Personalization technology includes ideas from user profiling, information retrieval, user interface design, and artificial intelligence to develop information services, which are sensitive and proactive to the individual preferences. Personalization helps in impacting the bottom line because the consumers feel important as relevant information pertaining to their choice is displayed to them, and the organization can benefit by increasing conversions. Nordstorm.com suggests shoes or a tie that goes with the suit or a similar suit in the same category . Personalization impacts the bottom line even when it is used in direct mails, emails, and online shopping. Personalization strikes a balance between what the organization can learn about users and what organization should learn about users . Data administration and Data Management contribute to a huge extent towards profit or bottom line of the organization. The IT giant Apple Inc., uses personalization for the iTunes, because when a user buys a song the portal suggests similar songs that are suggested by others .
Personalization systems require several IT tools that include internet, database, data warehousing, mobile networks, data-mining and collaborative filtering. The challenge in using collaborative filtering is that it requires large sample of users and content to work well. There are many technical challenges to deliver the requirements of personalization that includes increasing interoperability, joining multiple decisive sources, and valuing similar growth rates. The challenges in applying personalization are collecting the data, transforming the data into visions, and operationalizing the results. There are challenges for web developers, as expectations of security, scalability, and reliability are higher than before . The challenge of implementing collaborative filtering is that it does not recommend between unrelated categories, like a customer who liked a computer, may be interested in buying a power backup for it. In centralized collaborative filtering single repository stores all user ratings, and if it becomes corrupt, a user’s anonymity will be lost .
Works Cited
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