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McKinsey research suggests how “big data” affects design

By | October 17, 2011, 8:29 AM PDT

Companies and other organizations are gathering large amounts of real-time information about people’s everyday habits and preferences, provided by purchase transactions, sensors in machines, and the usage of smart phones and other devices.  ”Big data” is the catch phrase often used to refer to the growing, and sometimes overwhelming, stream of statistics gathered as a result.

Smart corporations are using this constant influx of information to improve the design of their products, stores, services, and offices. How? Some clues can be found in a new article published by the McKinsey Quarterly titled  “Are You Ready for the Era of Big Data?” (Note: registration is required to read the article online.)

The article doesn’t focus on big data’s effect on design–it’s a much more general piece–but there are numerous references to be found that relate the two, based on research conducted by McKinsey and Company’s management consultants.

These include:

-  In some stores, McDonald’s tracks customer traffic and ordering patterns, as well as interactions between staff and customers; researchers then can analyze this data and improve restaurant design

- Human resource departments in some companies are “changing work conditions” (as in redesigning offices) to encourage better productivity and worker satisfaction, based on employee data

- Designers and engineers are creating more products — “from copiers to jet engines”–that track their usage patterns. The goal is to help identify successful design elements an gain insight that could be used to create next-generation devices

- A new industry will likely arise that provides not only big-data analysis, but also plays the role of an intermediary between manufacturers and other companies to do so and provide insight as a service (This McKinsey prediction suggests there could be business opportunities for designers to provide corporate identity and branding, user interface design for software, and other related services, to these new data-related companies.)

The streams of consumer and other data that will be generated within the next decade are likely to keep growing — as well as a need for analysts. By 2018, McKinsey predicts, 140,000-190,000 additional data-analysts may be required in the United States alone to keep up with the rate of information generation in this country. McKinsey also suggests there will also be a need for 1.5 million managers and highly trained data specialists who can steer how data can best be applied.

Designers and innovation consultants would be wise to consider how companies, organizations, and governments in the “era of big data” could hire them to help interpret huge–and ever-rising–amounts of information being collected today…and in the near future.

Photo: Melvin Schlubman/Flickr

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Reena Jana

About Reena Jana

Reena Jana is a contributing editor for SmartPlanet.

Reena Jana

Reena Jana

Contributing Editor, Design

Reena Jana has written for the New York Times, Wired, Harvard Business Review online, Fast Company, Architectural Record, Artforum, Time Out New York, Harper's Bazaar, and GQ. Previously, she was the innovation department editor at BusinessWeek. She holds degrees from Columbia University and Barnard College.

Follow her on Twitter.

Reena Jana

Reena Jana

Reena occasionally consults with companies, and when her writing discusses a corporation or other organization with which she has worked, she will disclose this fact. Reena does not hold any investments in the companies she covers.

She writes for SmartPlanet and is not an employee of CBS.

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+1 Vote
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Analytic Data Not Just for Marketing
It is exciting to see the growing role of data in refining how any business can better serve its audience.

We have always used feedback from test groups to refine product in interactive games development and marketing where behavior is so core to success. Today's connected hardware and content allows us to benefit from data in near real-time if we know where and how to look at it.

I used to be concerned that creativity would be stifled by data analysis but I've found that the limits/structure set by data can work as catalyst to innovation.

I think creative leadership beyond the "crowd-sourced" information is necessary to determine how to bring "heart and soul" into the mix. We still need a human filter, but it is encouraging to see technology enabling change for the better.
Posted by @fredsko
17th Oct
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Big data
I get very nervous when there is a proposal to use information technology to 'improve' some aspects of social interaction. 'Improve' suggests there is a dimension along which some property of social interactions can be measured, and further suggests that moving along that dimension in some given direction results in 'improvement'. While this is clearly true in some cases, it might not be so true in others, and fredsko's 'human filter' is a very, very necessary part of the entire process. I do not believe it is (yet) possible to construct algorithms that successfully duplicate or 'improve on' human wisdom or even common sense. If a data collection system does that, and makes arguably moral judgments about some aspect of the data it analyses which later lead to harm to humans - whose fault is it? Do we get to the point that AIs become legal entities subject to social law? They're arguing about just such issues right now. So in the meantime, let's tread warily - that's the precautionary principle at work.
Posted by tony.maine@...
18th Oct
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