“[Big Data] make business strategy interesting again”

EVans_TED_talk

TED posted a talk by Philip Evans about how Big Data will transform the business strategy. The screen shot above that I made on the 7:33 minute of the talk implies by Evans “a hundredfold multiplication in the stock of information that is connected via an I.P. address.”

“Now, if the number of connections that we can make is proportional to the number of pairs of data points, a hundredfold multiplication in the quantity of data is a ten-thousandfold multiplication in the number of patterns that we can see in that data, this just in the last 10 or 11 years. This, I would submit, is a sea change, a profound change in the economics of the world that we live in.”

But what his talk is really about is that technology (he gives an example of cost and speed of genome sequencing) is driving the typically vertical structure of businesses to becoming more horizontal, when cooperation is needed to achieve the big data scale.

“That implies fundamental changes in how we think about strategy. … It means, for example, we need to work out how to accommodate collaboration and competition simultaneously. Think about the genome. We need to accommodate the very large and the very small simultaneously. And we need industry structures that will accommodate very, very different motivations, from the amateur motivations of people in communities to maybe the social motivations of infrastructure built by governments, or, for that matter, cooperative institutions built by companies that are otherwise competing, because that is the only way that they can get to scale. … These kinds of transformations render the traditional premises of business strategy obsolete.”

In this light, one might start thinking differently about business endeavors and personal (horizontal?) strategy of contributing to the society.

 

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