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Focus on Innovation

Marketing and Big Data

Franz Klotsche, 304475@student.saxion.nl Academy Creative Technology, Saxion hogeschool Enschede Research coach: Johannes de Boer

Bezorgdheid, Mediathek concept mapping, judging, visual and media literacy, philosophy, core and boundaries, privacy. Cases, relations, causes (variables), eliminate problem,


Verschil tussen wie ik ben en hoe bijvoorbeeld google mij ziet

Of andere big data services

de-Centralizing of the internet

Verschil tussen wie ik ben en hoe bijvoorbeeld google mij ziet Of andere big data services

1. Introduction

The creative industry and technology is rapidly changing. This research is done within the framework of the interactive design model of my study Art and Technology that consists of strategy and production in the fields of technol- ogy, experience and content. Additionally, we are asked to focus on disruptive innovation using the blue ocean strategy that is mainly used to come up with practical solutions to problems for small and middle-sized companies.

1.a)Blue innovation strategy

Small companies and start-ups follow the blue ocean strategy (disruptive innovation) to create new markets and products with new or improved technology and features, first at low performance level but very fast at the right level for the mainstream of customers. (Mulder,


right level for the mainstream of customers. (Mulder, 2015) These markets are initially too small to

These markets are initially too small to 'be inter- esting' for large established firms which gives smaller more dynamic firms and start-ups an advantage of time to establish a niche brand. Multiple failures, before identifying the true markets for the new technology, asks for a plan of actions. Internet companies have successfully adopted to this strategy and the iterative processes but many other industries are still struggling with this concept. (Matt West – Media Developer, UK)

1.b) Results of the 360 infor- mation scan

Big Data

Big data is an overall-embracing collection of data from digital networks which is used for research with a big amount of variables. The goal is to understand human society in an objec- tive way and make predictions for behavior and economy. (Pentland, 2014)


Sustaining innovation comes from listening to the needs of customers in the existing market and creating products that satisfy their predicted needs for the future. Predictive marketing is based on technological innovation and data mining through big companies like the Acxiom Corperation that sells customer data to other companies. (Goodman, 2004)

Data mining has become a standard practice for commercial advertisers. They use it for sophisti- cated product placement and are able to target their messages to individual consumers. (Good- man, 2004)

“The brands that can move to that level, that can create loyalty beyond reason, are going to be the brands where premium profits lie.” (Kevin Roberts, CEO of Saatchi)

Branded entertainment

The predicted trend is to blend product adver- tisement seamless into entertainment where the show itself becomes an extended ad. This deep integration into television, movies and music could result in a more homogeneous culture because advertising desires for itself a back- ground that will not contradict it.

“Once a culture becomes advertisement friendly, it ceases to be a culture at all.”

(Goodman, 2004)


The most recent developments are that humans aren't required anymore to input criteria on what the analysis of data science problems are judged. This is a critical step, called feature engineering, where the researcher needs to come up with many ideas to identify the variables to be extracted from the database or compose. The development is going towards algorithms (a set of operations) that can decide and discover valu- able patterns automatically. The Data Science Machine generates candidate features – for instance total cost per order, average cost per order or minimum costs per order – on its own. In the next step as numerical identifiers prolifer- ate across tables, the Data Science Machine layers operations on top of each other, finding compounds like minima of averages, averages of sums and more. It then generates further feature candidates by dividing up existing features across categories. (Hardesty, 2015)

Social physics

Social physics is an interesting applied science behind big data which attends directly to human behavior and where ideas come from. Its field of research is indirectly connected to economy and marketing. Social physics is on its surface simi- lar to cognition science but focuses on the social learning process which it sees as the most important force behind habits and norms.

Social physics is inherently probabilistic with an irreducible core of insecurity because it doesn't account with the conscious human thinking in a generative way.

The goal of social physics is to research collec- tive intelligence and wants to improve how human society functions. An important part of this is to develop policies of how to use the data that comes along with technological innovation. (Pentland, 2014)

Cradle to cradle

Cradle to cradle is a model that declines linear industry and the use of end-of-pipe methods. Efficiency in modern industry doesn't suffi- ciently take into account that natural resources are limited and is thereby quite destructive to the environment. Economists know about these disadvantages and bad effects on the long term, but transition to an environmental-friendly industry takes much time and effort. Addition- ally companies have to be efficient immediately and produce as much as possible with the least possible costs in order to be profitable and survive on the competitive market.

According to the authors William McDonough and Michael Braungart industry should become more attached to its environment and try to understand the complexity of nature and the advantages that come with it. Instead of trying to be less destructive by reducing what is bad, the vision of cradle to cradle is to develop intel- ligent systems, inspired by nature and make use of abundant resources. This is done by taking into account the uniqueness of an ecosystem, how industry can be a part of it and thus fit into the total system (internalizing the externalities). Like this it should even be possible to place factories next to residential areas because they aren't toxic anymore.

Essentially the model divides industry into two segments: a biosphere and a technosphere that are represented by the two main clusters of life sciences and material sciences. The goal is to design for reincarnation. In a circular economy there are products in the biosphere that when they “die” they become nutrients for the envi- ronment again and thus return where they came from. In the technosphere products are more seen as services (“product-services”) and need to be returned to the seller who can profession- ally reuse the materials for new product-services (think of smart phones for example).

For our common future and later generations to have positive economic growth, industry collab- oration will need to become more open and transparent. Ultimately an integrity in eco-effec- tivity (cradle to cradle) will result in chains of natural effects that will make our ecosystems more diverse, stable and flexible at the same time. (Braungart & McDonough, 2007)


Representatives of industry say that data-based marketers use the consumer marketing data for legitimate commercial practices. (Singer, 2012)

“There is no evidence that data-driven market- ing harms consumers in any way.” (Ms. Wooley, Direct Marketing Association)

However, privacy advocates say that consumers cannot make informed decisions about whether to share personal information with companies without a more complete picture of industry practices.

“It is critical that we understand what informa- tion companies like yours are already collecting and selling.” (John D. Rockefeller, 2012, New York Times)

Private companies such as banks can put personal big data together with their data to get a deeper and richer file than they originally would have. (Swire, 2004)


In a democratic society people are represented by delegates who – because they are more capa- ble of seeing what is good for the nation – are in charge for government. (Fennema, 2012)

In the development of democracy and demo- cratic societies the dilemma of freedom versus equality will always stay a matter discussion. Though all democratic politicians agree that there should be an “equality at the start”. The function of the government is to make this possible by taking away any barriers. Freedom means free access to education, to develop intel- lectually and economically which will also benefit the equality of people in the end. (Fennema, 2012)



Keep the channels of debate and engagement open as the intergovernmental process moves into its next phase

Dialogues, lessons learned and the collective wisdom of people around the world,

Foster a broad sense of ownership (world is from everyone), inclusive planning structures and multi-stakeholder partnerships to support its delivery

Research questions

Everything – where an individual (in America) has been involved at a public domain – can be in the computers of data brokers such as Acxiom.

“The principal of democracy yields to the prac- tice of demography.” (Goodman, 2004)

In America republicans and democrats have been tailoring their messages to different demo- graphic groups which could harden the partisan- ship because people don't have to deal with confronting views anymore. (Swire, 2004)


Can branded entertainment advertisement be dangerous?

How can I make contracts like General Terms and Conditions (that almost nobody ever reads) more accessible and easier to under- stand?

Beagle contract analysis

How can (personal) big data be valuable in a market transition to a more circular economy (cradle to cradle).


Who is governing the government?

How do citizens need to adopt their demo- cratic attitude in an information driven soci- ety?

What is a good persuasive design to change perception about political participation and voting

Free education (library)?

1.d) Evaluation

In the book from Trendslater (2015) in the chap- ter of Want it is stated that inequality is bad for democracy and the people want more participa- tion by law and social renewal / innovation. In Silicon Valley a sharing-attitude is an essential part of the culture. There are emerging more and more social enterprises and organizations like the “Sociale innovatie netwerk Nederland” (Sinn) who have written a manifest about this trend. New companies called game changers such as Wakawaka work with the Buy-One- Give-One principle. Other game changers are:

Crowdspeak (moyee coffee) and Whocares.

In the chapter of Fight the marketing orientation of these game changers – which is trust and loyalty – becomes clear. They set new rules such as “purpose before profit”. The goal is more sustainability (less economic crashes). The mission is to enable people to change how global economy works. New keywords are circular economy, big data, ecological footprint, climate change, water- and energy resources, biodiversity and health.

Customers want an open and honest relationship with companies that strive for a maximal result for the community. Nespresso for example created Ecolaboration (lab = controlled situa- tion) that is committed to reducing carbon emis- sions across the entire Nespresso business.

Other market insights in Want about are the centralizing of the internet, privacy and that we need to understand that everyone becomes a “director of media marketing” of ones personal brand.

Horizontal innovation

I'm inspired by personal big data and how science of social physics (coined by Alex Pent- land) tries to find relations between life sciences and material sciences.

“The convergence of globalization, changing demographics, and urbanization is transform- ing almost every aspect of our lives. We face new choices about where and how we work, live, travel, communicate, and maintain health. Ultimately, our societies are being transformed. MIT Living Labs brings together interdiscipli- nary experts to develop, deploy, and test – in actual living environments – new technologies and strategies for design that respond to this changing world. Our work spans in scale from the personal to the urban, and addresses chal- lenges related to health, energy, and creativity.” (livinglabs.mit.edu)

The framework of Living Labs goes through 4 steps:

1. Co-creation

2. Exploration

3. Experimentation

4. Evaluation

The diversity of the problems (between popula- tion, governments, institutions/organizations, and economy) implicates input of the local soci- ety that can only be handled by a trusted multi- disciplinary team. (manifest of social innovation network Netherlands)

Organization theory

I think in the end it all comes down to nature.

In evolution theory different organisms in the same habitat naturally find their niche or role in an ecosystem. In wild nature this is happening by selection and survival of the fittest. Organ- isms have different grades of adaption. Some are highly specialized organisms that are more effective at using the resources of the environ- ment but are more vulnerable when the environ- ment changes whereas less specialized organ- isms can also live in other ecological niches. Animals with the same requirements to an ecosystem live in competitive exclusion, that is, one kind has to find other resources or the different species find ways to share them or live in an ever-changing environment that makes co- existing possible. (Australia, 2003)

Diversity is fundamental to the principles in nature and the differentiation and competition will result in morphological adoption (=social evolution). (Australia, 2003) The same actually applies to humans but we tend to change our environment to our needs.

From a global perspective the world could be imagined as one big ecosystem (the United Nations) that is composed of distinctive organ- isms / organizations. A broadening of the under- standing is done by improving the knowledge about the interconnectivity of the organisms in an ecosystem and by analyzing their strengths, weaknesses, opportunities, threats and current undergoing transitions.

Strengths & weaknesses

An organization (or “organism”) of a particular nation must adapt to its environment. Over time it has developed special characteristics and a specific expertise that have proved themselves in this ecosystem. Simultaneously this exposure or determination causes weaknesses that must either be compensated with a strength or with the help of a suitable partner.

Opportunities & threats

The dominant tendency of thought is that deci- sions reached individually will, in fact, be the best decisions for an entire society.

“In economic affairs, The Wealth of Nations (1776) popularized the "invisible hand," the idea that an individual who "intends only his

own gain," is, as it were, "led by an invisible

hand to promote

When we let the market determine and treat environmental amenities like any other good, it comes down to whether people value them and are willing to pay or if they are not willing to pay, they won't be valued. With markets we also have that one needs the ability to pay, meaning that the poor get fewer environmental goods than the rich. But “public goods” like environ- mental values and health are considered non- market goods (=priceless) unlike private ones. (Hornstein, 2016)

Another problem is when people hesitate to purchase public goods because of the free-ride problem (positive externalities) which is why public goods tend to be under-produced, even when people need them. (Hornstein, 2016)

Humans usually grow up with a general feeling of being frightened which causes the impression one has to “survive to live”. In wild nature – even though more direct – it's actually no differ- ent (“survival of the fittest”).

The following threats have been discovered:

the public interest"

1. A high level of specification is more effective but makes you more vulnerable to a suddenly changing environment.

2. The free-riding problem brings with it an atti- tude of doing 'nothing' because rationally seen there is no benefit to helping others without expecting something in return.

3. On the other side exploitation is something that some people have no problem with. A person (in its broadest sense) with a strate- gic better position because it has more means than another, usually makes use of the impli- cated advantages it has.

The Tragedy of the commons states that technology alone isn't enough to solve the dilemmas national powers encounter. It describes the dilemma of common goods through a growing population, acquisition of energy (on condition that nuclear energy is no option), pollution and the incommen- surability of goods.

“The compromise achieved depends on a natural weighting of the values of the vari- ables.“

Summarizing, opportunities or chances are created by niches and through dynamics of inclusion and exclusion between the distinctive organisms. Different organizations have differ- ent sets of strengths and weaknesses and can therefore be valuable for each other through a competitive exclusion.

Elinor Ostrom's reaction to the Tragedy of the Commons is that the ability of people to orga- nize themselves and that differences in culture and believes as they can cause conflicts and wars are at the same time the starting-points to make concepts that enable us living peaceful and healthy lives.

2. Methodologies

See the methodology document.

3. Conclusion

Natural balance?

Air Egg

Green Choice (produce your own energy)

Transparancy = (Digital) fingerprint, carbon footprint, ecological blindness, affects the envi- ronment in order to optimize themselves from a global point of view.

Could data tracking and self improvement be used to feel more connected to your environ- ment

Interconnectivity (Internet of things)

New opportunities, data driven society (infor- mation is money / power)


Pentland, A. Sociale Big Data - Opkomst van de data-gedreven samenleving Maven Publishing B.V., Amsterdam / Ineke van den Elskamp, Schiedam, 2014

Goodman, B. & Rushkoff, D. The Persuaders 2004

Interview Peter Swire, PBS Frontline, 2004 retrieved from http://www.pbs.org/wgbh/pages/frontline/shows/persuaders/interviews/swire.html

Singer, Natasha, 2012

Acxiom Lets Consumers See Data It Collects retrieved from http://www.nytimes.com/2013/09/05/technology/acxiom-lets-consumers-see-

Hardesty, L. Automating big-data analysis 2015

The Tragedy of the Commons, Garrett Hardin, 1968 retrieved from http://science.sciencemag.org/content/162/3859/1243.full

Braungart Michael & McDonough, W. Knowledge, S. (Ed.) Cradle to cradle: afval = voedsel Scriptum, 2007

About MIT Living Labs, 2016 retrieved from

Hornstein, D. Introduction to Environmental Law and Policy 2016

Manifest – Investeer in sociale innovatie, 2016 retrieved from http://socialeinnovatienederland.nl/over-sinn/manifest/

Trendslator Hilde Roothart Romy van Dam, M. d. P. C. v. B. I. B. A. H. I. R. L. W. C. v. d. M. (Ed.) Mood 15 Trendslator, 2014

Fennema, M. Van Thomas Jefferson tot Pim Fortuyn - Balans van Democratie Spinhuis Uitgev- ers, Apeldoorn - Antwerpen, 2012