BIG DATA is not saving the world and it will not save the planet. Media outlets tend to promote any technology that integrates Big Data as a solution to transform businesses and make them grow exponentially, but nothing further from reality. Also, Big Data is promoted as a way to improve environmental information, and affect positively in a sustainable transition, as smart tools, but this is just toxic marketing.
Big Data tools are changing the business environment and its certainly affecting everyone´s life, but its clear that Big Data is not going to save the planet or help revert climate change. Scientific information is manipulated constantly and data cooking is one of the top trends for the next decade. An avalanche of negative data is very unlikely to be heard or even published.
The more machines and servers in the planet, the more e-waste and a new level of pollution upgrade, infinite electronic gadgets that use Big Data, are advertised as changing devices for people´s lives and ecosystems, promoting miracles, instead of informing the clients about their environmental production footprint, electromagnetic waves release and the product lifetime or if the product can be repaired or recycled at all.
BigData competitive advantages mainly promote the growth of the already massive tech giants, like Amazon, Alibaba, Google, Facebook, Microsoft, Apple and few other companies. The digital economy and all the analytical potential it brings, ends up being monopolized by these few companies, which control most of the servers, the data generated by users online, and are the digital marketing powerhouses that channel traffic worldwide by their monopolistic and dominant use of Big Data, controlling and building a collective digital psychology.
The real advantage for small and medium size companies that adopt Big Data and Data Architecture into their business models, is saving part of the salaries resources. Less workers means more resources for the company, less debt, less fixed costs, more profit or more profitable expectations. Even if implementing automated processes decrease the quality of the service for the customers, the salary saving becomes an aggregated value. This is the main ´growth`promoted by BigData in small and medium size companies. Saving salaries, saving employees and trying to maximize profit with the least salary resources.
Automated services as a way to save salaries, more automation and rent contracts with amazon servers or microsoft softwares to basically wipe people out of the company.
The danger is paying and giving the big server hosting tech giants all the business information, which they will analyze with AI and generate reports for them to grow in even more sectors, as hidden shareholders or as a new business in part of their companies diversified activities. Is not strange that Google manages new e-commerce platforms and Amazon and Alibaba create their own products copying and competing with their own customers and companies that sell in their platforms. Facebook gives credits developing their banking activities and a new hegemony of all business lines is effectively controlled by the Tech Giants.
BIGDATA TRAPS
- Bigdata implementation is expensive and generates high costs for medium size businesses.
- The Tech oligopoly are the businesses that most profit from global Big Data implementation. The Tech oligopoly are the ones selling the servers and most BigData software to medium size businesses.
- Big Data is used as a trap to favour ad give access to the Tech Oligopoly of all data records of medium size businesses, allowing access to the Tech Oligopoly of privilege information, that give the Tech Giants an amazing competitive advantage to expand into new businesses and/or destroy/manipulate or alter companies and market competitiveness.
- Excessive digitalization of corporate key information, raises cyber security costs of companies and makes them extremely vulnerable to attacks and cyber espionage from governments, dictatorships, hackers and business competitors.
- Supposed increase of client satisfaction with automated responses ( is a myth, clients value more human to human communication, specially older clients with a higher income and who are more loyal, a completely automated service lower your costs and your clients loyalty, there is a necessity of automated and human client services combination )
- The need to invest in campaigns as a way to grow ( This means BigData is not generating the value, but your investment in campaigns is, campaigns that have to go through Google, Facebook, Microsoft, etc…)
We hear more fuzz about Big Data, but Smart Data is the answer for competitive advantage in the digital economy with an avalanche of information.
And sometimes Smart Data may mean downsize while maintaining profit or profit margins. And usually will mean diversifying and putting in place resilience strategies.
Big Medium Companies implementing BigData should
- Study very well hosting, servers contracts and Big Data software costs and returns
- Try to not contract Amazon, Microsoft and Big Tech Oligopoly services. Big companies have more resources to process your company´s information in order to obtain a privileged market outlook or even sell it to competitors.
- Be careful and take care of your programmers and data architects, they are a very important factor to gain the success any digitalized business needs
- Hire creative minds & Smart Data analysts if you can afford. Too often companies make analytical works that do not add much value to the company. Smart analytical works end up saving time and resources, increasing the resilience. Less processing and smarter processing is better, than trying to process tons of terabytes, without the correct answers to try to solve.
- Sustainability must be a goal for every digitalization process. Clients and shareholders are more attracted to companies that show environmental commitment and promote green innovation to lower energy consumption. It makes the company more resilient and more reliable for potential customers and investors.
- Use part of the BigData analytics and resources to set up communication and marketing strategies that do not rely exclusively in Google and Facebook ads.
Bigdata is full of traps, and the investment in a wrong software or excessive servers capacity or the contract of services to a competitor can be the end of a company. Too many initial costs, trying to save costs can wrongy misslead business decissions.
BigData means spying customers and measuring everything, it can take too much energy and resources for small medium size companies, while implementing a Smart Data strategy will maximize and optimize the available resources. It is a mistake to believe Big Data will save the world or save companies, in fact it has led to a bigger concentration and new markets expansion by the Tech Oligopoly, that at the same time offers a big chunk of most of the BigData services small and medium size companies end up hiring.
Big Data has generated more concentrated markets, with less competition. It is essential to be suspicious and to focus on obtaining quality or valuable information rather than a massive volume of information. Its true Artificial intelligence advances allow the processing of mega data volumes, but unless you give the algorithm the smart focus, most of the information is garbage.
The exponential increase of collecting data can offer some value, but most of the data is a digital landfill. Anticipating to get key information and having a strategy is more important than hiring bigdata tools, virtual clouds or programmers. Thinking goes first than having or making.
Big Data is not only not saving the world, is helping to cover up massive garbage, corruption and market concentration by few companies, that for their size, hardly employ people and pay extremely low taxes. Big Data plays an active role in the design of a dystopian collective psychology by the Tech Oligopoly. Few people concentrating power, resources, communication and re-programing cultural software while the biodiversity of the planet becomes extinct. An environmental catastrophe while a market massive accumulation and manipulation by few giants. Digitalization has become a necessity and a nightmare, the luck of competition in the digitalized economy is hurting real innovation and promoting a market concentration never seen before, that has deep implications in the capability of the real economy to sustain employment and growth.
Miguel Valdian