Big Data is a new asset class

In the 2013, the world took another step towards the digital age. This is a new era of change, and the social and economic impact will be 2-3 times greater than the industrial revolution. About 90% of the world's total data has been created over the past two years. By 2020, the amount of data stored will be 50 times times larger than in 2010. Many pundits believe the Big bang is comparable to new oil, or even an entirely new asset class.

The richness of the data is stimulated by the almost ubiquitous Internet. By 2020, smartphones will connect the other 2 billion-3 billion people, billions of of mechanical sensors monitor everything from tractors to aircraft engines, and further breakthroughs in computing power will lead to a significant increase in data storage and analysis.

In such an environment, the smoothness of data management and analysis will be the key to successful organization. In 2011, Blaine Jorfessen of MIT (Erick Brynjolfsson) and colleagues published a study that found that companies using data-driven decisions were 5% to 6% higher than companies that did not use data decisions.

The disruptive effects of the new data and analysis of the hodgepodge are spreading in both the public and private sectors. The video streaming web site, Netflix, uses its vast database of users to search, watch, pause, and comment to launch a series of "Solitaire" (House of Cards) specifically designed for the Internet. The series comes with the popular director Fincher David Fincher, the popular actor Spacey (Keven Spacey), whose name is borrowed from a British pop show – they are among the top of the Netflix popularity score.

In other industries, data-driven decisions are rapidly becoming standard in product development, marketing, and customer interaction, complementing (and sometimes replacing) intuition and experience. Data-driven decisions are also used to improve supply chains, improve work arrangements, and streamline production processes.

A greater degree of disruption may occur in cross-industry areas, and the privilege of acquiring proprietary data is a new decision on the competition front. Companies with deep data sets are increasingly capable of managing markets outside the traditional main business--the leaders are already seizing the opportunity. In China E-commerce company Alibaba, small and medium-sized network operators can also apply for credit. Using trading data to lend, Alibaba has provided operating capital (more than $16 billion) to 320,000 companies, and so far has been far more efficient than ordinary banks.

The Government is also aware that data analysis can change its global status. Singapore, for example, has developed a ten-year blueprint, centred on the development of powerful information and communications industries, including data analysis. The authorities have recently implemented a public data programme that allows for easy access to a large number of government data.

But while many organizations are aware of the importance of data analysis, it is quite different to embrace the trend with much enthusiasm. Early adopters such as Amazon and Tesco quickly built up the necessary talent pool and experience, and are now working to analyze the impact on the organization to the fullest (i.e. to explore destructive opportunities). But more organizations are still in small-scale trials and hiring the first data-scientists phase.

The good news is that many companies will be able to speed up the pace of change. Talent is an exciting area, mining the potential of data analysis requires deep advanced technology reserves, there is no doubt that more than the data management and advanced analysis of the shortage of staff, the emerging "interpreter" (translator, that is, to dredge it and data, analysis and business decision-making relationships) groups.

"Translators" are critical to the complex transformation process that spans many business functions. Universities are making rapid adjustments to meet inflated demand, and many universities offer interdisciplinary projects that combine analysis and business.

The rapid progress of technology also makes it easier to realize the impact of analysis. For many companies, the biggest challenge is translating insights from statistical models into actual changes in day-to-day operations. The first line of individuals lacks the intuitive tools to link insights with action, but advances in data visualization, accelerated application development cycles and the steady consumption of technology are changing the landscape, giving managers a personalized, Easy-to-understand solution.

For instance, the climate Company (Climate Corporation), recently acquired by Monsanto, has more than 30 years of weather data, crop production data for 60, and a trillion-byte data on soil type information. The company uses historical information reserves and advanced algorithms to offer advice to farmers through intuitive portals.

Organizations are looking for opportunities to innovate, boost incomes and increase productivity, and the leadership team must make adjustments. Defining new data-driven strategies, managing large volumes of information new reserves, identifying new patterns, cross-functional management, and motivating organizations around new tasks require new management capabilities.

Companies have been innovating in an organized way. The term "Chief financial officer" was formally used by Ampex, the California electronic component manufacturer, in 1961. Now, this position is everywhere.

Taking the lead in the digital age may require new roles such as the chief digital officer, the chief analyst, or the chief data officer, although the number of companies that have already taken this approach is relatively small. In the future, the overall success of an organization requires a leader to be responsible for these functions, and he must be a trustworthy senior management team member.

Few leaders can build a management base in a new field while building teams that combine the capabilities of a variety of previously unknown types. Strategic choices face the same new frontier, as the mass media have opened up a new era in marketing, or globalization requires a radical change in organizational footprint.

In 2014 and beyond, CEOs and boards need to decide on new priorities, invest wisely, and be prepared to support experiments. In an era of great destruction, the potential benefits of those who are prepared to act quickly and decisively at the same time as they are wary of risk will be enormous.

(Responsible editor: The good of the Legacy)