It’s official: Big data is a big deal. Venture capital investments in big data companies continue to rise, and a handful of companies have clearly come out on top. Let’s take a look at some companies that continue to innovate with data.
Who’s winning the big data game?
Most people know that Uber is an ultra-convenient alternative to taxis, but not everyone is aware of how this company uses big data to optimize its operations. For example, the results of their data-crunching revealed that drivers can maximize their earnings by staying put rather than driving around looking to get close to potential customers. Uber also uses big data to enable “surge pricing”, where prices are adjusted in response to demand for rides.
This company takes advantage of data-mining tactics to deliver accurate recommendations. Foursquare analyzes social network data to figure out what an individual likes and dislikes, as well as who they’re with. They also use big data analysis to spot trends: For example, the company found that check-ins at ice cream shops rose by two percent for every two-degree increase in temperature. Combined with other machine-learning techniques, the company can make targeted suggestions to influencers who subsequently drive other customers to local businesses.
In its early days, this music-streaming service selected music for users based on usage-driven algorithms. This method didn’t deliver the most accurate results, so in 2014 Spotify acquired Echo Nest, a company that built an artificial intelligence specifically for music selection. Since these changes, the accuracy of Spotify’s selections has soared. The company also relies on big data from other sources, such as users’ Facebook updates, to narrow down its musical suggestions.
As mobile payments become more commonplace, credit card fraud has proven to be an increasingly serious problem. Feedzai is an innovative startup that leverages big data to sniff out fraud and halt it in real time. The company abandons traditional rules-based fraud detection in favor of an approach that fuses machine learning algorithms and big data mining software. Feedzai’s software analyzes consumers’ purchasing behavior and sends an alert if it detects unusual activity.
Although their technology may feel a bit intrusive to the average consumer, PlaceIQ is providing incredible value for marketers. The company makes use of location-based tracking information to let businesses know where their customers have been: It’s sort of a real-world version of using cookies to track online behavior. Paired with demographic data, PlaceIQ’s data analysis helps marketers gauge consumer response to ad placement and optimize their advertising campaigns.
These game-changing big data companies offer valuable lessons for any startup on harnessing the power of data. Before you can jump into the data game, it’s important to incorporate your business. Let the experts tackle this critical task: The incorporation specialists at Inc. Plan (USA) can handle the details and help you establish your business presence. Contact us today for your Free 30 minute consultation.