Data is a commodity; this is a concept that can be difficult to grasp. But the truth is, not only is data a commodity, it’s the new oil. The introduction of computers and the evolution of the internet has shined a new light on the importance of data in today’s society. Every second, tens of millions of data points are created through regular interactions, data points that companies like Amazon, Facebook, and Google have used to build new-age empires. And similar to oil, data is fueling advancement.
A Unique Comparison
The industrial age was a time of great innovation; this period produced inventions like the steam engine, the cotton gin, and the electrical telegraph. It was through these developments that new possibilities were created and society was pushed forward. Oil became so valuable because it served as the lifeline of these inventions, taking them from conceptual ideas to working models.
Another wave of advancement came in the 21st century. The 21st century marked a new age in society, a rapid shift from traditional industry to an age based on information technology. Similar to how oil powered the steamboat, data powers computers. In short, data is to the information age what oil was to the industrial age. Ironically, the symmetry doesn’t stop there. Although intangible, data is mined, refined, valued, and exchanged; it is for these reasons that economist and data experts are calling data the new oil.
The Data Economy
The data economy has become a crucial byproduct of the data revolution. The data economy represents the financial potential of data. In their HorizonWatch Brief, IBM describes the data economy as the ability of enterprises to leverage big data and analytics as a corporate asset to make strategic business decisions, improve operational efficiencies, drive revenue growth, as well as create new and innovative business models. Although powerful, the data economy is still relatively new, especially to individuals outside of the data community. However, recent advancements within the data economy have the potential to provide the general public with greater access to this market.
Companies like DACONOMY are leading advancements of this nature. DACONOMY is building the world’s first universal decentralized data ecosystem. In this ecosystem, companies, individuals, and organizations can buy and exchange data, get insights, and obtain additional revenues. As these ecosystems build, individuals and organizations will find new and innovative ways to monetize and use their data.
Future of the Data
According to IDC, worldwide revenues for big data and business analytics are likely to grow from $150.8 billion (2017) to $210 billion by 2020; that’s a compound annual growth rate of 11.9%. Another independent study by PWC shows that up to $9 trillion will be invested in the Internet-of-Things (IoT) market until 2020, and estimates that up to 30 billion IoT devices will be connected; this exponential growth in data and IoT raw data will result in massive amounts of usable information which is impossible to curate manually.
So what’s next for data? Well, at this rate, data is positioned to become the world’s most valuable resource. It is considered the key to growth, success, and a competitive advantage for all businesses. Big data, business analytics, and data sets are becoming the fuel for corporate growth by allowing companies to manage resources and monitor expenditures efficiently.
