Everywhere you turn these days, you hear this strange analogy;

“Data is the next crude oil”. Some even say, “Data is the next Gold “ 

Spoiler alert, data is not the next crude oil, or Gold or Unobtainium! Having tons of terabytes of data will not save a dying company or organization. Like everything big tech these days, there is a coordinated strategy to get businesses buying into this concept, even if it is not needed.

Don’t just take my word for it, lets do a little digging together. What is data? Why is it all of a sudden big? Data is facts and statistics collected together for reference or analysis. So big data is also big facts, big stats, big reference and/or big analysis. So what’s new? Why the fuss? Well, before social media and smart phones, we didn’t have much data to give. That’s all changed now. We now emit data doing the most basic of tasks! (It’s possible to generate data when we sneeze! Yeah, it’s possible! Your phone just needs to feel the vibration, analyses the sound, compares it to some database of ‘sneeze sound’ somewhere, confirms it’s a sneeze and store all the details about the sneeze!) We are now data machines. I am sure we would all cringe if we knew the amount of data we can or do generate. So lots of data and like crude oil companies are to just simply mine and refine this to hit the jackpot? Well not so fast. The gathering and storing of data is a tedious and painstaking job and although businesses need data in one form or another, it’s not the sole need of a business. Proponents of big data give various use cases of how it will drive your business and give you better insight but they fail to stress the fact that its implementation and execution requires very skilled sophistication. Companies like Facebook and Google have mastered the art of gathering and storing data in gigantic volumes and they have based their business model on selling products and services based on data. They have also invested heavily in technologies, software and personnel to constantly improve their processes.

One of the end products of data is reports and when refined further we get insights. Currently most companies that don’t use big data technologies generate enough reports and insights but still struggle to implement or take actions. Why? Reasons vary from firm to firm, but one factor common to most companies is the need to innovate and that has been interpreted to an investment in new technology. Using the financial services industry as an example, Banks are haemorrhaging fines for crimes to their clients and customers, but are also investing in big data technology so they can have more access to our wallet. Data gathering is about trust and/or benefits. Facebook and Google can directly gather data about us because they render a service to us while most Apple customer simply trust the company. Although banks indirectly have data about us, through credit agencies, there is a law that guides what they can do with it. Insurance firms are investing in big data, to gather pricing information that would be used in calculating a customer’s policy. Customers are now getting smarter and switching insurers every year.  Some insurers, Axa for example, have decided to be more open to their customers, instead of relying on complex pricing models. They hope to retain more customers by simply telling the truth. There is also a drive for smaller businesses. Lots of entrepreneurs want to target a niche and stick to it. We can’t place a value on personal service and until there is an algorithm or robot that can sense a prospective customer’s mood and manage business conversations better than humans, smaller businesses and openness will be the way for new and established businesses respectively.

So are you a business thinking of investing in big data? Well if you are not a team of data scientist consulting for some of the big tech firms, I will suggest you turn your focus to other problems. Embrace being open and social. Let your customers know where you are, where you want to go and how you want to get there. Show them the exact cost of your services and why you charge what you charge. Don’t try amassing data indirectly. Customers will give you the data you need if they see a benefit or if they trust you. And don’t analyze such data for profit, analyze it for service, use it to give a far better and superior product or service. Data is not the next crude oil. Think of it more like engine oil. You only need oil change after a few thousand miles, so get to work.

Views expressed are solely that of author and does not represent views of www.omojuwa.com nor its associates