The Algorithmic Economy and You

As users become more protective around their online privacy and question who can store information about them, there has been a fear amongst organizations that the legislation around the collection of this personal data will soon be tightened. Over the last few years, this has led to businesses embarking on a digital gold rush attempting to secure as much information as possible before it’s too late.

However, many are just beginning to realize that it’s not the data that represents the value, but it’s what you do with it. Trying to make sense of a sea of information is already proving to be quite troublesome which is just one reason we are witnessing a surge in popularity of using algorithms and data analytics to unlock those much lauded tangible benefits.

Amazon’s recommendation algorithm is probably the best-known example of how data from past purchases, interests and browsing history is fed through into an algorithm that will continuously suggest new products personalized to your lifestyle or shopping habits to keep online audiences engaged and, more importantly, keep adding items to their baskets.

Meanwhile, Netflix will happily feed your binge-viewing habit by suggesting TV shows or movies by always learning what you do and do not like so it can match content to your unique preferences. Even this article that you are reading would have passed through the algorithm at LinkedIn and posted to your timeline based on your interests and industry channels that you follow. 

Welcome to the new algorithmic economy where merely possessing data isn’t going to cut it anymore. In fact, if your meetings still involve discussing big data, rest assured your business is already getting left behind as they sit around scratching their heads wondering what they are going to do with this colossal amount of nonsensical jumbled up information.

This technology is already revolutionizing businesses across most industries and giving them a fighting chance to keep up with the incredible pace of continuous change. Algorithmic trading has forced a complete revamp to the aging structure of U.S. stock markets to turn data into actions and uncover any lucrative opportunities on the immediate horizon.

Understanding every aspect of your data is increasingly becoming crucial to staying ahead of the curve and your competition. As this need and desire to head towards this business utopia becomes stronger, we can also expect a phenomenal growth of technology start-ups offering quick solutions in the form of autonomous software.

There will be inevitable fearful comparisons with SkyNet from the Terminator movies or Hal 9000 from 2001: A Space Odyssey after our Hollywood education helped prepare us for the worst, but we need to understand that our biggest fear should be focused more on understanding our own data. Rather than concentrating on the disappearing roles from the workplace, there needs to be a stronger focus on the new skills needed for tomorrow.

For example, the humble data scientist is rapidly becoming the most sought after person in a business for their ability to transform business challenges into algorithms that use their own data to provide solutions. The creation of high-level personalized dashboards to give board members a complete overview of what is happening in their business is also making its way to the top of wish lists across the globe.

Although big data and algorithms are proving to be the perfect digital partnership, the opportunities, and tangible results can only be unlocked when they work together. As businesses rush to unleash the hidden power within their data, it’s also time for education to step up to the plate and realize that the one size fits all school of learning will do more harm than good. 

The pace of change in our world is faster than ever before as our industries continue to be disrupted by technology and continuous improvement during this evolutionary revolution that is becoming the new norm. Our education system needs to reflect these changes to help pave the way for students to enter a workplace armed with a working understanding of this much-needed skill set.

As IoT, Wearables, semiautonomous cars, and even smart homes continue to gather an unprecedented amount of data, we need to embrace and extend the exponential change to fully appreciate the power that lies in both your personal and businesses data.

What challenges are you facing with data and personal information? Please let me know how you are planning to stay ahead of the curve by commenting below.

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Thanks for reading. You can find my previous LinkedIn articles here, and you can also connect on Twitter at @DanielBurrus

DANIEL BURRUS is considered one of the World's Leading Futurists on Global Trends and Innovation, and is the founder and CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology driven trends to help clients understand how technological, social and business forces are converging to create enormous untapped opportunities. He is the author of six books including New York Times & Wall Street Journal best seller Flash Foresight.   

Daniel Burrus is also the creator of  The Anticipatory Organization? Learning System, a training process for executives and their teams to develop the skills to accurately foresee and take critical actions before disruption strikes.

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