Capitalism and the Need for Data Protocols

hey everybody its Mike debut here with this week's data space analysis today we're going to look at so the data economy in general and why data protocols needed and with that we're gonna talk about sort of on high-level so that we're actually a speaker one article is actually more of a book review on reinventing capitalism in the age of big data this sort of goes into how in the fundamentals of capitalism are changing with what everything's going on in the data economy second and we're go for bizarre tackle from earlier this year which talked about a lot of big the numbers in the industry and the reason why I'm bringing this up and what I got highlight today sort of what do I see what do when we're looking at these numbers what are we really looking for and what as a company can you sort of derive from these charts and how can that affect your business so the first thing they're talking about here so reinventing capitalism in the age of big data so what this goes into is it's sort of saying how the world is shifting if you study economics and that and price scarcity is that when you know when you're setting prices for products in that the more scarcity information is the more you can charge for your products it's harder as a consumer to really understand what's going on if you or what the price should be if also you take away a lot of variables one of the use cases they give in this example is the author's talking about my booking hotels having a family and they like to look for hotels I have for too bad for bed for beds and two bedrooms but when you go online when you look at the hotel sites all you do is all you see is the price and so capitalism's always around all the data points have always gone in to to one single variable of the price that's how we make decisions but that's changing now is that you know in the at and the era of big data is that with the access to more and more information you can make more and more better decisions that price is not your only factory mean anymore you can start comparing specifications and so you might actually be looking at better quality products or better quality services and making decisions based on this multi-factor approach approach to everything being centered around price itself and so this is so what does enable what how is this enabled in business in that and that's where it key come to the data economy is that to basically make better decisions you have to have access not to information there's one good quote here I will read it off so I don't screw it up here but it talks about coordination I if there is a single crucial threat that is persisted through human history is the importance of Cortana coordination coordination allows communities to accomplish tasks that individuals working alone cannot people can build one on one of those strings and make up to one of his weaknesses coordination made possible to the Library of Alexandria but great wall trying to the Suez Canal in the moon-landing coordination in turn depends on communication the exchange of information that allows people to work together and so how this now gets applied is that when people are businesses and people now get access to more and more information through the sharing of data through data exchange that's life your if you're trying to plan like behind us you have Singapore's a the port of Singapore if you're trying to make decisions based on shipping if you try on docking times on what goes on each ship on one watch countries are sending goods to one another the more information you have the more access to this data you have the better decisions you can make and so we're seeing the world change where you're not just looking at price you're looking at all the different variables and as more and more data becomes in the market companies can make better decisions and one of the other main points this article that's really fascinating is that what it's talking about monopolies is that companies try to hoard as much data as they can and so it companies like Amazon Facebook Google Apple what they're doing is that they hoard as much information on consumer behavior as possible and the reason that they do this is to ensure that that they have control in that they can that the competition cannot succeed because they don't have access the same information the more information that Amazon has on its buyers and on the products that are acquired is the better that they can tailor their products to these customers to these – to their customers and sort of push away competition and so this brings us to a data protocol so why is a data protocol needed well to ensure that these monopolies don't exist you have to be able to share this data or get access to data across across United competitors are across your partnerships and that that basically what you want to do is that you want to make data that data that be available about not monopoly you want the smaller companies or the other firms to get it and be able to get access to the exact same data feeds and so why this is so where as Apple or Amazon might hoard all this data if you are consortium say your 100 companies individually you cannot compete but as a consortium if you map your data product and your data together to create a new product you call can now share this information so this can be in the form data core cooperatives or in the form of data pools or what you do is that you he'll you'll have all these companies come together share their data turn it into one single data source of truth that everybody can share so basically you're breaking up the monopolies by providing a Lisa an equal footing for you to compete on so it's definitely interesting read something to pick up will ensure that we put the link down in the description to the article itself which is a good summary of the book as well as inside there you'll be able to get access to the book the second part I wanted to talk about was 10 charts we're going big data growth you always see these charts big data that's a 50 billion dollar industry that's going up to a hundred billion dollars in this one it's a forty two billion dollar industry in 2018 going up to 103 billion by 2027 we always see these big numbers everybody understands that data is go ahead a true directory like this but people are sort of lost on where it's actually going where this dollars going to what are the problems are going to solve and so what the the chart that I wanted to pull up here it speaks about it shows the different segments so it shows on one axis it shows the different types like health logistics travel public social so media telecom consumer retail then talks about the different areas of the business that are that are being impacted or fundamentally changing due to data and across the board on any industry at first is always sales and marketing a bit that they're saying that there's a significant fundamental change so when you look at that you have to say okay what are people using to solve data what are they using their data for so if you're trying to build the data Prager I think of what data is actually useful in the economy the first thing you can look at is what are people what are the problems people are solving with data and this focus on sales sales and marketing you know anytime you can make more money anytime you can use data to your advantage to basically sell more market better that it's one of the easiest things to show ROI on so it's sort of obvious here that this is where people are seeing the impact let's say the remember that were where does your clients where do people actually see impact and we do you see that in the sales and marketing aspect the second thing is the Big Data initiatives and success rates this is also good to understand so if you're trying to go pitch a data prod you're trying to create a data products to say you understand footfall how people move through a city and using for falling in to try sell so you're a telco operator like SingTel star harbour or so forth that you're trying to sell a data product that gets people access access to this data of how people how anonymous people moves through a city they didn't understand okay what do you want to sell that for it what are they what are your buyers gonna use for this are they going to use it for decreasing here they say decreasing expenses one one big ones ones that create get it driven culture ones new avenues for innovation these are the so this focus here on this bar is on what are the Big Data initiatives that are actually being successful so you have to understand your clients on what are the what are the main drivers for the business what are they trying to solve and then what are they having success in and so you want to make sure you're hitting on this because it are trying to create a data product we're trying to put data into the market that has got very little impact on the business or more importantly that they're not to be able to see in our wire either care about what that ROI is you're starting to be going up against a brick wall so no matter how you see all this money you're like wait a second there's billions and billions of dollars going into Big Data initiatives why are we not being successful or then I really have to look at what people are focused on where that success is coming from what are the problems that they're trying to solve an immediate and then you can look in the mid term and long term and tailor the data products towards there so anyway so ha once again share this link under this Forbes article there so you sort of get an idea of the stats but stats alone really don't paint the picture you really have to look beyond the stats to see what do the statistics mean to the way you're approaching your business and the problems that you're trying to solve so yeah so thanks a lot please don't forget to hit the like button as well as subscribe and we'll be with you again next week take care

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