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13 Feb 2019

Industry

Hyper-Personalization… The technology trend of 2019 (Business Brief No.3787)

  • ​Amongst the most significant trends in technological development over 2019 will be the advent of Hyper-Personalization – the utilization of personalized Big Data for addressing the very specific needs for consumers.

    Compared to personalization, Hyper-Personalization goes further with respect to the type of data utilized. Specifically, real-time data is used, with data drawn from a multitude of sources, and in considerably greater volumes than in the case of mere personalization. This is consistent with the three tenets of Big Data – Velocity, Variety, and Volume. Hyper-Personalization relies on Big Data, and with this in mind, it is the technological progress and shifting consumer behaviors over the past few years that have come together to bring forth the current trend of Hyper-Personalization.
  • Efficiently utilizing consumers' personal data would enable companies to improve their product/service offerings.

    The increase in data volume, and more generally, the advent of Big Data, opens up the opportunity for companies which could effectively use said Big data to deliver more specifically-tailored products, reach a wider group of customers, and enhance their efficiencies. Amongst the industries best-positioned to benefit are advertising and marketing, banking and finance, as well as healthcare and medicine. Firms do need to be aware however, that with the lucrative potential associated with Hyper-Personalization comes the threat of greater competition from non-incumbents.
  • Hyper-personalization has the capacity to improve profitability, directly and indirectly (e.g. through brand loyalty).
  • Even though the growth of Big Data and the accompanying trend of Hyper-Personalization could offer huge benefits to corporates, unlocking this potential will require navigating significant practical hurdles. Amongst them are the challege of identifying the appropriate variables for predicting consumers' behaviors, the issue of data quality, and the question regarding consumers' right to data privacy. Success necessitates adequately addressing these issues.
  • From the discussion above, it should be readily evident that Hyper-Personalization will become an important trend over 2019, and companies wishing to capitalize on the accompanying opportunities should make preparations accordingly. Such preparations will include setting aside a sufficient budget for data analysis, recruiting and developing in-house the necessary capabilities, as well as ensuring compliance with the related regulations as they are rolled out. All this makes 2019 a very exciting year, one both rich in new opportunities and rife with new challenges.​