Don’t be blinded by big data.
That is the warning in a recent InformationWeekย (gated) article and online discussion, pointing out that just because you have flashy, powerful, big data metrics, they are not the only valid or pertinent metrics. Recently ousted CEO Ron Johnson of JC Penney cited all kinds of detailed data to justify major reorganization for the company in 2012, and then made fundamental alterations based on it. Deep discounting ended, private labels would no longer be as emphasized, and online product lineups were slashed.
As we now know, the changes upset the company’s core market while failing to attract much new interest from other demographics or clientele, resulting in a sharp drop in sales overall: $12.9 billion in 2012, down from $17 billion in 2011.