Page 15 - CIMA MCS Workbook November 2018 - Day 2 Suggested Solutions

SUGGESTED SOLUTIONS

and will be collecting data on a daily basis. It is essential that GRAPPLE have access to the same
sort of data for their future planning.

It is important for GRAPPLE to be able to analyse exactly who its customers and perhaps more
importantly the end consumers are and what these consumers want. If it can understand these
factors it can gain competitive advantage over the other manufacturers and can ensure that
customers will choose GRAPPLE. All of this data is available but needs to be carefully analysed.

If GRAPPLE can understand its customers’ needs fully then it will be able to provide the range of
products its customers want. GRAPPLE is enjoying growing revenue and growing profit but is also
facing growing competitive threat as a result of the socio‐ cultural changes in the market place as
consumers become more health conscious.

Knowing what customers want and how and where they want to shop will help GRAPPLE develop
its business for the future. If it can do this better than the competition then it will gain
competitive advantage and therefore help it to continue to grow the business and save
unnecessary expenditure on developing products that are not attractive to consumers.

Analysing Big Data will also give GRAPPLE an understanding of external (e.g. social and economic)
factors which is crucial to its ongoing business success. In the soft drinks industry, an
understanding of customer preferences and social trends is vital to future success.

In addition this data will assist GRAPPLE in furthering its innovation in sustainable packaging and
enhance its “green credentials (key factors for success), improve its decision making and market
segmentation.

GRAPPLE can monitor data from our production equipment to determine usage and wear, to
assist in prediction of the optimal replacement cycle. This may be an important factor for
GRAPPLE given the need to refine production processes and machinery in a drive toward
improved efficiency.

Issues to consider when using Big Data

The analysis of Big Data can bring many benefits but to undertake this analysis requires
appropriate systems and skills. With the exception of the Sales and Marketing Director, it is
unclear if these exist within GRAPPLE at this time.

Given the nature of Big Data, the systems required to undertake the analysis and the skills
required will need to be continually updated which will require an ongoing investment in
recruitment and training and the ongoing enhancement and support of existing and new IT
systems. It would have to be ensured that the benefits from Big Data could be realised in order to
justify this investment.

Given the volume and velocity of Big Data attempts to gather and make use of it opens up issues
regarding security of data. This is a major concern for all organisations involved in harnessing Big
Data, particularly with the recent proposals from the Zedland data protection regulations
initiative. Appropriate knowledge and resources will be required in order to ensure the security of
the data and to protect not only the data but also individuals and organisation. To avoid this risk
of loss of data, proper controls will have to be put in place and GRAPPLE does not currently have

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