Chapter 4: Research Results
4.2 Cross-case Analysis - Benefits Created from Big Data
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4.2 Cross-case Analysis - Benefits Created from Big Data
In chapter two, this study identified possible benefits that may be generated from Big Data. To prove that the possible benefits really exist after financial companies applied Big Data technologies, this study analyzed and compared the results across the four cases in this section. Following are the findings of the cross-case analysis.
4.2.1 Informational Benefits
Enabled Faster or Easier Access to Information in Some Studied Cases
After cross-case analysis, this study found out that Big Data enabled a faster or easier access to decision-making related information in some studied cases, but not in all studied cases. For example, as noted earlier, the dynamic map platform helped the decision maker of company A to access the information they needed much faster and much easier while deciding where to set automatic teller machine (ATM). However, in the case of company B, accessing information did not become faster and easier after implementing Big Data technology.
Improving the Quality or Accuracy of Information in All Studied Cases
For the aspect of improving the quality or accuracy of information, Big Data helped company A improved the accuracy of predicting customers’ willingness to open emails.
Company C mined hidden rules from Big Data to make the customer risk score more accurate and further improved decision-making. In the case of company D, Big Data successfully helped them improving the information quality and accuracy. For instance, by applying Big Data technology, they found out that mid-age customers used financial service on their mobile phone more frequently than young customers did. Moreover, by applying Big Data technology, company B could take all available variables into consideration, which eliminated the impact of selecting variables based on experience and prejudices by human, and successfully decreased the type I error & type II error of loan approval rates, even though the results of Big Data analysis were usually difficult to explain. As the opinion of the chief technology officer of company D, Big Data let decision-makers make decision based on scientific basis, but not only based on experience.
Did Not Help Studied Cases to Provide Information in More Useable Formats Comparing the four cases, this research found out that Big Data did not significantly helped companies to provide information in more useable formats. According to the opinion of the senior IT manager of company D, there was little relations between the formats of information and Big Data, but it was more related to the visualization tools.
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To conclude, a comparison of the results reveals that Big Data significantly improved the quality or accuracy of information across all studied cases. However, the improvements of information accessibility were not significant in all studied cases, and the impacts on information formats were very insignificant in each case.
4.2.2 Transactional Benefits
Successfully Helped All Study Targets to Save Costs
This study found out that Big Data successfully helped all study targets saved costs.
As mentioned previously, the digital intensive intelligent system of company A saved 75% of marketing cost, and the online loan platform of company A saved a lots of labor costs. In the case of company B, applying Big Data technology helped the company saved costs by really solving the problems for the company rather than purchasing solutions from external companies. Furthermore, Big Data helped company C shortened their underwriting time and help the company saved many marketing cost.
Finally, Big Data also saved many costs for company D in the field of marketing and risk controlling.
Brought Business Progress and Progress in Financial Return for All Studied Cases Comparing across the four cases, Big Data brought progress in marketing for all studied cases. In detail, Big Data helped the companies to cross-sell across in all subsidiaries, conduct precision or personalized marketing, and develop potential customers. These improvements significantly increased the response rate, attraction rate, and apply rate, etc., which resulted in the growth on financial return and business in the long term.
Somehow Enhanced the Productivity or Efficiency of All Studied Cases
It is worth noted that Big Data somehow enhanced the productivity or efficiency of all studied cases. As described previously, the efficiency of calculating loan quoted price of company A had improved dramatically, and the efficiency of many business processes of company D had improved. In the cases of company B and company C, the combination of Big Data technology and artificial intelligence (AI) technology helped the companies to conduct automate analysis or further conduct automate decision-making, which generated great positive effects on productivity and efficiency.
This research found out that the transactional benefits in company B were not as obvious as other cases because the implementation of Big Data technology of company
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B was not as fully developed as other cases. However, from the discussion above, it can still be seen that Big Data successfully generated many types of transactional benefits across the four cases in financial industries, such as cost saving, revenue increasing, business growing, efficiency improving, and so on.
4.2.3 Strategic Benefits
Improving Partnerships or Relationships with External Companies
Big Data helped most of the studied cases to improve the partnerships or relationships with other external companies significantly. For example, many companies, such as e-commerce businesses and IT integration corporations, cooperated with company A for the Big Data analysis capabilities and precision marketing ability of company A.
Similarly, company D created many cooperation chances with other companies, such as person-to-person (P2P) lending businesses, mobile payment businesses, and some start-up retailers, due to their capability of Big Data analysis and the credit-scoring ability. In the case of company B, they also increased the cooperation chances with companies in other industries, and collected many valuable cross-industry data. Besides, this research found out that all studied companies increased the cooperating chance with external support teams who excelled in Big Data technology. However, except for cooperating with external technical support team, the business cooperation chance was not improved after company C applied Big Data technology.
Enabled a Faster Response to Changes in All Studied Cases
This study found out that Big Data enabled a faster response to changes in all studied cases, especially the changes of market demand. However, the improvement was not very significant in company A.
All Studied Cases Improved Customer Relations and Customer Segmentation All cases researched by this study improved their customer relations and segmentation after applying Big Data technology. For example, company A issued a credit card for customers who loves coffee; company D understood customers’ life cycle more completely and designed special digital experience journey for customers;
and company B also significantly improved the ability to identify and segment customer.
Moreover, as mentioned earlier, company C improved the understanding of customers’
demands and characteristics, and segmented their customers into nine main groups.
Provide Better or Innovative Products, Services, or Business Models
Comparing all studied cases, this research found out that Big Data helped all studied
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companies to provide better or innovative products, services, or business models. For instance, Big Data enabled company A to provide the online real-time loan quoted price-calculating service, and the results of Big Data analysis had become the base of innovating products and services in company D. In the cases of company B and company C, the integration of Big Data and artificial intelligence (AI) enabled them to develop and provide many innovative services.
Helped Some Studied Cases to Align Analytics with Business Strategy
This research also found out that Big Data helped some studied cases aligning analytics with business strategy. For example, after applying Big Data technology, the data analysis team of company A cooperated more closely with their business teams, and they discussed more frequently with business teams for how to support them with Big Data technology. Another example of company C was that their sales colleagues could sell products more based on the results of Big Data analysis. However, the improvements of aligning analytics with business strategy were not so significant in company B and company D. For company B, there were still some challenges to well align Big Data analysis and business strategies, because business teams usually suffered much pressure on business performance, and not very willing to accept the changes brought about Big Data technologies. Different from company B, the improvements were not obvious because that company D’s business teams already collaborated very well with their analytics team before the company introduced Big Data technology.
Helped All Studied Cases to Create Competitive Advantages
After comparing the four results, it can be seen that Big Data helped all of the studied cases to create competitive advantages. Big Data improved the user experience of company C and company D. According to the opinion of the chief technology officer of company D, Big Data became one of the most important competitive weapon, which is as important as other key competitive advantages for financial companies, such as brand, number of branches, capital, credit, and so on.
As discussed above, this study found out that Big Data do generate strategic benefits for the studied companies, even though some benefits were not significant in every cases, such as improving the partnerships or relationships with other external companies, enabling a faster response to changes, and aligning analytics with business strategy. However, it is obviously to find out that the strategic benefits were significant in most studied cases.
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Table 4-2 Summary of Benefits Created from Big Data (V – Very Significant; O – Significant)
Company A Company B Company C Company D Informational Benefits
Enabling a faster or easier access to information for
relations and segmentation
V