What is data analytics, and why do companies gather user information?

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  • Everyone from online shopping sites to Netflix and news collects data to understand user behaviour and tailor their sites to consumers
  • Privacy is important, however, and it is essential that data not be misused
Doris Wai |
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Many companies collect and analyse data about their users. Photo: Shutterstock

What do online shopping, Netflix and healthcare have in common? They are all powered by data analytics.

This is a form of data science in which people make predictions by analysing and finding patterns in large amounts of real-time information.

Big data analytics is important to many businesses and groups because it helps them give customers more personalised services, though some have also misused this form of data science.

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E-commerce

The internet has made shopping easier than ever, and e-commerce giants like Amazon use big data analytics to improve their suggestions to customers.

For example, companies gather information about what customers are searching for online, where they live, and who they are. Then, their programs analyse the data to figure out what products they might be interested in. It can help online shops understand customer behaviour, such as what time of day they shop and how much they will buy.

Entertainment

Music apps, streaming platforms, audiobook services and podcast platforms also collect information about users by tracking their activity. This includes companies like Spotify, Disney+ and Netflix.

Data analysis helps entertainment companies understand what people are interested in and create recommendations for them. It helps streaming services get new ideas and decide if they should renew a show.

News and information

The news industry also relies on big data analytics, which can help them create and recommend stories that their readers want. One example is the news and entertainment site BuzzFeed, which is known for its viral content. Using data analytics, they identified popular stories and their unique characteristics to create similar articles.

Education

Data analytics can gain insight into student learning habits, preferences and performance. This information can come from sources such as pupils’ assessments and attendance records.

Once this data is collected, educators uncover trends in how their students are doing. This helps them design better courses that can address the needs of different learners.

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Data in healthcare

Medical professionals are using digitised records to collect data about patient health and identify trends. For example, researchers can find connections between certain medical conditions and people’s age or gender. This information can then be used to develop more effective treatment plans for specific populations.

Big data analytics can also help healthcare providers predict and prevent outbreaks of disease, while lifestyle data – such as people’s diet and exercise – can be used to identify potential health risks.

Potential for misuse

Despite the many benefits of data analytics, it is important to be aware that our data can be used against us.

Governments have used big data to monitor their citizens. Social media companies have been found to use data analytics in a way that led to mental health issues in teen girls and exposed users to outside groups that gathered their information without their knowledge. Games and apps often use data analytics to research the best ways to keep users addicted to their platforms.

We must keep in mind the importance of privacy and ethics to protect ourselves against the misuse of our information.

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