Solving Business Problems Using AnalyticsThe best approach to solving business problems is thinking from the perspective of the user. Analytics should support the reasoning behind the problem statement, but the approach needs to be from the user's point-of-view.Keeping this in mind, go ahead and download any product that you are not paying for. For example, say, Amazon Prime membership. Why would you, as a user, not pay for the membership? This is your problem statement.Now use the six-step framework that we just studied and try to solve this problem for Amazon. For the data, make calculated 'guesstimates.' Put down your answers below.
Question
Solving Business Problems Using AnalyticsThe best approach to solving business problems is thinking from the perspective of the user. Analytics should support the reasoning behind the problem statement, but the approach needs to be from the user's point-of-view.Keeping this in mind, go ahead and download any product that you are not paying for. For example, say, Amazon Prime membership. Why would you, as a user, not pay for the membership? This is your problem statement.Now use the six-step framework that we just studied and try to solve this problem for Amazon. For the data, make calculated 'guesstimates.' Put down your answers below.
Solution
The six-step framework for problem-solving in business analytics includes:
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Problem Definition: As a user, I am not willing to pay for Amazon Prime membership. The reasons could be many - I might not be a frequent shopper, the benefits of Prime membership might not seem worth the cost to me, or I might be unaware of the full range of benefits that Prime membership offers.
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Situation Analysis: Amazon Prime offers several benefits such as free shipping, access to Prime Video and Music, exclusive deals, etc. However, not all users might find these benefits appealing or worth the cost. Some users might not shop frequently enough to benefit from free shipping, while others might already have subscriptions to other streaming services.
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Identification of Potential Solutions: Amazon could offer a trial period for users to experience the benefits of Prime membership. They could also offer a tiered membership plan where users can choose the benefits they want and pay accordingly. Additionally, Amazon could do a better job of communicating the full range of benefits that Prime membership offers.
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Evaluation of Potential Solutions: A trial period could potentially convert more users into paying members. A tiered membership plan could cater to a wider range of users with different needs and budgets. Better communication of benefits could help users understand the value they are getting for their money.
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Choice of Solution: Implementing all three solutions could potentially increase the number of Prime members. However, the effectiveness of these solutions would need to be tested and evaluated.
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Implementation: Amazon could start by offering a one-month free trial to all users. They could then introduce tiered membership plans and monitor the response. Lastly, they could improve their communication about the benefits of Prime membership through emails, notifications, and on their website.
This is a hypothetical solution based on 'guesstimates.' The actual solution would require a detailed analysis of user behavior, preferences, and feedback.
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