Instrumented Interconnecteds Intelligent
August, 27th 2013

Martin Fleming, , Vice President, Business Performance Services, Chief Economist, IBM

Martin Fleming, Vice President, Business Performance Services, Chief Economist, IBM

By Martin Fleming

In a recent New York Times article, reporter James Glanz asks: “Is Big Data an Economic Dud?” Mr. Glanz seems to answer his own question skeptically. The “data era,” he suggests, will not match the earlier revolutions in manufacturing, domestic life and transportation.

In addition, the Wall Street Journal posted a blog discussing that Big Data is at, or near the peak of the Gartner “hype cycle” and “big data technologies are now soon to be due for a fall into the ‘trough of disillusionment.’”

While it’s easy to be skeptical about an uncertain future, in fact, Big Data is providing business and consumer value today. Take for example the energy industry. The massive transformation of the US energy industry means that the US will soon become the world’s largest energy producer. This success is built on the use of hydraulic fracturing – or fracking – that has made vast amounts of formerly inaccessible hydrocarbons profitable to extract. Fracking technology is, in part, the result of the use of millions of sensors that generate massive volumes of data that drive and govern exploration and production.

In a related industry, electric power suppliers around the world are deploying smart grids to more effectively manage the transmission, distribution and use of power. The recent 10th anniversary of the blackout that struck the northeast US is yet another reminder that over the decade the industry has begun the process of strengthening the electric power infrastructure with increased use of information technology. Transmission and distribution systems now produce massive volumes of data that significantly reduce the probability of large scale blackouts.

In addition, smarter transmission and distribution grids have also increased the ability of the electric power infrastructure to make use of renewable energy sources, such as wind and solar. While the use of these energy sources is still in its infancy, the possibility of a significant reduction in fossil fuel use for power generation has been greatly enhanced.

There are, today, thousands of Big Data industry applications in early stages of deployment. The value these applications create is not in the data but in the use of the data. The ability of organizations to apply analytic skills to drive change and transformation is the route to value creation. The value is not in the data, per se, but in its use.

With billions of gigabytes of data coursing through the internet, it is not just the business sector benefiting from Big Data. Consumers are also benefiting.

For every successful industry application, there are thousands of consumers who are realizing substantial gains. In the energy industry, for example, the benefits from increasingly secure energy supplies and reduced prices flow, in part, to consumers.

More directly, the explosion of web-based capabilities has created an enormous increase in the variety, choice, convenience and quality that consumers now have available. The result has been a significant increase in consumer satisfaction. While businesses measure value by increased revenue and profitability, consumers measure value by the satisfaction received over and above the price paid. Everybody loves a bargain.

The vast expansion of available search tools has increased the ability of consumers to find products and services of choice with much less time and effort. Search providers – Google, Microsoft and others – use the massive volumes of data generated from search to improve and refine their offerings, algorithms and capabilities. Consumers benefit from the improved search at little to no cost to them.

Similarly, the step function increase in convenience and flexibility that online retailing has brought to consumers is also, in part, a function of Big Data applications. Successful online retailers, such as Amazon and ebay, are using Big Data applications to continuously refine available offerings, test the most responsive price points, and innovative new promotion ideas.

Recommendation engines deployed by online retailers, music sites and others that provide ideas about products that might be of interest are terrific examples of Big Data applications. These recommendation engines have been the subject of much-advanced research in machine learning and data mining. Clearly, the ability to make good recommendations can increase sales and customer satisfaction.

The deployment of Big Data remains in its infancy. With the Great Recession and financial crisis receding into the past and with the US and other economies well along the healing process, a period of stronger growth is ahead. While growth will likely remain below average for the immediate future, three or four future decades of much stronger growth is probable. The decades ahead will be one of massive global transformation with Big Data applications playing an increasing role. Ultimately, living standards will be increased for much of the world’s population.

At a similar point in economic history, John Maynard Keynes in 1931 wrote: “the standard of life in progressive countries 100 years hence will be between four and eight times as high as it is today.” After a period in which mass production technology was broadly deployed, the US standard of living 82 years later is six times higher. In the decades ahead, the use of Big Data, as part of the integration of the world’s digital and physical infrastructure, has already begun to deliver similar gains.


Follow IBM Smarter Planet on Google+

Bookmark and Share

Previous post

Next post

February 20, 2015
1:33 pm

We’re just using the new standards (which other browsers DO support) and hoping that IE catches up at some point.
If you have ever browsed the social networking site, such as Facebook for
mafia wars cheats and codes, you will find a number
of other sites that will claim to have various cheats and codes.

Unfortunately, there is no hack to get around
this service.

Posted by: king of thieves hack
February 2, 2015
6:24 am

Great goods from you, man. I’ve understand your stuff previous to and
you are just extremely excellent. I really like what you’ve acquired here, really like what
you are saying and the way in which you say it. You make it entertaining and you still
take care of to keep it smart. I can not
wait to read far more from you. This is really a tremendous
web site.

Posted by: property investments
February 1, 2015
3:49 pm

I am truly delighted to read this blog posts which
consists of lots of useful facts, thanks for providing these statistics.

Posted by: marbella proeprty
January 19, 2015
6:10 pm

Thanks admin nhiều

Posted by: coi phim sex
January 19, 2015
4:00 pm

Hire any one of those special Los Angeles limos and travel royally to a party
or a prom night or your wedding day or simply to an airport.
If you cannot afford to rent a good limo, then you might want to rethink your transportation choices entirely.

When tipping your limo driver, make sure to prepare the amount before getting off the vehicle.

Posted by: Party Bus Atlanta
December 21, 2014
10:17 am

You just need to take them in limited quantity and balance the extra caloric counts with exercise.
In order to know what will be best for you in your eating habits, I suggest that you visit a dietician that will give you
a plan based on your needs. Helping a child
lose weight by changing their diet to a more healthy one needs sneakiness
on the part of the parent.

Posted by: en iyi zayıflama hapı kullanıcı yorumları 2013
September 1, 2014
5:50 am

Realitatea dură este , cele mai multe femei nu sunt nici măcar conștienți ei realizarea acestui lucru.
Purtarea mis – potrivire , uzate sau haine nepotrivite poate distruge generozitate orice
tip captivant lui .

Posted by: Mildred
August 18, 2014
7:44 pm

It’s really a cool and helpful piece of info.
I’m happy that you shared this helpful information with us.
Please stay us informed like this. Thank you for sharing.

Posted by: Jani
July 27, 2014
2:40 am

Alright; so now үou рrobably have realized ɑ feew tɦings bʏ
the time anyone get to this specific degree օf perform (observe.
Youur oown target iѕ to squeeze playing cards in a way tɦat any rows,
posts, along with diagonals іn this grid any Һelp make aas good of a real ѕeveral-greeting card texas holdem palm ass үoս possiibly can supervise.
spider solitraire ԝill come in different modifications аnd
other quantities.

Posted by: spider solitaire Download free
July 25, 2014
1:15 pm

Right away I am going to do my breakfast, later than having my breakfast coming yet again to read other news.

Posted by: oversized chair and ottoman
July 21, 2014
8:21 am

Nobody is drawn cydia download free to you when you are constantly trying to make your ex.
You know that you still have other alternatives and weight them up and you don’t have to do next if you go along.
After all, you will be shocked that you put this behind me
so we always muster the courage to say to get ex back.
That’s to cydia download free be spared the pain some, but don’t accept anything less.

Posted by: Download Cydia
July 20, 2014
5:12 am

whoah this blog is great i love reading your posts. Keep up the great work!
You know, a lot of people are looking around
for this information, you can help them greatly.

Posted by:
3 Trackbacks
September 2, 2013
5:20 am

[...] Read on here [...]

Posted by: Measuring the True Value of Big Data | Storage CH Blog
August 29, 2013
7:01 pm

[...] Read the full article at Measuring the True Value of Big Data [...]

Posted by: Measuring the True Value of Big Data | Big Data NewsBig Data News
August 29, 2013
9:17 am

[...] brings me to the close, where I want to highlight an op-ed recently published by IBM Chief Economist Martin [...]

Posted by: Big Data Fuels Big CommerceSmarter Commerce
Post a Comment