Datafication: Transforming Life into Data

Datafication is a fascinating technological trend that involves turning various aspects of our lives into data, which is then transformed into valuable information. Let’s delve into what datafication is, its impact, and some examples of how it’s applied across different domains.

What Is Datafication?

Datafication refers to the process by which subjects, objects, and practices are transformed into digital data. As digital technologies, digitization, and big data continue to evolve, datafication has intensified, capturing more dimensions of social life in digital spaces.

The Rise of Datafication

Kenneth Cukier and Viktor Mayer-Sch?nberger introduced the term “datafication” to the lexicon in 2013. Prior to this, datafication was associated with analyzing representations of our lives captured through data, but not on the present scale. The impact of big data and predictive analytics has significantly expanded the scope of datafication.

Key Differences: Datafication vs. Digitization

While digitization converts analog content (such as books, films, and photographs) into digital information (a sequence of ones and zeros), datafication goes beyond this. It encompasses all aspects of life, transforming them into data. Once we datafiy things, we can repurpose the information and create new forms of value.

Examples of Datafication

1. Human Resources (HR):

Data obtained from mobile phones, apps, or social media usage is used to identify potential employees and their specific characteristics, such as risk-taking profiles and personality traits. Traditional personality tests may be replaced by data-driven insights. New personality measures can be developed based on this data.

2. Insurance and Banking:

Data helps understand an individual’s risk profile and likelihood to pay a loan. Customer behavior data can also be used for developing personalized financial services.

3. Customer Relationship Management (CRM):

Industries use datafication to understand customers better. Analyzing language and tone from emails, phone calls or social media provide insights for tailored interactions.

4. Smart Cities:

Sensors in smart cities collect data on transportation, waste management, logistics, and energy. For example, street lamps in Amsterdam can be dimmed based on pedestrian usage.

5. Design and Engineering:

Data collection and processing optimize shape design and other physical outcomes. Engineering tools tie data to formal, functional, or other physical media results

Case Study: Datafication and Netflix

Netflix is a prime example of how datafication has transformed business models. By analyzing user behavior, preferences, and viewing patterns, Netflix tailors content recommendations, optimizes streaming quality, and even produces original shows based on data-driven insights.

In summary, datafication is reshaping our world, from personal interactions to urban planning. As technology advances, understanding and harnessing data will continue to be crucial for innovation and progress.