BUSINESS ANALYTICS

Course work

SUBMITTED BY
ALBASHEYR
MASTER IN MANAGEMENT
Table of Contents

SECTION - 1
Executive Summary ...................................................................................................................................... 3
1. Introduction ........................................................................................................................................... 4
2. Background of the Financial Services Industry .................................................................................... 4
3. Analyzing the Literature ....................................................................................................................... 6
3.1 Strengths of Data Analytics in Financial services Industry ................................................................ 6
3.1.1 Fraud detection............................................................................................................................. 6
3.1.2 Online reputation.......................................................................................................................... 7
3.1.3 Operational Efficiency ................................................................................................................. 7
3.1.4 Risk analysis ................................................................................................................................ 7
3.1.5 Good customer service ................................................................................................................. 8
3.2 Weakness ............................................................................................................................................ 9
3.3 Opportunities....................................................................................................................................... 9
3.4 Threats............................................................................................................................................... 10
4. References ........................................................................................................................................... 11

SECTION -2
PART - A
1. Introduction to Block chain Technology ............................................................................... 15
2. Why Block chain Technology ? ............................................................................................ 15
3. Analyzing the Literature ........................................................................................................ 18
4. Competitive advantage for Airbnb by turning into bAirbnb ................................................. 20
PART - B
1. Introduction to Drones or Unmanned Aerial Vehicles (UAV) .............................................. 22
1.1 Media and Entertainment Industry ................................................................................. 22
1.2 Transportation & logistics industry ................................................................................ 23
1.3 Agriculture ..................................................................................................................... 23

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SECTION - 1

2
Executive Summary

Financial services companies produce and accumulate exabytes of data per year, including
structured data such as consumer profiles and transaction history, as well as unstructured data such
as customer activities on website and social media. The financial crisis of 2009 increased the focus
of financial institutions on customer risk management. The financial services companies need to
exploit big data to gain a competitive edge in this dynamic environment. This will help them to
better comply with regulations, identify and prevent fraud, assess consumer behaviour, increase
sales, create data-driven products and much more. Here in this study, there has been a concise
attempt to analyze the various literatures related to the SWOT of data analytics in the financial
services industry. The strengths of big data dominates and overcomes its shortfalls and weakness.
There has been an ever increasing popularity for the data analytics in financial services industry
and this has become an inevitable part of streamlining their services.

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 1. Introduction

According to an IBM report in 2015, it stressed that the whole world generates 2.5 quintillion
(1018) bytes of data every day and that 90% of the data in today's world got generated over the
last two years. These figures show that the Big Data rate has increased exponentially in recent
years and will continue to increase in the years to come. (Elragal & Haddara,2014) found that not
only companies and governments, but also individuals in society generate data. Big data analytics
has become a key factor in exposing hidden information and gaining competitive market
advantages (Philip et al., 2015). The financial services sector is potentially the most data-intensive
sector in the world economy, and it is impossible to overestimate the effect of big data on the
sector. Banks have huge amounts of customer data (i.e., ATMs, POS transactions, online
payments, customer profile data collected for KYC ), but they are not very good at using such rich
data sets because of their silo, product-oriented organizations. While the financial services industry
has invested heavily in data collection and processing technology (such as data warehouses and
business intelligence) for more than a decade, this is one of the precursors of developments in big
data technologies.

2. Background of the Financial Services Industry

The financial sector produces a large amount of data such as customer data, logs from their
financial products, transaction data that can be used together with external data such as social

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media data and website data to support decision-making. The big data explosion that took place in
and around the 21st century finds a resonance with financial service companies, taking into account
the valuable data they have accumulated for many decades. The IBM Institute for Business Value
Executive Report indicates that 71% of banking and financial institutions use Big Data Analytics
to generate a competitive advantage that is relevant to their organizations. Experts in the financial
industry describe big data as the tool that allows an enterprise to develop, manipulate and handle
vast data sets within a given timeframe and the storage necessary to support data volume, defined
by variety, volume, and speed (Srivastava and Gopalakrishnan, 2015). Big data applications in the
financial sector include monitoring of social media, risk management, web analytics, security
intelligence, and fraud detection. (Pejic-Bach et al., 2019) points out that text mining or text
processing is one of the potential ways to extract information from the vast amount of big data.
Figure 1, depicts the growing importance of data analytics in the financial services industry.

Figure 1 – Importance of Data Science and Machine Learning by Industry

Source- Dresner Advisory Services

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 3. Analyzing the Literature

The Literature pertaining to the SWOT of data analytics in financial industry is consolidated and
discussed.

3.1 Strengths of Data Analytics in Financial services Industry

(LaValle, Lesser, Shockley, Hopkins & Kruschwitz, 2011) discovered that using Big Data and its
analytics would make the company twice as likely to be a top performer in its industry.

Through Big Data Analytics, financial institutions such as banks and micro-lenders will gain
greater insight into customer needs and satisfaction. From this viewpoint, companies will develop
products according to their consumers ' desires, which will be more focused and result in higher
loyalty and higher sales volumes.

3.1.1 Fraud detection

There are numerous attempts of fraud in highly regulated industries such as banking and finance.
Big data can be of great importance to these sectors as the analysis of relevant data sets will
improve the detection and prevention of fraud. (Bănărescu, A., 2015) described data analysis as a
method for preventing and detecting fraud, especially in database fields, and data can be easily
converted into electronic format, and it is to be of greater importance in banking and insurance
field.

(Sadasivam et al, 2016) Introduced an approach to the identification of financial statements fraud
using client annual reports and analysing them on Hadoop due to data heterogeneity in these
reports, MapReduce is then applied to select features detecting fraudulent financial reports. It was
found that the use of MapReduce technique improves the time efficiency by 85%.(Kamaruddin
and Vadlamani, 2016) proposed a hybrid system of Particle Swarm Optimization and Auto-
Associative Neural Network (PSOAANN), and implemented it in a Spark computational
framework to detect fraud transactions in credit card. (Bologa et al.,2013) Presented the advantages
of using Big Data technology and parallel processing capacity, and identified the data analytics
that can be used to detect insurance claim fraud. (Dora and Sekharan, 2015)addressed the problem
of fraud detection in health insurance using Hadoop by creating a model to quickly identify
fraudulent claims by relaying insurance company data and hospital records.(Baesens, B et al.,

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2015) came up with technique to leverage fraud analytics using descriptive, predictive, and social
networking techniques for fraud detection. The fraud analytics has been carried out by Citibank,
who has strategically invested in Feedzai, a data science company that uses real-time machine
learning and predictive modeling to analyse big data to identify fraudulent behaviour and reduce
online banking provider's financial risk

3.1.2 Online reputation

Big data tools can conduct sentimental analysis thanks to massive innovations. The financial sector
assesses the posts of people on various platforms such as Facebook, Twitter, and Instagram. They
can analyse what different parties say about them, their products, or services. It helps the financial
institutions to keep their online reputation. (Manaman et al.,2016 ) has proposed an online
reputation monitoring system using N-gram learning approach to analyze the positive or negative
impact of social media interactions on the reputation of the company.

3.1.3 Operational Efficiency

Businesses are 60 percent to 70 percent more likely to sell to existing customers than prospects,
suggesting that cross-selling and upselling offer simple opportunities for banks to raise their share
of income – opportunities that are made even easier by banking big data analytics. Several financial
services companies have aggregated data from various channels and silos by setting up operational
data stores (ODS) and data warehouses (DWH) based on relational databases. As (Islam, N., 2018)
rightly points out that the business intelligence and analytics is an important business aspect that
includes the transformation from data to information, insight, decisions and ultimately profitable
decisions by people who use those technology, tools, laws, methods, and processes. For example,
a bank can use its transaction records to determine the busiest hours of the day, weekdays, and
even months and prepare for optimum allocation of personnel, more seating for the customers, and
other services needed.

3.1.4 Risk analysis

Big data certainly plays a vital role in the management of financial risk. Big data can assist with
the analysis of catastrophic incidents and the evaluation of systemic risk models. Big data from

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wireless sensors can also be used in industrial systems for real-time monitoring to reduce
operational risk. (Choi and Lambert, 2017)

Adequate awareness of risk among players such as banks and insurance companies is a significant
concern in financial sectors. Insurance agencies need to have the highest level of understanding of
the extent to which they take risks when they insure customers. Lending companies must know
their total exposure when they give loans or offer their credit products. The advent of big data
applications has made risk analysis faster and accurate, as well as in offering excellent customer
service, and for reduced adverse experiences with the financial sector players. (Grover et al., 2018)

3.1.5 Good customer service

Companies in the financial sector can use big data analytics to enhance their customer service in
different areas such as customer traffic, favourite products, and input from different platforms.
This will increase the number of cashiers, dealers, and sitting rooms, as well as develop other areas
that consumers may have their input validated. The core idea is to win the loyalty of customers by
giving a more personified approach. Customer segmentation based on available data (e.g.,
customer profiling, examination of sales trends, past and current consumer behaviour) to gain real-
time insights into consumers.

Consumer segmentation has become popular in the financial service industry as it helps banks and
credit unions to classify their customers by demographic into neat categories. However, simple
segmentation lacks the granularity that these organisations need to better understand the needs and
expectations of their customers (Spies et al., 2014). The usage of big data helps easy profiling of
the customers and take segmentation to the next level by creating detailed customer files. The
companies are helped by predictive analytics to offer the customers the products or service of their
interest and solicit a favourable purchasing decision from them. (Hazen et al., 2014). It is supported
by customized advertisement strategy.

JP Morgan Chase & Co, one of the pioneers in the banking service industry, employs a program
called LOXM and COIN, which uses artificial intelligence and machine learning programs to
optimize their processes, which includes algorithmic trading and commercial loan interpretation.
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It relies on historical data extracted from billions of transactions and augment the ability of the
system to process and review documents at maximum speed and optimal prices. It has proved to
be more effective than the previous automated system and has resulted in significant savings for
the company. The task which earlier took 360,000 hours, now happens within seconds.

3.2 Weakness

As (Kaisler et al., 2013) precisely points out that Big Data is made up of much-unstructured
content, making analysis difficult. Moreover, since Big Data can identify hidden ties between
apparently unrelated data, it is difficult to know in advance, which Big Data can offer the highest
business value. It takes a cultural shift to incorporate Big Data. Instead of treating data as an IT
asset, data control should be passed to business users, making data a vital decision-making tool. It
means closer cooperation between company and IT and the elimination of the organizational
product-silos.

Banks and insurers will consider regulatory and privacy constraints. For example, the European
Regulation on Global Data Protection (GDPR) allows businesses to store personal data only when
it is required directly, besides, a customer should be in full control of his data, which means that
at any time he should be able to request that his data of privacy be accessed or updated. The
organization should be able to explain why it stored personal data. It will undoubtedly make Big
Data usage cases a grey area to circumvent a regulatory law. ( Jensen, 2013)

3.3 Opportunities

Big Data analytics has introduced new business models such as monetization of data interest and
metamorphosis of industry. Depending on their level of sophistication, companies actively
leverage Big Data. As they grow and mature, they can not only optimize strategies and processes
on real-time analysis of Big Data, but they can go further by monetizing Big Data's value.
(Benjelloun et al., 2015). The support provided by machine learning and AI is immense in targeting
the customers, and it even helps in the maintenance of loan portfolios. Such systems will
automatically analyze the customer database of a bank and highlight common data points such as
credit score, household income, and demographics that can then be used by the bank to see which

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customers might be the right candidate for a specific loan or other product. Research by McKinsey
reported that sales and marketing consume about 15% of financial service companies ' costs, which
means that improving the efficiency of these processes can lead to significant cost savings.

3.4 Threats

One of the modern banking industry's biggest challenges is that many legacy systems are
incompetent to handle the big data revolution. While the concept of big data in banking has been
around for several years now, many institutions still need to build an infrastructure that can handle
the large volume of information that comes with it.

Very often, data sits in many silos (i.e., large, monolithic legacy systems), making data
centralization difficult. Many financial service firms have already invested in extracting specific
data from these silos to data warehouses (often batched), but Big Data ideally requires more data
and faster delivery (near real-time).

The data quality can also be a matter of concern when the companies are managing an
exponentially powered sheer volume of data. Côrte-Real et al. (2019) analyzed the data quality
attributes of completeness, precision, and currency in developing organisational capacities and
ultimately leading to performance gains. Their results indicate that these quality components
contribute significantly to overall competitive performance.

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 4. References

Abdullah, N., Ismail, S.A., Sophiayati, S. and Sam, S.M., 2015. Data Quality in Big Data: A
Review. International Journal of Advances in Soft Computing & Its Applications, 7(3)

Baesens, B., Van Vlasselaer, V. and Verbeke, W., 2015. Fraud analytics using descriptive,
predictive, and social network techniques: a guide to data science for fraud detection. John
Wiley & Sons.

Bănărescu, A., 2015. Detecting and preventing fraud with data analytics. Procedia economics
and finance, 32, pp.1827-1836

Benjelloun, F.Z., Lahcen, A.A. and Belfkih, S., 2015, March. An overview of big data
opportunities, applications and tools. In 2015 Intelligent Systems and Computer Vision (ISCV) (pp.
1-6). IEEE.

Bologa, A.R., Bologa, R. and Florea, A., 2013. Big data and specific analysis methods for
insurance fraud detection. Database Systems Journal, 4(4), pp.30-39.

Choi, T.M. and Lambert, J.H., 2017. Advances in risk analysis with big data. Risk analysis,
37(8), pp.1435-1442

Dora, P. and Sekharan, G.H., 2015. Healthcare Insurance Fraud Detection Leveraging Big Data
Analytics. IJSR, 4(4), pp.2073-2076

Elragal, A. and Haddara, M., 2014. Big Data Analytics: A text mining-based literature analysis.
In NOKOBIT-Norsk konferanse for organisasjoners bruk av informasjonsteknologi (Vol. 22, No.
1).

Grover, V., Chiang, R.H., Liang, T.P. and Zhang, D., 2018. Creating strategic business value
from big data analytics: A research framework. Journal of Management Information Systems,
35(2), pp.388-423.

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Hariri, R.H., Fredericks, E.M. and Bowers, K.M., 2019. Uncertainty in big data analytics:
survey, opportunities, and challenges. Journal of Big Data, 6(1), p.44.

Hazen, B.T., Boone, C.A., Ezell, J.D. and Jones-Farmer, L.A., 2014. Data quality for data
science, predictive analytics, and big data in supply chain management: An introduction to the
problem and suggestions for research and applications. International Journal of Production
Economics, 154, pp.72-80.

Islam, N., 2018. Business Intelligence and Analytics for Operational Efficiency. Available at
SSRN 3163429

Jensen, M., 2013, June. Challenges of privacy protection in big data analytics. In 2013 IEEE
International Congress on Big Data (pp. 235-238). IEEE

Kaisler, S., Armour, F., Espinosa, J.A. and Money, W., 2013, January. Big data: Issues and
challenges moving forward. In 2013 46th Hawaii International Conference on System Sciences
(pp. 995-1004). IEEE.

Kamaruddin, S. and Ravi, V., 2016, August. Credit card fraud detection using big data analytics:
Use of psoaann based one-class classification. In Proceedings of the International Conference on
Informatics and Analytics (p. 33). ACM.

LaValle, S., Lesser, E., Shockley, R., Hopkins, M.S. and Kruschwitz, N., 2011. Big data,
analytics and the path from insights to value. MIT sloan management review, 52(2), pp.21-32.

Manaman, H.S., Jamali, S. and AleAhmad, A., 2016. Online reputation measurement of
companies based on user-generated content in online social networks. Computers in Human
Behavior, 54, pp.94-100.

Matturdi, B., Zhou, X., Li, S. and Lin, F., 2014. Big Data security and privacy: A review. China
Communications, 11(14), pp.135-145.

Pejić Bach, M., Krstić, Ž., Seljan, S. and Turulja, L., 2019. Text Mining for Big Data Analysis in
Financial Sector: A Literature Review. Sustainability, 11(5), p.1277

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Phillips-Wren, G.E., Iyer, L.S., Kulkarni, U.R. and Ariyachandra, T., 2015. Business Analytics in
the Context of Big Data: A Roadmap for Research. CAIS, 37, p.23.

Sadasivam, G.S., Subrahmanyam, M., Himachalam, D., Pinnamaneni, B.P. and Lakshme, S.M.,
2016. Corporate governance fraud detection from annual reports using big data analytics.
International Journal of Big Data Intelligence, 3(1), pp.51-60

Spiess, J., T'Joens, Y., Dragnea, R., Spencer, P. and Philippart, L., 2014. Using big data to
improve customer experience and business performance. Bell labs technical journal, 18(4), pp.3-
17.

Srivastava, U. and Gopalkrishnan, S., 2015. Impact of big data analytics on banking sector:
Learning for Indian banks. Procedia Computer Science, 50, pp.643-652

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SECTION- 2

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PART - A
1. Introduction to Block chain Technology
The Block chain technology got introduced by the pseudonym Satoshi Nakamoto (The Economist,
2015). Naka-moto, the cryptocurrency founder of bitcoin, published the report "Bitcoin: A Peer-
to-Peer Electronic Cash System" in 2008. The source of this study is still unknown today, but he
was presumed to be a hacker or a group of hackers (Trautman, 2016). It is a new technology that
has enormous potential in a variety of industries. A Block chain is a historical record of multi-
participant transactions shared across a network. It is a mechanism for storing data in a
decentralized fashion where the same information is updated in real-time by everyone with access
to the chain. The Block chain is a distributed digital ledger or decentralized database to which data
is cryptographically encrypted and sequentially and permanently recorded in smaller data sets
called "blocks." Each block has an average of 1 megabyte and control data of about 200 bytes and
also with a link to previous blocks

2. Why Block chain Technology ?

Block chain technology was developed at an incredibly rapid pace and took the world of business
by storm. The reason for choosing Block chain is its broad impact on different fields. As per the
report compiled by Davis and Philbeck (2017) for World economic forum, twelve major emerging
technologies that have the potential to dramatically impact society were listed based on the benefits
and their potential negative consequences (Figure 1 ). Block chain, or distributed ledger, circled in
red in the grid above, is recognized as an emerging but potentially disruptive technological

15
innovation

The potential applications of Blockchain is represented by the figure 2..

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A survey was conducted by Deloitte to determine the impact of blockchain technology among the
industries across the world. The survey results were overwhelmingly favouring the growth of
blockchain technology among the industries. 53% of respondents state that blockchain technology
became a key priority for their organisations in 2019, i.e., a 10-point improvement over the
previous year (see figure 3). It suggests that the overall attitudes of respondents about Blockchain
have greatly improved.

Figure 3- Deloitte survey results

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 3. Analyzing the Literature

Blockchain technology provides a new way of exchanging interest and information on the Internet
for people and businesses. The first implementation of this technology was Bitcoin–a digital asset
that operates on a distributed, peer-to-peer data system without the intervention of trusted third
parties (Queiroz, Telles, Bonilla, 2018). Blockchain technology allows the running of small
programmes (i.e., smart contracts), potentially allowing secure management of contractual
relations between trading parties (Hofmann, Strewe and Bosia, 2018). (Pinna and Ruttenberg,
2016) in their research, proposed that smart contracts, one of the technology's most ambitious
applications, could replace many functions currently performed by the requisite post-trade
institutions. Blockchain technology is considered as an innovation that can shift the transaction
approach. The innovative solutions and impact standards are synonymous to the magnitude of
changes introduced by the Internet network. (Hileman & Rauchs, 2017).

The financial sector remains the most important application field for blockchain-based
technologies, but it is slowly entering other areas and industries. The five most promising funds
that have already invested in research and first implementations include financial services, land
registry, healthcare, automotive, and food (Holden, 2018). It is also one of the most significant
business and technological developments in the field of logistics distribution management (Łapko,
Wagner, 2019). The apparent purpose of implementing new technologies should be to make
maritime logistics processes more effective. For example, as soon as a shipment is shipped, a smart
contract might submit a payment to a supplier. A business could signal via Blockchain that a
specific good was re-received, or the product could have GPS features that would automatically
record a location update that prompted a payment in effect (Iansiti and Lakhani, 2017). FedEx,
the world's biggest logistics company, has already implemented blockchain technology in their
high-value cargo operations and found to be very useful and is planning to extend it into all
shipments. Blockchain is concerned with improved transaction protection and speed and data
exchange. It has brought significant change in supply chain management. (Malinova and Park,
2016) studied on how to reshape and improve stock trading and market architecture through the

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use of blockchain technology. Blockchain technology, according to (Murray 2016), would
completely revolutionize the financial sector and even make specific jobs disappear, such as
brokers. There is a common belief that the Blockchain decreases the popularity of traditional
banking. According to (Trautman 2016), the blockchain technology, for all the obstacles it faces,
has the potential to disrupt and reshape the banking world.

The blockchain technology should be introduced by financial institutions to simplify international

payments and enable share trading. International transfers may take up to several days in today's
banking system to reach their destinations, and they can also be costly procedures. Both forms of
payments can be processed immediately or in a couple of minutes with reduced transaction costs.
(Pilkington, 2015). Some of the top first movers in banking with blockchain technology are JP
Morgan Chase, Bank of America, Barclays and Chinese banks ICBC, Chinese construction bank,
and Agricultural bank of china. Takas bank, a Turkish bank, recently entered the list with digital
gold transfer based on blockchain technology.

The blockchain technology can be used to introduce land registry systems that are transparent and
tamperproof. Land registries consist of property rights records, such as registered estates and land
interests. On the one hand, a blockchain-based land registry enhances protection, as it makes it
impossible to illegally alter property rights ownerships that are common in corrupt countries. On
the other hand, it is possible to use property as collateral. A good collateral increases the likelihood
of securing a loan, which increases investment opportunities

The application of Blockchain faces both technological and legislative obstacles. The creation of
new blocks for the Blockchain has an adverse environmental impact. Every time a new block is
created or a transaction verified, the mining process consumes large amounts of electricity and
mining equipment. It continually burns energy and raw materials (Narayanan et al., 2016). The
method of solving mathematical puzzles by hand can be replaced by virtual mining, which also
eliminates the need for equipment (Narayanan et al., 2016). It is asserted to reduce the
"environmental footprint" created by the mining process and, more significantly, to ensure that
mining is carried out by those stakeholders who are most involved in the programme (Narayanan
et al., 2016). Legislative obstacles also exist, one of which is regulation. Stricter regulations may
hinder Blockchain technology development. Therefore, until we know the technology's full
potential, it would be a risk to reinforce the regulations of organisations where the technology can

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be implemented. Another problem faced by the technology is people who are resistant to change.
Such technology most affects sectors that rely on trust, such as financial institutions. While several
financial institutions are working on ways to adapt such technology, others are undoubtedly going
to fight against it. It may not be attractive for the institutions to move from a system where a
corporation or bank retains personal and confidential information to a proof-based system that is
not managed by anyone.

4. Competitive advantage for Airbnb by turning into bAirbnb

Airbnb is now the largest room provider in the world, measured by market value and occupied
rooms. Nonetheless, the room providers earn only part of the value produced as the international
payments pass through intermediary bodies, which take charges for each transaction and
substantial foreign exchange off the top and money settlements take a long time. Airbnb is the
repository of all the data of both renters and customers, which inherits a threat for privacy.

Moreover, the idea of Blockchain opens the door to new business possibilities like a member-
owned cooperative that would only be operated by its members. The Blockchain technology-
enhanced user experience for the Airbnb clients traveling and staying cities to a new high. (Sun et
al., 2016)

"bAirbnb" is a distributed framework, a smart contract kit that stores data on a home listings
blockchain. The bAirbnb app has a sophisticated interface that allows owners to upload their
property details and images. The platform manages all providers and landlords' satisfaction scores
to improve the decisions of all. For all the listings that meet the stipulated criteria, the bAirbnb app
scans and extracts the Blockchain for the entire listings that match with the search criteria. (e.g., 4
miles from Liverpool one, two-bedroom, 3-plus star Rating). The bAirbnb provides similar user
experience as that in Airbnb, the only exception communication is done via peer to peer on the
network through secured encrypted and secured messages and the details of communication will
not be stored in the central database like Airbnb. The communication between the room owner and
the client will be strictly private. (P de Filipi, 2017)

Property is accessed using the Blockchain-connected smart locks (IoT device). On arrival, the
smartphone of the client will sign a message with the public key as proof of payment, and the smart
lock will unlock for him. Owners do not have to drop the key or visit the house. The client and the

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owner have now saved the fee for Airbnb, there are no foreign exchange fees for international
contracts, and immediate payments are guaranteed. Also, data on the rental history is guarded
between only the approved parties and is confidential. It is the real value-sharing economy; the
winners are both consumers and service providers

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PART - B
1. Introduction to Drones or Unmanned Aerial Vehicles (UAV)
Unmanned Aerial Vehicles (UAVs), commonly known as drones, attract a lot of media and
research attention (Motlagh et al.,2016) . The use of unmanned aerial vehicles (UAVs) is
proliferating across many areas of public use, including real-time monitoring wireless coverage,
remote sensing, search and rescue, goods delivery, security surveillance, agricultural quality, and
inspection of civil infrastructure( Shakhatreh et al., 2019). Most companies are now interested in
using drones as they provide simple, cost-effective, and efficient solutions. To business people,
this is a very lucrative prospect, and the drone market is snowballing. Several businesses and
researchers are particularly interested in simultaneously using several drones known as swarms.
Typically, the word "drone swarm" refers to a group of UAVs that fly simultaneously and interact
with each other with only limited human control. (Lachow,2017).Some of the industries which
have made optimum use of drone technology are the Media and Entertainment industry,
Transportation & Logistics, and Agriculture industry. The extensive use of drones in these
industries are briefed and discussed here.

1.1 Media and Entertainment Industry

Aerial photography and filming are not only widely used by hobbyists, but also for filming
commercials and films. Drones has made their presence felt in films like Harry Potter, The wolf
of wall street, Sky fall, and many more. Drones are also used to capture news broadcasts events,
and BBC is one of the global players who has been an early adopter of this technology. In 2013,
the hexacopters captured exclusive footage of the U.K based HS2 railway project by the crafty
BBC producers at the Global Video Unit of BBC World Service Language Services. The team has
since been actively experimenting with ways to easily incorporate drones into their reporting,
piloting UAVs through war zones, natural disasters, and hazardous circumstances involving a
helicopter.

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 1.2 Transportation & logistics industry

Drones have preferred means of delivering packages in the business of e-commerce. They require
rapid transportation to predefined, specific destinations without much human help to enhance
customer experience. Amazon Prime Air shipped 2-kilogram packages over a 10-kilometer radius
at a rate of 10 cents compared to $2 to $8 in ground transportation (Pwc, 2016). A Finnish national
postal service, Posti, shipped a 3 kg package from Helsinki to Suomenlinna Island over a distance
of 4 km while exploring Europe's first delivery with a drone. DHL is another global logistics player
who continues to use drones to deliver great success in all kinds of supplies. The international
logistics company completed drone delivery tests in Tanzania in October 2018, delivering
medicines through a redesigned Parcelcopter model to an island in Lake Victoria.

1.3 Agriculture

The main problem faced by farmers is how to efficiently control crops over the vast tracks of land
under crop cultivation. The problem is compounded by the unpredictable weather patterns and
conditions that increase the cost of holding the crop fields and the risks of farming. The use of
drones provides cost-effective and efficient monitoring of crops at different stages, starting with
soil content analysis, seed planting, and selection of the most suitable harvesting method. An
upgraded technology is an evaluation of plant health through detecting fungal and bacterial
infections through the use of near-infrared (NIR) and visible light (VIS) to observe plant tissue
multi-spectral light.

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References

Davis, N. and Philbeck, T. (2017) The Global Risks Report; Emerging Technologies, 12th
Edition, World Economic Forum, pp 48-53, Geneva, Switzerland.

Iansiti, M. and Lakhani, K.R., 2017. The truth about blockchain. Harvard Business Review,
95(1), pp.118-127.

Malinova, K. and Park, A., 2016. Market design for trading with blockchain technology.
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