The Data Driven Economy
Extracting Value from Intangible Assets
Over the last decade, data-driven organisations have become some of the most valuable companies in the world. To illustrate my point, in 2001, the top 5 most valuable companies by market capitalisation were drawn from; the Retail sector, Oil & Gas, Banking and Industry. Only one firm Microsoft was from the technology sector.
By 2016, all top 5 positions were occupied by technology firms, that emerged as a result, of the on-going maturation, of the global data-driven economy.
Apple, a technology company, that combines, hardware, software , data and devices to deliver value to businesses and consumers. Currently is the most valuable company in the world.
This provides compelling evidence, for managers incumbent within industries, most affected by the digitisation of their business models.
To leverage data, to optimise business intelligence, to provide better services, to customers, and to develop new products.
Courtesy of: Visual Capitalist
With organisations exploiting only 1% of the data available to them. Successful companies are engaging in digital transformation programmes, with clearly defined objectives.
Supported by the necessary technology stacks, architectures & business applications. That will enable organisations to compete in tomorrow’s world today.
New market entrants, across a multitude of industries are collaborating with established players. To gain access to their customer data.
To illustrate, in the retail banking industry, new government regulation such as the Payments Services Directive II (PDS2) and Open Banking Standards.
Provides a framework for the use of new technologies and customer data. Banks have been incentivised to give 3rd parties access to customer accounts and transaction information.
Creating an environment, in which fintech start-ups such as MoneyHub, and Ipagoo, are able to offer enhanced financial and non-financial services. To customers that have opted- in within the marketplaces managed by the banks.
Thus new government regulation is eliminating some of the impediments to, the development of innovative data-driven applications in the business to business and business to consumer space.
Digital Disruption at a Departmental Level
So, far, we've considered, quite superficially, the impact of the migration of economies, from analogue to a data driven economies. At an industry level.
Let’s see how this transition is affecting, the manner in which marketers execute on their marketing activities.
For example, in marketing planning, there, are real-time applications, that can be deployed, to gain insights into;
How potential customers search for their products and services as they migrate through the customer journey
Where demand is located geographically
If earned, owned or paid media is utilised during the search process
The identification of new product development opportunities
Competitors considered during the customer journey
Hence, using the hotel industry as an example. For the search terms "Top 10 Luxury hotels", "Top luxury hotels" and “Small Luxury Hotels” over a time horizon of 5 -years. From June 2012 - June 2017, google trends was used to determine;
Where demand for the unique experience, associated with “luxury hotels” was originating from world wide
The most popular online travel agencies (OTA), and aggregators incorporated by potential customers into their customer journey
If consumers were searching for alternatives such as Airbnb, to hotels for their luxury holidays
The level of granularity delivered by applications such as Google Trends, Moz and Conductor Search for marketing planners is immensely valuable.
These applications could only arise, due to the availability of the immense amount of data, generated by the interactions of consumers, via their mobile devices with the internet.