Welcome!

@BigDataExpo Authors: Yeshim Deniz, Carmen Gonzalez, Jnan Dash, Liz McMillan, Pat Romanski

Related Topics: @BigDataExpo, Cognitive Computing , @ThingsExpo

@BigDataExpo: Blog Feed Post

Data Is a New Currency | @CloudExpo #BigData #BI #AI #ML #Analytics

Data is the new Oil

This guest blog is provided by Brandon Kaier (@bkaier). Brandon has more than two decades of experience in the IT industry as a transformational leader.  Kaier is responsible for setting the strategy, defining the service line offerings and capabilities as the Field CTO for the North America. These responsibilities include bringing net new products and solutions to market with a focus on the deployment of solutions enabling analytics and agile application development. Most recently Kaier held positions on Technical Architecture team and Strategy and Direction team for Dell EMC’s Data Lake solutions. Kaier also brings experienced based, Dell EMC IT best practices, Big Data and Transformational strategies to Dell EMC customers.

“Data is the new Oil.”

Has anyone not heard this phrase yet? This analogy was first presented by Clive Humby at the Association of National Advertisers (ANA), Senior Marketers Summit at Kellogg School in 2006.

If you have been following and or are active in the analytics and data science community, I am sure that you have, and honestly I would hope so. This was not the first time we heard the phrase “data is the new oil,” and it certainly will not be the last. Interestingly enough this exclamation is actually at least ten years old. For example, marketing commentator Michael Palmer blogged back in 2006: “Data is just like crude. It’s valuable, but if unrefined it cannot really be used. It has to be changed into gas, plastic, chemicals, etc., to create a valuable entity that drives profitable activity; so must data be broken down, analyzed for it to have value.”

I really like Michael’s extended comment here because I think that it is much needed clarity. The difference between a barrel of oil and highway traffic is one of energy. A barrel of oil had a ton of Potential Energy and burning that oil as fuel creating the movement of the cars is its conversion to Kinetic Energy. (Definition: Kinetic Energy is the energy of motion; the movement of objects. Objects that are not in motion possess Potential Energy, which is converted to kinetic energy when some force acts upon the object to set it in motion.) This is the essential challenge of analytics. Data sitting on your data center floor is generally valueless except for the time at which it was created. Let me be clear, this is not to say that the data isn’t important. It is, you need it for all sorts of things; GRC, management and compliance reporting, order tracking, and what not, but it is no longer creating value. Data is like oil in that it retains a ton of Potential Value. However, it requires analytics to create motion in the business to find something actionable or decisions to optimize in order to realize that value.

Oil Data
Oil has Potential Energy Data has Potential Value
Gas or refined Oil has more Potential Energy than Oil by volume Data Science or refined Data increases the Potential Value of Data
Burning Gas to create motion converts Potential Energy to Kinetic Energy Analyzing Data to create Analytic Insights converts Potential Value to Kinetic Value
Oil is raw and of little direct use Data is raw and of little direct use
Oil is refined into fuel; powers the economy and drove the 3rd Industrial Revolution Data is refined by analytics to power the business and shall fuel 4th Ind. Rev.

So the really interesting question to ask now is “What is the economic value of data?”

There is this idea that currency, once spent does not lose value, it retains it. It retains its potential energy or potential value, in other words…..

Think of a $10 bill.

You may take it and give it to Starbucks and while, yes, you are out that $10 the $10 bill is still worth well, $10.

Starbucks is going to use that $10 to buy coffee from a distributor.

Who in turn buys coffee from a grower, who might then use it on food or maybe even  a Starbucks.

When you insert something, a new demand, into a circular flow like this then you create an economic concept called the Multiplier Effect. This is a concept that countries use to consider how they invest money and how that investment, by having it distribute though a supply chain, like the example above, will impact the economy of their country.

Multiplier Effect Definition: “An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.”

Multiplier Effect is a well-established economical principal first postulated in 1939 and there are standard formulas to apply this effect based on different kind of investments.

To overly simplify the process it basically equates to 4:1 (Note: the actual multiplier is dependent upon the marginal propensity to consumer (MPC). See here for more details. For every dollar put into the supply chain you are creating $4 of economic value. Whoever they invest in or award a contract to has to buy supplies from someone else and they buy other materials from a third company and so on down the line.

So with that in mind, how does Multiplier Effect impact Data in a modern organization? Bill Schmarzo is noted as saying that, “Data exhibits a Network Effect, where data can be used at the same time across multiple use cases thereby increasing its value to the organization.” I would contend that this network effect is in fact the same thing principally as the Multiplier Effect.

We have seen this Network Effect – the Multiplier Effect – play out within our customer base. Let’s assume that I have three use cases, A, B, and C. Let’s also assume that independently those three use cases have a value of 5, 3, and 2 (high to low) respectively. Now we have one of the data scientists apply the results of use case B to use case C and we find that the value of C goes from 2 to 4. This is what I mean by the Network Effect is similar if not identical to the Multiplier Effect; investment on one side of the value chain has cascading impacts to other parts of the value chain, just like my $10 bill.

I have found some companies who have recognized this inherent value in data sharing and are starting to form ecosystems where the only cost to get into the ecosystem is the contribution of your data. Take a home hospice care company. Their employees have very stressful jobs with a lot of time in their car going form patient to patient. Would it be valuable to work with other companies to share information that would make the lives of their nurses and home care employees better? We are seeing one such case starting to come together in the UK.

If seemingly disparate companies can find value to their business through the sharing of data what is to stop one company from asking to exchange hard tangible goods for data.

I think that companies are going to have to make a decision and I think that it is going to be one of three choices. Fundamentally, they can continue to treat data as a cost to be minimized and as a consequence will relinquish the value in the data to more aggressive partners and competitors at the risk of market share. They will buy into the notion that data is the new oil and as a result treat data like a tangible asset with all of the associated processes; supply chain management, asset capitalization or depreciation one would normal use with a physical asset. This approach will yield results and positive outcomes to the business but will fail to take real advantage of the asset.

The final option, consider data to be in fact a new currency, Leverage the Multiplier Effect internally, then expand it to include value chain partners, and then one day soon, I think, exchange or barter data and the associated analytics for goods and services. Conceptually, this isn’t a new idea. Back in the 80’s, when Point of Sale (POS) scanners were first making their way into retail stores, in many cases those scanners were being given to the retailers, “for free”, in exchange for all the data from those POS devices. If you were to consider what GE knows about jet engines how much longer will it be before GE uses or gives away its data to the supplier of fuel valves for the engine in exchange for those valves?

The post Data is a New Currency appeared first on InFocus Blog | Dell EMC Services.

More Stories By William Schmarzo

Bill Schmarzo, author of “Big Data: Understanding How Data Powers Big Business”, is responsible for setting the strategy and defining the Big Data service line offerings and capabilities for the EMC Global Services organization. As part of Bill’s CTO charter, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He’s written several white papers, avid blogger and is a frequent speaker on the use of Big Data and advanced analytics to power organization’s key business initiatives. He also teaches the “Big Data MBA” at the University of San Francisco School of Management.

Bill has nearly three decades of experience in data warehousing, BI and analytics. Bill authored EMC’s Vision Workshop methodology that links an organization’s strategic business initiatives with their supporting data and analytic requirements, and co-authored with Ralph Kimball a series of articles on analytic applications. Bill has served on The Data Warehouse Institute’s faculty as the head of the analytic applications curriculum.

Previously, Bill was the Vice President of Advertiser Analytics at Yahoo and the Vice President of Analytic Applications at Business Objects.

@BigDataExpo Stories
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
"Peak 10 is a national cloud data center solutions managed services provider, and part of that is disaster recovery. We see a growing trend in the industry where companies are coming to us looking for assistance in their DR strategy," stated Andrew Cole, Director of Solutions Engineering at Peak 10, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.