Using Big Data to inform new product development has many benefits. Firms can create products that connect with the consumer, provide increased consumer value, minimize the risks associated with a new product’s launch, and both allocate, and coordinate the use of, internal R&D resources efficiently.

Through data mining, firms can also identify consumer needs it might not otherwise have captured. By continuously developing products that fulfill consumer needs, firms can deepen customer brand engagement and increase customer lifetime value. Through modeling and predictive analytics, the firm can forecast the performance of the product(s) in the market both pre- and post-launch in near-real-time, determine the optimal distribution chains, and optimize marketing strategies to acquire the greatest number of customers at the lowest cost.

In sum, Big Data can help transforming big data into actionable consumer insights; develop new products; and improve existing ones.