Data Driven : Digital Marxism
Anyone can create value with the right dataFebruary 2014 By Geoff Wolf
It is the combination of people and tools that create value of any kind, in any industry. In the world of data and analytics, the data or processes themselves are meaningless without a person to make it all happen and to interpret the result. Sure, computers and databases can churn out value, but they have to be loaded with programs and rules first—not to mention the strategic understanding afterward.
Data: Then and Now
Years ago, before 24k modems and couplers roamed the landscape, marketing was dominated by a combination of calculators, yellow legal pads, ledger sheets and mainstream retail marketing practices.
Attribution and investment decisions were built on a foundation of focus groups and old-fashioned research. Then came the world of Lotus spreadsheets, manual reporting and blazing 56k modem speeds. The tools of the trade that created data and analytics value, up until this time, were controlled by a single person with 10-key calculators, Lotus programs and green bar printouts in-hand.
Next came 800 numbers, the Internet, more powerful computers and more complex direct marketing practices. All of this meant more and more data started becoming available. Because of this, the tools necessary to create value from data and analytics needed to become more powerful, too.
It makes sense that the investments necessary to develop new tools to keep up with the voluminous amounts of data arriving would only be available to those with enough cash to make the commitment. Thus, the tools and practices necessary to create value moved into the hands of the larger entities. The single person with a calculator was replaced by a team with relational databases to leverage. Amazing things were accomplished with the never-ending stream of new data, which continues today.
However, technology also has been expanding as rapidly as the volumes of data. We have now gone full-circle in regard to the tools necessary to create value from data and analytics. Extremely powerful tools are becoming available and are returning the "tools of production" back to a single person, with very affordable processing speeds and gigabytes of storage at their fingertips.
All that's necessary to create value now is the time to learn the new tools and keep up with programming enhancements that arrive almost daily. It's safe to say a single person can now deliver 80 percent of the value of a full-scale relational database investment. It also is a good bet that 80 percent is enough to provide all of the data and analytics most businesses have the bandwidth to act on at any given point in time.