A necessary step in becoming a Digital Enterprise, Data Aggregation

The PC, the Internet, and now, the Data (Era)

If you are a business executive, you hold a management position or just like to read business content, I am sure, you must be tired of hearing about Digital Transformation. There is no doubt that we are experiencing a change of paradigm in the world we live in (I have written about it before). Many, name it the Fourth Industrial Revolution, and date its beginning to the introduction of the internet in 1990s. Nonetheless, I like to divide it into several eras: 

1.     The PC Era (1970s) 

2.     The Internet Era (1990s) 

3.     The Data Era (2000s)

The first two are quite obvious, and I believe few people can actually argue against the impact of the mass introduction of the semiconductor technology, in 1975 by companies such as Intel, Microsoft or Apple, and the TCP/IP Protocol, in the 1990s with the rise of companies such as Google, Amazon Facebook. On the other hand, the third, and true digital era, is a bit trickier, but not less real. This new millennium has brought with it many changes: the PC is now a total commodity, as it is the internet, or a smartphone; connected houses, connected cars, and even connected industries or offices are every day more common among us. And I bet, we will get to connected humans and connected animals, pretty soon (but let’s discuss this another time). 

Back to our topic, what is that really changed in the 2000s, that is changing our world, our societies, our corporation? 

Since 1971 until 2016, the number of transistors in a dense integrated circuit (a chip), have been doubling every two years, this is known as the Moore’s law.But has been in the 2000s that we crossed a key threshold, the cost of storing data became cheaper than the potential value of the data. This change is what gave birth to Big Data and, combined with the exponential increase in computational power, is allowing the rise of AI (with all its derivatives). Finally, since 2007, we are experiencing the rise of Blockchain, which is nothing but a new protocol that allows data to be validly traceable online.         

A simple way to explain these three eras is:

 First, everyone got a tool (the PC), then we connected these tools through a common network (the internet), and now we have the ability to trace every (online) interaction between different tools and improve given the results.

Although it is an oversimplification, it is valid to understand the importance of data, and the main source of it in the world, the internet. 

How do I start becoming truly digital?

You might agree or not agree with my definition of the Digital Era, regardless, I am sure, you are wondering, what are the implications for you and your company? Well, the truth is that unless you have a data aggregation platform, you need to get one, to start claiming that you are a Digital Enterprise (or at least you started the Digital Transformation path).

Now you might think that I am going to bold but understand that if you are not currently gathering data both internally and externally, from the digital interactions of your employees, of your clients, and your competitors… you are missing most of their interactions that happen in the digital world. And by doing so, you are losing money every day, because data is value. And even worst, if your competitors are ahead of you they do know what your clients are doing, what you are doing. It is like if you compete in archery in a world where everyone suffered from myopia. But studently, eyeglasses were invented, and you were not using them because you always saw the world blurry, probably if your competitors start using them you will be in big disadvantage. 

Data aggregation is the first step in Digital Transformation, and it is so, not because you cannot do other changes first, but because it cannot wait, every second that passes, you are losing some data that you will probably never be able to get back. 

Finally, let’s divide this in its key parts: 

1.    Collect your internal data

2.    Aggregate the data from external sources

3.    Create a Data Lake 

4.    Transform the data you gather into information with impact in your company

Internal Data

To collect your internal data, you need to identify where your employees interact, where the value is created in your Digital Value Chain, where your customers interact with your systems. But the good news is that all is under your jurisdiction. 

External Data Aggregation

Aggregating external data can be a bit more complicated especially when you want to aggregate data from your competitors, and they probably do not like that. Nonetheless, the reward will offset the complications. You will be able to know better your competitors, your clients, his clients (your potential clients), yourself and the opinions of the market about you (just to mention a few). 

The Data Lake

Building a Data Lake is also key, this will be the super brain that will eventually lead your corporation and will let you be a true data drive company. The importance of the Data Lake makes its definition a life changing event, therefore, give it the investment and the time that it requires. 

Data Driven Culture

Finally, you will also need to change the culture in your company towards a data driven company. This is a must and all departments will eventually be able to benefit from improved decision making thanks to data. Once you have the data, you need to understand how to use it, but at least you have it and every day you will have more.    

At Enzyme Advising Group we have helped several clients stablish their Data Lakes or Data Aggregation Platforms. If you want your next move to be the first step towards becoming a Data Enterprise, do not hesitate to contact us and let us work together to see a clearer World.