A FORMER boss of music retailer Fopp sees no reason why his new data analysis firm can't be a £100 million business in the next few years.

Peter Ellen set up Big Data for Humans to help companies exploit their data to boost profits and enjoy better relationships with their customers.

It is currently in the midst of a fund-raising programme, having recently been invited to join the Techstars' accelerator programme. The accelerator is rated as the best of its kind in the world.

Mr Ellen said many companies rely on data obtained via the likes of advertising, but he said this is "disconnected" in terms of customer focus.

In addition, while these businesses have access to a wealth of transactional information, he said they do not necessarily use this effectively to engage with the very people who buy their products.

According to Mr Ellen, Big Data for Humans offers a "disruptive and exciting" solution, applying complex cloud computing to translate data into useful insights into customer behaviour.

And he believes the power of its approach to increase customer spend by 20 to 30 per cent is "really quite attainable."

The firm says: "Our clients know something special about their customers that gives them an unfair competitive advantage. You don't need to be a data scientist but your co-workers may think you are."

It is not just a question of identifying customer behaviour, Mr Ellen said, but how this alters.

The company says: "Know changing habits of your best customers, then automatically

identify opportunities to sell more every day.

"Every time customer behaviour changes, we automatically trigger the best offer for them - via any channel."

Mr Ellen explains that targeting customers with relevant and timely promotions not only results in more sales, but better brand engagement.

He added that his company's focus has been on the retail and travel sector, and it is currently recruiting pilot clients. "We are getting some great feedback," he said.

Helping it move closer to realising its ambitions is its selection by US-headquartered start-up accelerator Techstars, which welcomed the firm as one of ten to take part in its Winter 2014 class.

Big Data For Humans is the first Scottish start-up invited to take part in the renowned programme, and speaking a few weeks into the 13-week hot-housing process, Mr Ellen says it is already proving invaluable.

He said his role at the helm of Fopp taught him a great deal about management, marketing and merchandise, and crucially, that what is most beneficial to target customers is ultimately what they buy rather than, say, where they live.

"It was a fantastic experience for me," he said of his time there.

Born and still based in Edinburgh, Mr Ellen aims to open an office in his home city and shift its operation to Glasgow city centre from Paisley. It has already opened an office in London.

Having co-founded Maxymiser, which is now based in the US and concentrates on optimising online customer experiences, Mr Ellen said he knows starting a business requires "a lot of fortitude."

Fundraising is under way for Big Data For Humans, and he said he is focusing on its long-term goals and "reverse engineering" the route to market to calculate the steps required to reach his business objectives.

Overall, Mr Ellen believes the sector the business is operating in offers huge potential.

His parting shot was: "I think it's a fantastic opportunity for us."