How Blockchain Will Create Data Agency
A Familiar Coattail Ride For An Important Analytic Process
Blockchain is all the buzz. It may be less understood than much of data and analytics. More sadly, it may not. Many people who think they understand it, still struggle trying to distinguish it from cryptocurrency. Put most simply —
Blockchain is a distributed ledger that functions a lot like a group text.
Data Agency does not have a lot of buzz. It is possible that I actually coined it, though I don’t believe that is true. Data Agency can also be put simply -
Data Agency is synonymous with real intelligence. It is when, rather than working for your data, your data actually works for you.
So how are these two things related? And why am I, a data analyst, so enthused about the overly buzzy concept of blockchain?
It is simple really. Blockchain will create Data Agency. Let me explain how that works and why it is so important.
Data Agency involves creating utility from your data. It often begins with simple heuristics and even manual processes. But it should quickly progress to more complex algorithms and full on automation. When done right, Data Agency means the data you collected is actively utilized to drive meaningful revenue or cut wasteful expense. Your data works.
In past articles, I have detailed industries where this is happening today. Wall Street, Las Vegas casinos, the supply chains of Amazon and Fedex , and social media — all have two things in common — robust investment in a data platform and very clear Data Agency. Blockchain will democratize data platforms for more and more businesses. Data Agency will follow (it is causal).
For those familiar with the inner workings of deep analytics, you recognize that one of the largest issues in deploying real analytic value is the plethora of uncollected or dark data in an organization. Those more familiar still, will recognize that beyond simple collection, dark data is the gift that keeps giving… well, really demanding. Once collected, dark data must be integrated, organized, and validated.
Blockchain closes that gap.
How exactly? By using a distributed ledger system functioning like a group text message… of course! I mean, that would not have been my first choice as an analytic leader for some of the world’s biggest banks and Fortune 500s. But upon learning that the rest of the exec team was already bought in and ready to fund it — I would have been a huge evangelist.
Ledgers are a boon to analytic progress. They connect the dots between data and the P&L. They allow you to tie and validate your numbers — connection and integrity made, relatively, easy. As for the group text message component read — structured and open. Two more helping concepts.
But blockchain offers one additional advantage, although what I can’t say. As Matteo noted above, your company is adopting blockchain for some purpose. Whether it is the 50 uses he identifies or something new entirely, blockchain is a data-driven, digital platform. So once you’ve collected, validated, structured, and analyzed the data — you now have at least one easy, relatively, place to use it. This is Data Agency at its easiest, low hanging fruit so to speak.
Companies Implementing Blockchain Often Fall On Two Extremes
Unfortunately, they are both often defined by ignorance. Some companies really have no investment in the Data Agency side of this equation. They are sold on blockchain, but they don’t really know why. Others have all the confidence in the world — they are fully bought in on blockchain, but they mistakenly believe that easy was not relative. They are both the victim of different angles of the “buzz”. One is a lack of any knowledge and the other a lack of meaningful knowledge that results in overconfidence.
Note — I said “often”. There are certainly cases of both companies and consultants that see both sides of this process. But even so, companies often hesitate to hire two sets of experts. Consultants often prefer to sell themselves as highly capable on both ends. It is just one more iteration of ignorance. It is unlikely that an expert blockchain specialist is also going to be an expert on Data Agency as well. These are two complex disciplines.
So while blockchain will allow Data Agency to ride upon its coattails, it may still be several cycles before a meaningful number of companies start realizing the full effects of this investment. Patience will be in order. Regardless, a successful blockchain integration will better position many companies to create Data Agency down the road. The gap closes — just don’t believe it will be easy. This just makes it much more… possible.
Thanks for reading. For help creating Data Agency consider:
