Business Information Systems Report: Data Personalization and Strategy

This report delves into the significance of data personalization within business information systems, analyzing its characteristics and global impact. It explores the opportunities data personalization offers organizations, including conversion, trust-building, customer loyalty, and value capture, while also acknowledging challenges such as resource wastage, analytics discrepancies, and data collection issues. The report then examines a hybrid mobile application in the construction sector, detailing its performance objectives, value exchange through digital marketing, and proposals to cultivate positive customer sentiment using connected appliances and semantic web technology. It also discusses adherence to regulations like GDPR and the California Consumer Privacy Act. The reflection section provides recommendations and conclusions on the application of theory for business development.

Business information
systems
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Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
Characteristics and significance of Data personalisation:......................................................3
TASK 2............................................................................................................................................4
Organisation opportunities by use of Data personalization:...................................................4
TASK 3............................................................................................................................................6
a) Overview of business app...................................................................................................6
B) The value exchange:..........................................................................................................7
C) Proposals to build positive customer sentiment:...............................................................7
D) Proposal to follow present rules and regulations..............................................................7
E) Present business strategy...................................................................................................8
TASK 4............................................................................................................................................9
Reflection...............................................................................................................................9
Application of theory for business development:...................................................................9
Conclusion.....................................................................................................................................11
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Introduction
The changing nature of external environment has increase the requirement of consumer data
and personalization for the purpose of having creative marketing strategies in organisations. The
leading retailers and customer brands are strategizing for the purpose of having best security and
privacy of online data for the purpose of building protections across digital properties.
Personalisation at scale is where consumer brands and retailers are competing with each other to
capture value and for the preserving enabling protecting and accelerating of the digital efforts.
Present report is based on analysing the business information systems in context of a newly
developed application in the construction sector (Karwatzki and et. al 2017). For this there is
overview of the application, proposals to address the value exchange and for the builder positive
customers for the business.. Further there is an analysis of business strategy and the way
different proposals will contribute towards improving social economic and environmental
impact. Lastly there is reflection based on which there are development of recommendations and
conclusions.
TASK 1
Characteristics and significance of Data personalisation:
Organisations today are working towards having high personalization strategies where
consumer brands and retailers are competing to win. While competing with each other
organisations are working towards capturing higher customer value, where the main aspect is to
preserve, enable, protect the data that can help in ensuring personalization of various types of
consumer data.
Some of the Characteristics of Data personalisation is mentioned below:
Knowledge about customers: Data personalization is a technique that is based on understanding
the customers and delivering content at the right moment.
More specific: Data personalization is based on creating strategies as per specific needs of the
customers and then targeting them with the marketing efforts. It is based on technique of
collecting data and then using it for the purpose of having data driven personalization techniques.
Customer centric culture: Data driven personalization techniques are very helpful in creating a
customer centric approach. It helps in having a culture that put customer above the need of
organisation requirements.
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Global significance of data personalisation:
Achievement of competitive advantage: with fast changing external environment organisations
have to achieve higher competitive advantage (Nwankpaand Datta, 2017). Data-driven
techniques can help in development of personalization approach for customers that can lead
towards achieving a competitive advantage as compared to other similar brands.
Helps in engaging customers: Taking advantage of opportunity helps in engaging with
customers. It helps in planning to track the overall customer response. It leads to engaging of
customers for the purpose of building of loyalty to develop understanding with the customers.
Development of customer centric culture: It can strive the organisations towards a customer
centric approach. From leadership to other frontline employees it leads to building up of culture
that puts customer needs of the organisation.
Analysing customers: Organisations are working towards collecting customer data that can be
used as a streamlined process. It helps organisations in fixing the issues of data and dealing with
customer insight.
TASK 2
Organisation opportunities by use of Data personalization:
Data personalization is an approach that has completely transforms the way organisations
traditionally functioned. Presently there is use of personalization at scale that helps in
remarketing of the consumer Data collection process. But it is associated with several challenges
and opportunities that may arise in the course of using the techniques of data personalization.
Data personalization leads to development of several opportunities for organisation as
discussed below:
Conversion: It is primary opportunity for organisations (Milani, 2019). In this organisation can
use data personalization as a technique to convert individuals into customers.
Building trust: It helps in building up of trust between organisation and customers. For the
purpose of building long-term lasting business solutions it is necessary to build up required trust
with the customers.
Building customer loyalty: Digital and data personalization can be very helpful in building of
trust that leads to creating of higher customer loyalty. Organisations are looking for affordable
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web hosting services that can help in user engagement by setting up of customer support system.
Regular feedbacks taken from customer through data personalization can help in having higher
level of commitment.
Capturing higher value: Data personalization is an effective technique that can help in offering
higher value to customers. This technique is used for building about effective marketing structure
for enabling digital property transformation and remediation (ChaffeyEdmundson-Bird and
Hemphill, 2019). The marketing operations in organisation enable a digital property value
creation.
Dealing with risks: sometimes there are certain risks that are associated with use of customer
data. Taking up of a risk back approach can be very helpful for executive teams in organisations
to spend on privacy and security of the customers. Data personalization techniques are associated
with using effective information systems and asset maps for the purpose of business value chain.
It leads to elimination of risk that has a direct impact on enhancing present enterprise value
(Challenges:
Wastage of resources: Organisations poses limited resources and data personalization requires
lot of time and energy on part of present workforce. Data personalization requires high amount
of personal approach as humans that may not be possible by use of artificial intelligence. The
requirement of higher human interaction sometimes leads to deploying large amount of resources
that may be applied and utilised for other product functional areas. So it can be sometimes time
consuming and may not lead to higher organisational effectiveness 6 Personalization Challenges
Explained, 2020).
Analytics Discrepancies: Analytics is a part of digital marketing where there is collection and
interpretation of the available information (Manniniand Intille, 2018). Online available data is
usually based on categories and segments analytics is more than general and is a less
personalized approach. Organisations have to use customer data for the purpose of understanding
customers individually. Sometimes there are discrepancies where organisation is not able to
analyse the behaviour of each individual customer.
Data collection: Personalization is starting with presence of relevant data and information of the
target customer base. Data has to be highly credible with proper relevance, convenience, timing
and speed that can drive purchase visit and hire customer engagement. So it is an associated
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challenge for organisations as they may not possess abundance of quality data. In recent times
high quality of data is required for the purpose of having sustainable personalization strategies.
Organisation silos: In organisations, sometimes there are issues of data silos that may arise
because of higher complexity of data. Organisations have to work with diverse information
system, storage, CRM, third party systems for the purpose of meeting specific customer needs.
High fragmentation of data may also lead to difficulty in communication and merging across
applications.
It can be summarized from above made analysis that for marketers the harnessing power of
cutting as technology may lead to difficulty in engaging experiences with customers. The context
and meet of customer and prospects vary (Kraus and et. al 2018). Organisations must possess
clear vision of strategy for the purpose of building proper tech stack. These steps can enable to
execute an alliance and improve the marketing process across customer life cycle. Sometimes
providing seamless customer experiences can be a challenge in the application process of present
digital resources.
TASK 3
a) Overview of business app
Overview of the business app: There is a hybrid type mobile application developed in the
construction sector by the name home renovations (Shanahan, Tran and Taylor, 2019). It is an
online application that is offering different services related to renovation of homes by building
up of a direct connection between construction workers and customers through a platform of
national structure of supervisors and workers.
Performance objectives:
 Objective Of Home innovator is to be best innovator of small homes in London
constructive industry
 To be part of sustainable industry and renovator of homes
 To enhance the ratio of 15% profitability every year and decrease 10% operational cost
 To enhance the present customer retention level by 10% incoming next year
 To improve customer satisfaction level by 10% in the first year
 To develop a user customer database that is increasing 15% every year
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 To update the use of technological resources by 10% in next coming year
 To improve the present level of employee expertise by hundred percent
 Increasing the present level of employee retention rate by 10% in the first year.
B) The value exchange:
Value exchange and the overall value proceeds is in the form of mission visiting and the strategic
position of the business.
Personalization of data: Data personalisation technique will be used where the target segment
of customers will be approached by Digital marketing strategies. Various social media platforms
will be used for the purpose of identifying the present changing customer needs (Strycharz and
2019). Based on changing customer needs they will be approached by innovative and creative
approach. It includes social media campaigns on Instagram and facebook.
C) Proposals to build positive customer sentiment:
Business information development will be used as a tool for the purpose of building up positive
customer sentiments. There will be use of connected appliances for building up of common
network so that users can share the resources across FTP data service. The application of
different digital marketing technologies with the application of social media marketing platforms
will be adopted for the purpose of approaching customers. There is application of semantic web
3.0 for excellence productivity and speed of data quality. It is a tool that is used for the purpose
of arranging and structuring of the data.
Google chat platform has been enabled to stimulate the process of real and two way
communication channel between the present as well as prospective customer base. The main aim
of this platform is to enable a direct communication so that there is minimum level of staff
interaction taking place. The system will be very helpful in timely resolving of all the technical
or operational issues faced by the customers. The main aim of home renovations is to have a
proper system of communication management because they are acting as a middle source
between construction workers and customers.
This tool is going to help in developing a proper service provision for the objective of having
proper two way communication channel between the customers and the organisation.
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D) Proposal to follow present rules and regulations
Home renovations are working towards delivering a connection between the construction
workers and customers. There has been a tie up with kickstart government schemes for having
low cost availability of staff members. The tie up formed with the government has been very
helpful in development of a suitable brand image. The tie up with the government is one of the
effective strategies that can assist home renovations in having proper address to legal rules and
regulations (dos Santos, 2021). This scheme has been creating value for the brand as customer
trust is build up with the government involvement with the organisation.
Home renovation will be following all requirements of the California consumer privacy act. The
main intentions of the act is to make proper disclosures to the customers about the personal data
that is collected and customers have to be made proper disclosures about the use of personal data
which is being done by the business organisation. All the legal considerations that are part of this
act have been authored by home renovations while forming their digital marketing strategies .
GDPR: General data protection regulation is also followed and method that is a data protection
law related with controlling personal data of individuals across Europe. This approach is
properly followed and other to ensure that there is improvement in the data quality. In home
renovations this strategy is helping in having proper customer trust and following up of all
privacy regulations. It has led to complying of all the selected legal rules and regulations in
respect of legal considerations for proper data protection.
E) Present business strategy
The home renovation is an online application that is part of construction sector. The main
strategy is used by the organisation in present scenario for the purpose of contributing and
improving the social economic and environmental impact. Business information system will be
used as a tool to collect the relevant customer data and approached them in a unique way of
digital and social media marketing strategies. Various social media platforms like Facebook
LinkedIn, Instagram, Snapchat will be used in order to build up innovative strategies.
Social impact: For the purpose of increasing social impact customer trust will be building up by
offering excellent value to employee’s customers and broader distribution level.
Environment: organisation is having high quality products as there is proper sustainable
measures that are to be considered. There is optimum utilisation of present resources and all
safety hazards that are taken into consideration.
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Economic: The brand has formed and applied for government kick-start scheme that can help
young people who are losing their jobs and opportunities because of the covid-19 situation. It is
going to economically contribute towards reducing the present unemployment rate.
TASK 4
Reflection
From the overall made analysis it can be concluded that value exchange is one of the crucial
process for the success of any organisation. Data is the lifeblood of a business that can help in
achieving the required success. In the present report I understood the importance of developing
customer trust from the privacy paradox concept. Home renovation is a app in the construction
sector that is willing to develop a personalized customer relationship structure that can help in
boosting the required attractiveness of the business.
I developed the detail overview of data personalization and the role of business information
system in maintaining the required business positioning. With the changing time there have been
changes that have led to complete transformation of physical spaces to a complete digitised
world. It has led to creation of big zone of opportunity where are the implication of businesses is
very significant. I analyse the aspect of data privacy that was one of the major crucial aspects
while forming digital marketing strategies across online platforms. I have been able to
understand the importance of data personalization techniques in this highly dynamic world
where organisations are working towards using data as a source of generating higher competitive
advantage. This requires high amount of security and privacy of personalization. For this purpose
there is requirement to make proper address to various legal frameworks like GDPR and laws
like California consumer privacy act that is helping in protecting the privacy of customers.
Application of theory for business development:
Porters five forces analysis: Porter’s five forces analysis is based on analysing the major five
forces that are affecting the present business functioning of an organisation. It is based on
making a detailed evaluation of the way different forces that are part of external environment
affecting the organisation in a positive or negative manner. It may lead to generation of a threat
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or opportunity depending upon the prevailing circumstances of the organisation. In the present
situation of home renovation the organisation is part of construction sector that is having higher
opportunity in the coming time period because of changing external environment. The covid-19
impact has affected traditional and physical stores in form of reducing the business opportunities.
Competitive rivalry: Competitive rivalry defines the strategic relevance of a business
organisation as compared to other similar organisations functioning in the same industry. For
home renovations there are nine other similar organisations that are working as internet
application and web sites in the construction sector. The overall high quality value that is help in
effective customer approach of home innovations has led them to achievement of relevance
competitive advantage.
Bargaining power of customers: Bargaining power of customer is associated with the easy
availability of other different options for customers (Senyo, Liuand Effah, 2019). The present
digital marketing strategy will help home renovations in building up of a direct communication
channel with the customer. This approach is going to provide increasing attractiveness of the
business. The present personalised customer relationship structure is going to help in
maintaining the overall bargaining power of customers.
Threat of substitution: The other nine similar applications provide a very high threat of
substitution for home renovations. The use of business information system is a strategic approach
that can help in improving the present level of customer interaction. The implementation of
customer relationship management software can further help in dealing with the threat of
substitution. The ties formed with the government to provide low-cost job opportunities to the
present unemployed youth is also helping them in developing a strong competitive brand image.
Threat of New entrants: The changing nature of online applications and construction industry
has led to increasing the attractiveness of the sector. People are spending more time at home and
there is increasing requirement in the renovation sector. The covid-19 pandemic has also been a
significant factor of dynamism and use impact on the construction industry. It has led to a high
threat of new entrants for home renovations. This threat can be managed by having a unique and
innovative approach to build long-term connections with the customers by use of data
personalization techniques.
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Bargaining power of suppliers: home renovation is working to deliver a connection between
construction workers and customers. Construction workers are offered with competitive pay so
that they are able to maintain their situation in this covid-19 pandemic. This approach is helping
them in not shifting to other organisations that is leading to formation of long-term association
with the present workforce.
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Conclusion
From the above mentioned approaches it can be said that data personalization is effective
technique that can help in managing the online presence of business organisations. It is a tool
that helps in having techniques of developing brand loyalty on part of present customer base. The
application of CRM software and digital marketing technologies are assisting online business
applications to improve the customer experiences and satisfaction in their ease of decision
making process. The major key initiatives is to collaborate with tools and use better
communication mediums for quality assurance, tracking the quality metrics and collaborating
with customers with live chat support. The main objective of every new start-up is to enhance the
profitability and manage the cost. Use of data personalization techniques is one of the unique
ways of achieving this goal of maintaining overall business profitability.
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REFERENCES
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through<https://www.progress.com/blogs/6-personalization-challenges-explained>
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