Molly is a golden retriever belonging to Paul Sonderegger, Oracle's Big Data Strategist. In a series of short 3-5 minute webcasts, Paul uses Molly as a neat way of introducing the topic and explaining in simple terms the three principals of Data Capital, and how companies can exploit the value of data capital to drive new business opportunities and transformation.
1. Data comes from Activity. Pet suppliers all want Molly’s data because it isn’t just a record of what she did today. Or didn’t. It’s raw material for creating new digital products and services. And if you’ve got the data, your rival doesn’t. This same battle surrounds every plane, train, automobile and anything else in the Internet of things. Plus, every kind of financial trade, insurable risk, and kind of medical care.
2. Data tends to make more data. Take a company that collects Molly’s – and all of her friends’- data through GPS trackers and has a mobile app that alerts when a dog wanders out of its safe zone. They can see which features get used. Are there differences between owners of different breeds? In the city versus the country? These data-fuelled feedback loops make it faster and easier for the company to learn what their customers like and don’t like, intensifying competition.
But even this isn’t the real action. Algorithms are where it’s at – data-fueled learning for people and machine-learning beyond human scale plays out in e-commerce recommendations and online ads, as well as fraud detection in payment systems, inventory allocation in robotic warehouses, and dynamic pricing in parking meters. Companies must develop both a data lab and the discipline of rapid experimentation with it.
3. Platform tends to win. Molly is sweet. And a battleground. Companies are fighting over her data in order to be the platform for digital pet services. But what does that mean, exactly? All the chew toy, dog vest, and grooming supply makers. Plus the vets, animal hospitals, dog boarders, groomers and more. A platform is the thing that sits in between them and makes it easier, cheaper, or just more convenient for the two sides to do business. It reduces transaction costs in a two-sided market.
With the capture and use of more data in more daily activities, platform competition is coming for industries that haven’t seen it before. This has already happened in book retail, urban transportation, and job hunting. Industries like insurance, healthcare, and industrial manufacturing have to get ready.
These videos are recommended viewing for you to start a high-level conversation about the value of exploring and exploiting Big Data, and connecting Big Data Analytics to strategic digital transformation projects.
And once you've started that conversation, check out Oracle Analytics Cloud to find out how you can tell your own business story—to the power of data.