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How Will Data Boost the New Economy?
The advancements of big data have enabled organizations to convert their data into a valuable source of revenue.
FREMONT, CA – Post digitalization, data is driving commerce and economy of the world. More than 2.5 quintillion bytes of data is generated by social media platforms, emails, and internet of things (IoT) devices, including smart TVs and industrial sensors. Most of this critical resource is stored in data centers and the cloud.
Organizations around the world utilize this data and draw valuable insights to gain an edge over their competition and bolster their business opportunities. However, most of the data is unstructured, in the form of raw text documents, media files, and images. Since conventional databases cannot accommodate raw data, it is difficult to analyze it using traditional algorithms. Hence, most of the information is of no use to business organizations.
Harnessing valuable insights from data is not a simple process. Organizations often face challenges when gathering, storing, and formatting data. The information will be in multiple formats and languages, not to mention, in various data centers across the world.
The monetary value of data is growing at a rapid pace. According to Gartner research, more than 10 percent of firms will have pro table business units concentrating on the commercialization of their data assets by the year 2020. However, valuing the data in organizations is a complex process since the intangible assets do not fit into the established balance sheet calculations. Although enterprises are trying to develop mainstream data valuation methods, they have not succeeded in building a standardized model.
Digital native giants like Google and Facebook are already drawing unprecedented value from customer data, leveraging it to understand the needs of their customers and offer personalized experiences. Several organizations are investigating previously collected data to draw useful insights. Data will not only enable organizations to streamline their operations but will also inspire them to find creative ways of applying live data.
The developments in big data technology have made it easier for firms to transform their unstructured data into a source of revenue. Organizations are leveraging data analytics strategies to form new business models which will help them monetize their data. Consumer goods companies are heeding the market trends and focusing on online sales and marketing strategies to woo customers. Hence, it has become imperative for them to leverage the use of data analytics to understand their consumer base.