitions of Big Data. It is generally thought of as large volumes of data which
are beyond the normal processing, storage and analysis capabilities of typical database
application tools.

The volume of data is one of the key characteristics of Big Data. There is now so much data
available from so many sources that it has become almost impossible to manage it, let alone
analyse it in a useful way.

For GRAPPLE they would have data on each product in their product range. This would include the
cost of the product, the sales of each product and any seasonality in the sales of the product. In
addition they would have data regarding customers for example, the number of customers in
each of the supermarkets of retail stores each day, the average purchase per customer, the
profile of their customers and the shopping preferences of their customers. They may also have
data regarding each store which could be shared with them by the supermarket chain. In total this
results in a large volume of data.

As well as the volume of data currently being produced, the other main characteristics of Big Data
are its velocity and variety.

Velocity refers to the speed at which data is now being generated. e.g. sources such as social
media sites are now generating data at virtually constant rates and current processing systems
are unable to cope with this flow and generate meaningful analysis.

Variety refers to the fact that data can now be generated and collected in a huge range of
formats, often unstructured which can present problems with its analysis and interpretation, for
example social media, text or audio. GRAPPLE will be able to collect data from stores, from
reviews on the internet, social media sources and from other sources e.g. customer surveys.

Benefits of Big Data

The use of Big Data is becoming vital for companies as it can help them find that competitive edge
or to serve their customers better by understanding their needs. Big Data allows companies to
draw on vast quantities of data to spot unusual trends and correlations allowing them develop
more effective strategies in less time.

GRAPPLE faces tough competition from the existing market players, in particular Party Pops and
Carnival who are much larger and have considerably more resources. They already have brand
legacies as a result of their advertising campaigns and will be one step ahead in the capture and
use of this data to further their competitive edge. In addition they will have online sales outlets

104 KAPLAN PUBLISHING