Inspiring Data Agency
Exploring The Frontiers Where Data Works Every Day
Data Agency — making data work for you — is a powerful concept, but one with which a good number of companies and executives struggle. They simply can’t imagine how data could actually do work for them. To combat this, I often educate companies and executive teams on the industries and areas where data works every day. It is a who‘s who of financial success and efficiency, one that hopefully will inspire you to build data agency into your organization.
On Wall Street
High-speed trading has become the majority on Wall Street. They have coined the term Dark Pools — no relation to Dark Data. In fact, Wall Street may have less dark data than any other industry.
For decades, Wall Street has been investing in more, faster, and better data. Market movers have access to more information than almost any other profession. But more importantly, they have access to a fully automated platform. It is so easy to use data to trade stocks and commodities, people can do it from the comfort of their own smart phone. When it comes to Data Agency, Wall Street rules!
A Note On Rules
While Wall Street has invested millions (if not billions) into machine learning and data science, the fact is most of their data still runs through straightforward heuristics like decision trees. It is not complex neural networks or clustering algorithms producing those amazing returns — it is fast (lightning fast) execution of simple decision-based rules. Do you see why this might be easier than you imagine?
Bet On It
Legalized gambling is a force to be reckoned with. It is growing both in the US and overseas. It is also another paradise of information and data. It is a place where statistical modeling can be resourced, tested, and perfected. It is also a place where plenty is invested in Deep Analytics — Dark Data is a competitive advantage. While that sort of incentive has led to less and less dark data, there is still plenty to be found.
Much like Wall Street, computerized gambling systems allow for easy Data Agency. And, much like Wall Street, it is often rules based. Many gambling algorithms simply compare money allocations versus either known odds (or odds mildly augmented by insightful, but batched analysis). Optimization algorithms use data to adjust resource investment — with a large enough denominator, they are exceptionally lucrative.
At The Track AND On The Track
In the spirit of optimization, Formula One is another big player in the data space. They are also successful in quite a bit of Data Agency (no the two do not always go hand and hand).
Sensors and processors in Formula One racers are capable of responding to a myriad of data queues (read- rules again) that allow the vehicle to make subtle adjustments in real-time. These “micro-optimizations” may not seem like much but they can shave a second or two in a world where that can make all the difference.
Remember big denominators are not always about the number of people (or in this case race cars). They require large number of transactions (or interactions) AND linked dollar amounts. Formula One hits both.
The Chain Gangs
Supply chain has all the right ingredients save one. It is big, both in volume and dollars. It is a world where optimization can save or make Billions. But often the connection between buyer and seller, shipper and client, data and action — is messy, manual, or worse.
Enter the blockchain. While many are focused on cryptocurrencies (something one guru described to me as blockchain’s version of porn), what blockchain can do for the supply chain is incredibly powerful. That, of course, is because it will create real Data Agency. Blockchain does an amazing job of linking relevant data to packages and parcels. It creates transparency and real transactions with full data integrity.
What is more? The enablement of blockchain pours more resources into the digital platform capable of actioning real-time rules and other simple algorithms. Suddenly, supply chain (even outside of Amazon and Walmart) has all the embedded advantages of Wall Street and the Casinos. Data can work for you.
These are just three examples of Data Agency in practice. Are you still struggling to see how it can work for your organization? We can help.
