Data is the New Oil in the Digital-First World

In 2006, Clive Humby, the British Mathematician, coined the phrase, "Data is the new oil". And it has been widely used to reflect the growing importance of data in the Digital-first World ever since. 

 
The gist is that data and oil hold a lot of value in the overall functioning of the world. Both are raw. Both need refinement. Both are assets used in a myriad of ways. Mostly legal, but if misused, lethal. Both need to be dealt with cautiously.  

 
Despite the metaphorical similarities, there are differences between the two as well. The main difference is that raw data, as opposed to oil, is an infinite resource. Around 2.5 quintillion bytes of data is generated every day. And more is being generated as you read this blog. Every time you click on a link, upload a document, or download a file, you add to the abundant raw data. Another difference is that data does not get exhausted after use. You can process one byte of raw data in multiple ways to accomplish different goals. And still have the raw data at the end of the day.  

Rather than debating upon the extent to which the phrase holds true, let's dig deeper into its essence, which merely emphasizes the importance of data in the digital-first world.  

Data fuels Businesses like Oil fuels the World 

The business world is fueled by data. Data is used to understand market insights, analyze and predict consumer behavior, automate redundant tasks, optimize marketing and operational strategies, make informed decisions, and a lot more. You can leverage the latest technologies like AI, Machine Learning, Location Intelligence, etc. to further employ data. 

Data is at the center of everything. Internal data backed by reliable external data gives your business direction. Collecting, storing, and sharing data across the company facilitates better functioning at every level. It allows better company-wide decision-making regarding products and customers. It allows you to identify and leverage opportunities to up-sell, cross-sell and deliver a personalized customer experience, to increase customer retention rate and ROI. 

Data allows Businesses to Drive Growth 

Data can do more than just enhance the current functioning of the business. It drives business growth. It can help introduce new products, expand services, and scale business by identifying market gaps and scope. Real-time insights can give you a better understanding of the changing market scenarios and adapt to the latest trends. It gives you an insight into what works for your customers and what doesn't, so you can make needful changes. You can execute result-oriented strategies backed by data instead of fickle opinions. 

 The Accuracy and Ethics of it 

This is much like separating oil from water, wherein you have to make sure that the data you are collecting is accurate and ethical. High-quality data leads to high-quality analytics. On the other hand, the unethical use of inaccurate data can do more harm than good. So, it’s always a good practice to consider the legal implications above all else.  

Building Data Infrastructure 

Collecting and storing data requires infrastructure, much like oil. So, building an infrastructure is the first step; a strong database backed by a reliable database management system. It could be cloud infrastructure or on-premises physical servers in your company. It will give you leverage in the digital-first world and allow you to keep your business profitable and growing. 

However, it is not as easy as it may appear. It requires experience, analysis of the business and its goals, a plan, and an execution strategy.  

At Hashbrown, we have helped businesses plan, build and manage data infrastructure. If you want to build or enhance your current data infrastructure.  Consult now!