What is Data Economy and Why Does It Matter?
Google was nearly bankrupt in the early 2000s and the board talked about selling the company. In the next 4 years, Google’s revenue rose by almost 3,590% banking on just one innovation. Amazon, at a similar time, was not making any profits. In fact, the company sold products online at a loss for quite a few years. Today, Amazon is one of the most valuable companies in the world and its CEO is the richest man. Amazon also banked on the same innovation that Google invented and applied. Both these companies, along with Facebook and Microsoft, used data as one of their assets. These corporations collected data from their users and are now using it to provide value to a variety of players in the market.
So, what is a data economy?
In simple words, it is a digital ecosystem in which various enterprises collect and pack user data and exchange it among vendors to offer value based on the underlying information. Take the example of Google’s business model. When you frequently search for cars in Google, the search engine collects this data and stores it in a central database. It next decodes this data to understand whether you are a simple car enthusiast or looking to purchase a vehicle. Accordingly, it aligns its advertisers and shows you targeted advertisements that tend to help both you as a consumer and the car seller as a business.
Here, Google itself derived value from the available data. In the market today, multiple third-party players just collect data. One such company can collect data from you and sell it directly to a car manufacturer who then contacts you directly intending to sell a car. Thus, an exchange of data happens where one collects and the other uses and again, value is driven to both consumer and business in the end. The top B. Com colleges in Delhi have already started focusing on the data economy as the ecosystem has become an integral part of the market now. One who owns the most data is known to rule an entire industry, as is happening with big names like Google and Amazon.
Why should it matter to you?
Data, in its raw form, is useless. Data scientists work through data and bring out the true meaning hidden in its depths. With both these aspects available in abundance, businesses are still struggling the apply the interpretation adequately and derive maximum value out of the collected data. This is where you can step in as a graduate of one of the top B. Com colleges. Going forward, companies will be looking for employees who can execute that final step of customer conversion and this is why data economy matters for 21st-century freshers.
The most profound effect that data economics has had is on marketing. Targetted advertisements have replaced traditional billboards and companies are investing heavily in digital marketing. Now, data may tell you that a particular set of customers are looking for a particular type of car. And it will be your job as a marketing expert to paint your company’s product in a way that resonates with that group of customers. This final step requires human creativity, closely curated by available data.
Even sales tactics have changed exponentially in the data economy. Door-to-door sales pitches are vanishing and sales meetings are increasingly becoming fact-oriented. You will need the skill to eliminate useless data based on the client you are approaching and provide facts that can convert. Companies will want to see how efficiently you can work with data and its intended value and that will decide your success in the future.
From banking to healthcare, insurance to e-commerce, every sector is now adapting the nuances of the data economy. Corporations have started realizing that this is indeed the future. The best B. Com colleges in Delhi NCR have already started training their graduates on these lines and that is where you should be headed to stay ahead of the market competition. We are now entering a world where SaaS, digital payments, the Internet of Things, and online banking will dominate. Enterprises will need more data-savvy, business experts.
Lingaya’s Lalita Devi Institute of Management & Sciences, affiliated with IP University and based in South Delhi, is a top institution where you can train as per the necessary aspects of the data economy. LLDIMS provides unmatched exposure to its students in all modern and upcoming sectors and makes them job-ready by implementing efficient skill development sessions. In LLDIMS, you study in a futuristic B. Com course and ultimately become a graduate that future companies will want to hire. Progress will not wait for anyone and you should be ready to jump on the bandwagon.
