 Welcome back everyone today. We're talking about how businesses work so far. We've talked a little bit about the identity of the business customers and products that businesses create Businesses really need to make their own identity. They really need to identify what their product is and who their customers are But imagine we're trying to make a product. We're trying to make a Global business today. What are some of the things we're going to need? Let's let's take a look at some of the IT businesses that exist in Korea Okay, if it's an IT business your user usually offering as a product product some type of service Okay, so we're offering some type of service as a product so think of kakaotalk The service is a chat service. They have a lot of other services as well And all of them make different amounts of money, but what Service do they offer through the chat service? Well through chat We have access to a lot of other things first. We can communicate with our friends. Okay, does it cost any money? To use the chat service No, the chat service is free So, how does the chat service actually make money? well The chat service itself if you're on Windows or if you're using the computer-based one they do advertising on the desktop a little bit on The the smartphone version, but mostly on the desktop. So they do run ads So the chat makes money through advertising Which to me is crazy. No other company that I know of does that for chats, but anyway and What else do they make? Well, they make money off of funnelling users into other Services Okay, so other services for example cacao games things like that That's a different service, but it's so tightly integrated with cacao talk That people don't even realize that it's kind of a different service So funneling people into other services that are paid, right? And then also extra features in cacao talk like stickers This is actually a different service as well, but it's also part of the chat client So purchasing stickers or paying for extra services like that. So really the chat client just chatting Doesn't make any money By itself We'll talk about one one instance where it could make some money in a second But basically they make their money through advertising on the desktop Other services are channeling users into other services through the chat application And then those are paid services and then extra things like stickers Where people actually pay a little bit of money and then they can use those features in the chat Okay, well, how else could cacao talk make money? Well pretty easy pretty straightforward by selling data cacao talk has a lot of data on Everyone who uses cacao talk right they have for example things like locations Locations they have they can search all of your text message for example for keywords they can search for For example, who talks to whom who talks to whom You know what what your interests are what kind of things you're talking about who you're talking to where you're talking Where you're going what you type of pictures you're taking are you talking about food? Are you talking about movies? What movies are you talking about? They could collect all of that information? Okay, and with all of that information They can sell it to whoever wants to buy it So if the information is anonymized or supposed to be anonymized then they can sell that information to other companies Right other companies really want to know if you're a you know 15 to 20 year old what movies are you talking about right now if you're a 39 year old living in Chun Chun What's favorite place to eat well? What's your favorite place to eat or what place do you talk about to eat a lot that information is excellent for? doing both advertising and Making predictions about what people are going to do in the future and how can we sell to them better? so selling data to for example other companies or Even potentially to the government I'm sure a lot of statistics are collected and sold to the government about what people talk about and All of these are the things so chat is a service that doesn't really make any money by itself But it produces a lot of things that are very useful for making money for example an avenue to channel people to other places that do make money or to generate data and Most companies today the reason I'm talking about this is because most companies today Make all of their money from data data collection data processing data analytics Right, so the best companies are the best IT companies in the world are just collecting huge amounts of data on as many people as they Can and then finding ways to monetize that data or make money from that data data is Extremely important But more important than the data itself is being able to actually process and analyze the data in a timely manner Some companies generate so much data that a lot of it is just wasted because they can't process it all or make sense out of what It's telling them so data analytics today And in the future will be the biggest Jobs that you can possibly get everyone Will need to be able to do some type of data analytics for companies So if you started a data analytics company today in the next five years or even possibly right now You would immediately be in use if you can actually do real data analysis and help companies to make better decisions Based on the data that they have so for example even for coffee shops in the last couple years I've tried to work with small coffee shops that maybe I just liked their The owners or something like that. I drink a lot of coffee So what I wanted to do is help them to be able to make better decisions about their business They have like we talked about before a cash register All right So they have a cash register and that cash register has data on all of the transactions Transactions all of the coffee all of the cake everything that they've sold in their in their business It has all of the transactions in the cash register. Well with that data you can start to predict things so predict Predict how many coffees am I going to sell if it's you know 20 degrees outside? How many ice coffees am I going to sell if it's four degrees outside? If you have enough data you can start to make predictions like that on Tuesday I know I'm gonna probably get around 50 customers on Thursday. I know I'm gonna get a hundred If you can start to make those predictions then you can start to manipulate Some different variables so for example if I know that very few people come in on Tuesday Then I can run a sale Maybe I have coupons or something so on Tuesdays. I I do 10% off coffee Okay Well if I run a sale on Tuesday since nobody comes in then maybe more people start coming in and I start Making more of a profit on Tuesday because people have come in on Tuesday when it's a sale day They start to get familiar with my coffee shop And then they start coming in more just because they already know that it's a good place to buy coffee for example So with just cash register information We can analyze the transactions and make a lot of predictions about how people buy things what people buy things What combinations of things do people like to buy? We can figure out the things on our menu that is working and not working. We can do a lot of different analyses about how to make the business better just from cash register transactions and every Small business especially that I've went into that tries that has this data They never analyze it. They basically just look and and make sure that their costs are less than their revenue Right, so there are they making more money than what they put in that's basically all they look at But they have so much more information or so much more data They can use to make decisions to make more money out of their business And just run their business back But very few people do it because no one or very few people right now understand the value of data The people that understand the value of data are these big IT companies That basically put the data in the center of all of their business They don't really care so much about each of the services They care about the data that those services create and the amount of value that that generates for them If they have the data they have the knowledge if they have the knowledge then we are knowledge economy So then they have the power right this is really powerful and it can be really powerful for small businesses, too But very few people understand that so if you wanted to make a business right now Doing basic data analytics for small businesses for a very low price would be an excellent business because all like Even in Chuncheon I can think of at least a hundred businesses that would benefit from this kind of analytics in their small company So the point here is that companies IT companies especially but even some more traditional companies are really becoming data focused If you understand the data if you understand how to analyze data, then you control the situation a Lot of businesses however don't have those skills and that's why they need you Okay, so that's it for today about data and how different Services use data and how businesses work basically so thank you very much