Data as the Modern Currency: Insights into the Data Revolution
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The Evolution of Data as Currency
In today's world, data has taken center stage, increasingly recognized as a crucial asset akin to currency. This isn't a new concept, yet its significance becomes clearer with each passing day as technology and data intertwine seamlessly into our lives.
Reflecting on telecommunications, it's astonishing to consider that 40 years ago, mobile phones were virtually nonexistent. The first commercially available mobile phone, the Motorola DynaTAC 8000X, launched in 1983 for the equivalent of £8,600 today. (1, Wikipedia)
By the 1990s, those who owned a mobile phone could only make calls and send basic texts.
Fast forward to now, and mobile phones have transformed into powerful handheld devices, offering nearly 80% of the functionality of a typical home computer. Tasks like transferring money, booking flights, and ordering groceries can all be accomplished through a simple app on your phone, which is now practically an extension of ourselves.
Additionally, users can even engage in stock trading with just a button press, showcasing the limitless possibilities. However, all these actions generate a data trail that presents both opportunities and challenges for individuals and businesses alike.
The Strategic Role of Data Management
From a business standpoint, data is essentially the new currency—a resource that must be effectively managed. Companies are investing heavily to enhance their data management systems, ensuring they capture valuable information, such as customer details (e.g., Full Name, Address, Country of Birth), to drive business growth.
Moreover, it is vital that this data is routed efficiently to relevant systems for storage and retrieval. The true value lies in the insights derived from this data, which are crucial for informed decision-making. Enhanced intelligence leads to better decisions, improved client services, and ultimately, increased revenue.
The Challenge of Skilled Professionals
What is essential for businesses to refine their data processing capabilities? Skilled professionals—specifically, data experts who can diagnose issues within existing systems and propose effective solutions. Unfortunately, these experts are still scarce, as evidenced by the average salary for a Data Consultant, which hovers around £100,000 annually, nearly double that of the average public sector worker at £52,500. (2, 3, CW Jobs)
In response to this industry demand, universities are expanding their programs to include degrees in Data Science and Big Data technologies. Prestigious institutions like King’s College London, The London School of Economics, University of Bristol, and University of Edinburgh are now producing highly qualified data professionals. (5, Google) This academic shift indicates a promising future for the data profession.
It is important to note that Data Science is a distinct field, separate from IT or Computer Science. The emphasis is on treating data as an informational currency, with technology acting merely as a facilitator for data flow.
With the exponential growth of data, processing regulations have also evolved. Many organizations are undergoing transformations to ensure compliance with regulations like the GDPR (General Data Protection Regulation), which took effect on May 25, 2018. (4, GDPR) This regulation outlines strict guidelines on how personal data should be handled.
Having worked in this area, I can attest to the substantial investments that were made in the Financial Services sector for GDPR compliance between 2017 and 2018—certainly not a negligible amount.
Conclusion: The Growing Need for Data Professionals
The takeaway here is the increasing demand for data professionals who can support organizations in enhancing their data management capabilities. My background in Business Analysis has exposed me to numerous data-driven projects within Financial Services, where companies are upgrading their data management infrastructures.
In essence, without the right systems and knowledge to leverage data effectively, it holds little value. Think of it like having a gold mine without the means to extract the precious resource—it's potential remains untapped.
References:
- Wikipedia: Motorola DynaTAC
- CW Jobs: Average Data Consultant Salary
- CW Jobs: Average Public Sector Worker Salary
- GDPR
- Google: Data Science Degrees in the UK
I hope this discussion has provided valuable insights. I welcome your thoughts and experiences, so feel free to reach out. Let’s connect on Twitter at @petru_vdwfelix and subscribe to DDIntel for more updates.
Chapter 2: The Value of Data in Today's Economy
The first video titled "Data is the New Currency w/ Overwatch | Next Week's Life | Episode 35" explores how data has transformed into a crucial economic asset.
The second video, "Data: The New Currency," delves into the implications of viewing data as a valuable resource in modern society.