Data is a valuable resource, and its already starting to become commoditized. Institutions that can collect, organize, and distribute data are making significant profits, and data technology is making its way into the hands of less and less tech-savvy users. At the same time, improvements to our technology and the increasing reach of that technology is making it cheaper to execute tasks that seemed unthinkable just a decade ago.
So what does this mean for the future of that data industry and for consumers as a whole?
Data Commoditization
We predict these five developments from the commoditization of data in the future:
1. Accessible predictive analytics.
Currently, predictive analytics is a branch of analytics that exists as more of a wish-list item than a feasible or reliable institution. It exists, and is in use by many companies, but it relies on a combination of state-of-the-art artificial intelligence and human data analysts to make it accurate (and allow it to make actionable, clear predictions). Predictive analytics also isnt something available to the general public, or even small business owners with limited budgets and resources. However, as our access to data technology begins to scale, predictive analytics will become more accessible and may even become a baseline package for most analytics services.
2. Publically available data services.
A couple of decades ago, the internet was a new development, and only the most technologically skilled people were able to create, design, and manage their own web pages. Today, users can easily design a website using a free template and choose a hosting provider from a list of inexpensive, reliable options. In the near future, data services may mimic this type of progression, evolving from being a process available only to niche specialists to becoming an inexpensive, heavily automated service thats available to even the least niche-savvy users.
3. Data as a business requirement.
Were already in the middle of the information age, and data has become more important to businesses than ever before. In the near future, data will become such a commodity that its a bare minimum requirement for businesses to be competitive. Think of it in terms of branding; no business can exist without some kind of branding to identify it, characterize it, and differentiate it from the competition. It was possible to create a business without a data strategy back in 2000, but in a few years, it will become unthinkable.
4. Data departments.
The role of Chief Data Officer started to emerge as early as the 1980s, but its only within the past two decades that it started becoming commonplace for major institutions to appoint someone to the position. Now, data is starting to become a focal point of entire departments within organizations, operating separately from technology and marketing departments, which rely on data heavily to perform their own unique functions. In this way, data mining and information trading will become more currency-like, relying on skilled and knowledgeable professionals to navigate the waters.
5. Subdivision of data categories.
With the advancement of data, well also see major subdivisions into different sub-types of data. Big data will become universally available, and both professionals and companies will be working nonstop to push the limits of more specific niche applications. These might include things like fast data, which emphasizes transactional or processing speed above all else, or actionable data, which attempts to translate data into actionable insights or conclusions in one fell swoop. There are no limits to how these data categories may branch in the future.
Living in the Data Age
Weve already entered the data age, where data mining and management has become inexpensive, available, and commonplace, but we still have a long way to go. As the heights of todays data technology become the commoditized, universally available fodder for tomorrow, our top data technologists will turn their attention to even more advanced forms of analysis.
As a business owner or even as a consumer, your job will be to keep up with the latest trends, and take advantage of the increasingly available information and analyses that come as byproducts of our technological advancement.
