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Worksheet Objective: Leverage Michael Porter’s Five Forces Analysis to identify the
areas of the business that can benefit from big data.
Apply the big data value drivers (under-leveraged transactional data, new internal
and external unstructured data, real-time data analysis, integrated predictive
analytics) to each aspect of the Five Forces Analysis to uncover business areas that
can benefit from big data.
New Market Entrants
• Entry ease/barriers
• Geographical factors
• Incumbents resistance
• New entrant strategy
• Routes to market
Product/Tech Development
• Alternatives price/quality
• Market distribution changes
• Fashions and trends
• Legislative effects
• Competitive Rivalry: What is the potential impact of the big data business drivers
on your competitive or market positioning (e.g., industry fixed versus variable
costs, product or service differentiation, range of products or services)?
• Buyer Power: What is the potential impact of the big data business drivers on
your key buyers (customer) and buyer (customer) segments product or service
buying and negotiation powers (e.g., buyer purchase volumes and frequencies,
price sensitivity, acquisition and support costs, implied value of product or
services)?
• Supplier Power: What is the potential impact of the big data business drivers on
your suppliers’ trading, delivery and negotiation power (e.g., product quality, on-
time deliveries, geographical coverage, complementary services, breadth of
product or service offerings, substitution potential)?
• New Market Entrants: What is the potential impact of the big data business
drivers on mitigating or exploiting new market entrants and startups (e.g., new
technologies, new services, new markets, new customers, new channels)?
• Product & Technology Developments: What is the potential impact of the big data
business drivers on mitigating or exploiting new product or technology
developments and innovations (e.g., cheaper, faster, more reliable, more agile,
more scalable)?