Big data is the oil of the 21st century….in more ways than one.
To begin with, it’s huge, it’s talked about, and it’s everywhere! Going beyond that, data by itself is inherently dumb. It cannot actually tell you anything unless you know how to use it. Oil is useless thick goop until it’s refined into fuel. See the pattern?
Big data’s version of refined fuel – proprietary algorithms that solve specific problems that translate into actions – will be the secret sauce of successful organizations in the future. The next digital gold rush will be focused on how you do something with data, not just what you do with it. This is the promise of the algorithm economy.
Where does this ultimately lead? Software that thinks and does. Cognitive software that drives autonomous machine-to-machine interactions. Artificial intelligence.
Today, the opportunities for organizations and technology providers are enormous.
The algorithm economy
This will inevitably create entirely new markets to buy and sell algorithms, generating significant incremental revenue for existing companies and spawning a new generation of specialist technology start-ups.
Imagine a marketplace where billions of algorithms are available, each one representing a piece of software code that solves a problem or creates a new opportunity from the exponential growth in the internet of things. As apps have revolutionized human to machine interaction, we’ll see the algorithm economy power the next great leap in machine-to-machine evolution.
Products will no longer be defined by simply a barcode or label, but by the sophistication of their algorithms. Organizations will be valued based on the actual algorithms that turn that data into actions and ultimately customer impact. It is now about more than just the data.