WordPress: users publishing more than 1million pages daily.
According to IBM: we create 2.5 quintillion bytes of data every day (a number with 18 zeroes after it) = 2.5 million hard disks at 1TB each
Data Is The New Oil
It is important to underline again that, since so much of what we do today is in a digital environment, a lot of this scale and speed in data is being propelled by our own collective behaviors and inputs. So, imbedded in this vast, rich mass of raw data are our deepest likes, dislikes, thoughts, interests, wishes, goals, needs, etc . The value of this kind of information and reconnaissance has already likened big data to being referred to as the “new oil” and a main driver of future economic activity. As such, a massive wave of investment and innovation is being focused on analyzing these large reams of data, distilling insights from them, and developing highly targeted courses of action. The evolution in techniques of data analytics have now made it possible to help connect the dots among diverse data sources, conduct better searches, provide real-time analysis, connect prospects to products, and automate tasks.
So, if big data is the new oil, artificial intelligence and machine learning are becoming the new combustion engine. If data is not refined, it cannot be used. As further explained in a recent World Economic Forum article: “machine learning is a way to use algorithms and mathematical models to discover patterns implicit in data. The machines then use those often complex patterns to figure out on their own whether a new data point fits, or is similar, or to predict future outcomes. Furthermore, new machine learning models have emerged recently that seem to be able to take better advantage of all the new data. For example, deep learning enables computers to ‘see’ or distinguish objects and text in images and videos much better than before. Advanced algorithms are even intersecting with behavioral insights to positively or negatively reinforce desired behavioral outcomes!”
Implications And Opportunities
It is clear that for all size businesses, in any industry, a huge competitive advantage awaits firms that can harness this data resource. Providing deeper insights and personalized engagement opportunities with prospects and customers, it can potentially lead to better closing rates, more meaningful client relationships, and stronger retention for financial advisors. This in turn will be transforming business thinking and decision-making as big data can be made immediately actionable and help advisors become more client-centric. This will be a major change in financial services business mindset. The key is to be clear about what your specific strategy around mining and analyzing big data is: What data needs to be collected? Why are you collecting it? What decisions will you make based on it? Another reality emanating from all this is the growing need for financial advisors to partner with tech firms to help direct and guide these new data technologies to advisors’ business needs. The goal is to reframe big data as a practical way to make more strategic decisions and engineer better client engagements and business performance.
Bottom-line: big data is growing exponentially, contains competitive advantages for early adopters, and will transform the future of the financial services industry.
The Institute for Innovation Development is an educational and business development catalyst for growth-oriented financial advisors and financial services firms determined to lead their businesses in an operating environment of accelerating business and cultural change. We position our members with the necessary ongoing innovation resources and best practices to drive and facilitate their next-generation growth, differentiation and unique community engagement strategies. The institute was launched with the support and foresight of our founding sponsors - Pershing, Voya Financial, Ultimus Fund Solutions, Fidelity, and Charter Financial Publishing (publisher of Financial Advisor and Private Wealth magazines). For more information click here.