Application of Business Intelligence
It has been said that Zynga Is “An Analytics Company Masquerading as a Games Company,” Discuss the Implications of This Statement
This statement means that the disruption in the video game industry is as a result Zynga’s success. The traditional companies that were involved in developing video games focused on developing games that the participants found enjoyable and thus be convinced to buy the game. Zynga on the other hand starts with the development of the game then proceed with the study of available data to be able to determine the active players, how the players play, type of players and the type of virtual goods that the game players are interested in buying.
The success of Zynga’s strategy presents a great challenge to the other industry players. Some of the game developers dislike Zynga’s strategy of focusing on data analysis rather than on the games creativity and design. Zynga’s target market is the casual gamers and not the hard core gamers who opt to engage in the complicated games.
What Role does Business Intelligence Play in Zynga’s Business Model?
Zynga uses real time data to generate graphs on daily basis. The result of the graphs is used to give a feedback on the components to be incorporated in the games the next day. The application of the business intelligence in Zynga’s business has increased the level of interaction between the active games players as they focus on buying more gifts while at the same time minimizing the duration passive players take to complete the game.
The application of the business intelligence also helps in grouping players based on their behaviors. Zynga is able to introduce promotions and activities based on the analysis of players’ behaviors and treads.
It is possible to iron out the successful components of the game and those that are unsuccessful. Zynga uses the results of the analysis of the games features to improve the gaming experience. The availability of the features that the gamers prefer is also enhanced. Most gamers prefer to buy gifts and thus Zynga is able to make a timely and accurate decision on the features to incorporate in a particular game.
Give examples of Three Kinds of Decisions Supported by Business Intelligence at Zyanga
The decisions supported by business intelligence include; player targets, virtual goods and type of users. Zynga uses business intelligence to improve the items to be targeted by the players which includes gifts which increases the interaction level between the player and the game.
Zynga’s strategy pays close attention to details obtained from the data generated on daily basis which assist him to make decision on what kind of virtual goods to offer. The decision on the virtual goods that the players are likely to buy more determines the profitability of the company due to increased sales.
Zynga uses Face book as the platform for his games, which exposes him to a global market of gamers. The information generated from this platform is used to group the users based on their behaviors. The business is thus able to make decisions on the heavy and light spenders in relation to a particular game. Zynga has 150 million active users. Of these only 5% account for the company’s corporate revenue.
How much of A Competitive Advantage does Business Intelligence provide for Zynga? Explain.
Zyanga revenue increased from $121 million to $591 in the year 2009 to 2010 respectively. The rise in revenue was mainly due to the business ability to create a competitive advantage over the competitor such as Electronic Arts and Activision Blizzard game company. The competitors have at some point been forced to adopt Zynga’s business strategy.
The company managers are required to submit weekly reports which are composed of the level of customer satisfaction and the traffic generated. The creation of the competitive advantage over the competitors has been made possible through the efforts of the company’s 3000 employees. The company uses a data driven approach which has enabled it to attract approximately 250 million users every month mainly via Facebook.
What Problems can Business Intelligence Solve for Zynga? What Problems can’t it solve?
The use of business intelligence by Zynga can help it solve problems related to the development of new games, user attraction, product offerings, increasing customer game engagement time and enticing customers to spend more money by offering virtual goods.
The company cannot however be able to solve the problem of rebellious employees who feel that creativity is superior to data analysis concerning game development. The use of face book as the gaming platform means that the decision by the face book executives will affect the business since such decisions are out of their control.