Understanding the paradigm shift to computational social science in the presence of big data
Introduction
With the rapid advances in technology, business interactions involving consumers and suppliers now generate vast amounts of information, which make it much easier to implement the kinds of data analytics that Gary Loveman, current CEO of Caesar's Entertainment, discussed in a 2003 Harvard Business Review article on data mining [70]. Today, this is referred to as the big data revolution in the popular press, and viewed as creating challenges and opportunities for business leaders and interdisciplinary researchers. The world's volume of data doubles every eighteen months, for example, and enterprise data are predicted to increase by about 650% over the next few years [45], [54]. Today, most firms have more data than they can handle, and managers recognize the potential for value, but the promise of big data still has not been realized, according to the leading academic [35], [78] and business media sources [38], [79].3 The potential arises from the use of data to support the way organizations operate and serve their stakeholders. A recent article in MIT Sloan Management Review [62] described the use of big data by an Atlanta-based public school, for example. High school graduation rates increased due to better-informed policy decisions that were based on the application of advanced analytics capabilities to student performance data. Likewise, organizations now are embedding analytics in their operations to support data-intensive strategies.
A recent McKinsey report has referred to big data as “data sets whose size is beyond the ability of typical database software tools to capture, store, manage, and analyze” [71].4 Such data come from everywhere: pictures and videos, online purchase records, and geolocation information from mobile phones. Big data are not just about sheer volume in terabytes though. Other important aspects have been emphasized in addition to volume, including variety, velocity and value [76]. Big data may be unstructured too: examples are text with social sentiments, audio and video, click streams, and website log files. Such data may flow in real-time streams for analysis, which can enable a firm to maximize business value by supporting business decisions in near to real-time. This new trend in decision support is evocative of what we saw in the 1990s with the emergence of data mining, and the new emphasis on data with a large number of dimensions and much higher complexity (e.g., spatial, multimedia, XML and Internet data). Most of the data sets were “one off” opportunities, rather than data that had become available due to systemic and technological advances.
Considerable challenges are present in the quest to capture the full potential of big data. The shortage of analytics and managerial talent is a significant and pressing problem, for example. CIO Magazine [72] and the Corporate Executive Board [79] have reported that it is difficult for firms to find the right people. The U.S. alone is reported to face a shortage of 140,000 to 190,000 people with deep analytical skills, as well as 1.5 million managers and analysts to make effective decisions [71]. (See Fig. 1.)
New perspectives in social science are now tracking the developments in big data. For example, computational organization science has broadened researchers' perspectives on social, organizational and policy systems, by adopting computational models that combine social science, computer science, and network science [22]. Other related developments have occurred, including the emergence of computational social science and e-social science [37], [63]. Computational social science involves interdisciplinary fields that leverage capabilities to collect and analyze data with an unprecedented breadth, depth, and scale. Computational modeling approaches now can predict the behavior of sociotechnical systems, such as human interactions and mobility, that were previously not studied with one-time snapshots of data for very many people [83]. We see a paradigm shift in scientific research methods — and one that prompts new directions for research. A useful perspective in this context is attributable to Runkel and McGrath [75], who characterized research methodologies based on three goals: generality, control and realism. They distinguished between their obtrusiveness and unobtrusiveness for the subjects of research.
With emerging collection techniques for big data sets, there seem to be fundamental changes that are occurring related to research methods, and the ways they can be applied too [58]. In e-business, for example, the contexts include social networks, blogs, mobile telephony, and digital entertainment. The new approaches we see are based on more advantageous costs of data collection, and the new capabilities that researchers have to create research designs that were hard to implement before. The research contexts include human and managerial decision-making, consumer behavior, operational processes, and market interactions. The result is a change in our ability to leverage research methodology to achieve control and precision in measurement, while maintaining realism in application and generality in theory development.
We will discuss the causes of the paradigm shift, and explore what it means for decision support and IS research, and more broadly, for the social sciences. How can we take advantage of big data in our research? What new perspectives are needed? What will the new research practices look like? What kinds of scientific insights and business value can they deliver in comparison to past research? And what research directions are likely to be especially beneficial for the production of new knowledge?
Section 2 reviews traditional methods for research and discusses the key factors that are creating the basis for a paradigm shift. Section 3 describes the new paradigm in the era of big data, and how it relates to decision support, IS and social science research. Section 4 assesses how the research has been changing, through the use of a set of specific comparisons between research that was conducted before and after the emergence of new methods associated with big data. Section 5 offers some new research directions, and section 6 concludes.
Section snippets
How are big data supporting a research paradigm shift?
The move to computational social science in the presence of big data involves a Kuhnian scientific paradigm shift [60]. We will provide a background on the traditions of research inquiry, and then examine the driving forces for the paradigm shift, and why access to large stores of data is speeding the process.
The new paradigm: computational social science with big data
We next discuss the details of the paradigm shift in research, as a by-product of the identified forces.
A comparison of examples of traditional and new paradigm research
A telltale indicator of the changes that are occurring is when we can identify research that introduces fresh research questions associated with longstanding problems and issues that can be studied in ways that were not possible before, and with new depth and insight from the findings. We next explore three representative areas of research that now involve the use of big data and analytics for business, consumer and social insights: Internet-based selling and pricing; social media and social
Research guidelines and practical considerations
We next discuss several new directions for research that have become possible.
Conclusion
The excitement is high around the new opportunities that big data make available in research. We have emphasized the importance in the role it plays to diminish the three-horned dilemma in computational social science research. This change is a paradigm shift that enables us to study a wider range of issues in time and context with unprecedented control and new real-world insights. Still, the challenges for conducting this kind of research are significant, as our discussion of practical
Acknowledgments
The ideas in this article were presented as they were developed at: the 2011 Workshop on E-Business in Shanghai, China; the 2012 International Conference on Information Management in Kaohsiung, Taiwan; the 2012 Wuhan International Conference on E-Business in China; the China University of Geoscience; and included as discussion papers for the 2012 Workshop on Analytics for Business, Consumer and Social Insights, and the 2012 International Conference on Electronic Commerce in Singapore. We
Ray M. Chang is a Research Scientist at the Living Analytics Research Centre, and an Adjunct Faculty in the School of Information Systems at Singapore Management University. He previously served as a Visiting Scholar at the Desautels Faculty of Management at McGill University in Montreal, Canada. He received his Ph.D. from Pohang University of Science and Technology in South Korea, and worked for several years as an R&D analyst and manager at SK Telecom. His research interests include business
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Ray M. Chang is a Research Scientist at the Living Analytics Research Centre, and an Adjunct Faculty in the School of Information Systems at Singapore Management University. He previously served as a Visiting Scholar at the Desautels Faculty of Management at McGill University in Montreal, Canada. He received his Ph.D. from Pohang University of Science and Technology in South Korea, and worked for several years as an R&D analyst and manager at SK Telecom. His research interests include business analytics and business intelligence, online social networks, open-source software communities, IT innovation and diffusion, and IT market strategy. His research appears in MIS Quarterly and Information Systems Research, with others across the IS, operations, and telecommunications fields.
Robert J. Kauffman is a Lee Kuan Yew Faculty Fellow for Research Excellence, and Professor of Information Systems at the School of Information Systems at Singapore Management University. He also serves as Associate Dean for Research, and Deputy Director of the Living Analytics Research Center. He recently was a Distinguished Visiting Fellow at the Center for Digital Strategies of the Tuck School of Business, Dartmouth College. He has received awards in multiple disciplines for his research contributions.
YoungOk Kwon is an Assistant Professor in the Division of Business Administration at the College of Economics and Business Administration, Sookmyung Women's University, Korea. She received the Ph.D. degree in Information and Decision Sciences from the Carlson School of Management, University of Minnesota. Her research interests include knowledge discovery and data mining, personalization technologies, business intelligence, and human decision-making. Her research has been published in IEEE Transactions on Knowledge and Data Engineering, IEEE Intelligent Systems, INFORMS Journal on Computing, and presented at a number of computer science and information systems conferences.