VEXING PROBLEMS
The total amount of data is not only growing exponentially, it is also more and more siloed, insular, diffused, and resident in countless disparate systems. Additionally, individuals and businesses don’t know where much of their data is located or who is accessing the data and with what permissions. How can small businesses and individuals understand, protect, and monetize these data? Winners are already engaged and implementing their big data strategies. Most importantly, if you do not learn how to generate and utilize Precision Data, big data strategies are impotent and otherwise useless.
DATA OVERLOAD AND INACCESSIBILITY
Our world is cluttered and overpopulated with data and devices respectively. These problems are intensifying daily and pushing access and understanding to life-saving individual, actionable insights further away and out of reach. Everything we do today generates data and that data is utilized, with and without our knowledge and permission. Every search, choice, selection, transaction, communication, and behavior, with every person and company; from every device we utilize, in every place we access them, is observed, recorded, analyzed, and somehow optimized before it is presented back to us (or worse, used without us knowing) in ways we do not even think about.
The amount of data we produce every day is truly mind-boggling. There are 2.5 quintillion bytes of data created each day at our current pace, but that pace is only accelerating with the growth of the Internet of Things (IoT). Over the last two years alone 90 percent of the data in the world was generated. This expanse is what causes the Big Data Paradox (make a hot link).
Health and happiness in the service economy does not translate well into the digital economy.
Symptoms of the FAILING SERVICE ECONOMY
Like the agriculture and industrial economies before it, the service economy is in the final contraction stages. Only those businesses that successfully transition into the digital economy, using big data strategies, will succeed.
Symptoms:
- Declining Revenue
- Shrinking Margins
- Increasing Fixed Costs
- Business Consolidations and Roll-up
- Fragmentation and Specialization
- Customer/Patient Attrition
- Relegated to “information broker” status
- Increasing Customer Acquisition Costs
- >Increased competition
- Difficulty in differentiation
- Brand Dilution
- Low valuation multiples
CONSTRAINTS & LIMITATIONS
of a Service Economy Business Model
- Physical location and time
- Billable hour model
- Unpredictable revenue
- Limited Addressable Markets
- Fixed and increasing overhead expenses
- Humans become information brokers and redundant
- Application & Implementation Continuity of business services
- Low single digit or fractional valuations
- High friction to scale business
ATTRIBUTES
of a successful Big Data-Digital Business Model
- No geographic limitations to access customers
- Leverage time to many or unlimited number of customers
- SaaS — residual/recurring revenue models
- Platform business model to leverage others’ fixed costs
- Rapid scale and consistent deployment
- Enabling technologies-humans do super-human work and machines to optimize work with human assistance
- Virtual and remote delivery models
- Replace Information Brokers
- Artificial Intelligence and deep learning applications
- Big Data Strategy
- Unique differentiation factors
- High Valuation Multiples