Each month, “Lochhead on Different” episodes will explore the need to differentiate people, products, and services in a world that encourages a lot of imitation. A best-selling author, top podcaster, and former tech-industry CMO, Christopher Lochhead is a student of not only business and technology and marketing but also human nature, human folly, human genius, and very human joy.
In this episode, Chris agrees with me that “data is the new oil” is the wrong way to describe the phenomenon. Because data goes far beyond oil; it is more valuable than cash. Data can be converted into value in more and more-powerful ways than cash can.
According to IDC, Chris says, by 2025 there’s going to be a 10X increase in the amount of data on Earth –163 zettabytes. And according to Statistica, the Internet of Things will have 75.5 billion connected devices by then. (Consider this: a company called DribbleUp has created a “smart basketball,” which tracks things and gives data back to your phone – and presents you with different and more effective ways of training and using the ball.)
Given all of this, Chris and I dig into the concept of a “data flywheel.” Simply stated, the company that has the most data around who their customers are and what customers are purchasing has the opportunity to leverage a data flywheel to dominate its category.
As an example, Chris says to consider live music. Many concert tickets get sold on the secondary market – and are essentially digitally scalped. So Adele said on her recent tour, ”If we don’t solve this problem, somehow only the people who are in the audience are a bunch of rich people. I want to perform for my most enthusiastic fans – some might be rich, but others aren’t. So how do I allocate the tickets?” The solution was an algorithm. It was effective in getting tickets into the hands of fans who actually wanted to come – and that is an example of a data flywheel.
You can also stream the audio-only version of this episode:
'Cash is really only monetizable in one major way, and data is monetizable in a lot of different ways.' #CloudWars Click To Tweet 'If data is more valuable than cash, the IT organization is the treasury.' #CloudWars Click To Tweet 'Data and connection is coming to everything. It's a fun exercise to try to think about what it's *not* coming to.' #CloudWars Click To Tweet
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CLOUD WARS LIVE DIGITAL ALL-STARS
Christopher Lochhead is one of our regular Digital All-Stars. The All-Stars are experts who will appear in regular video podcasts. Our focus is on the critical themes shaping (and re-shaping!) the business world in the digital age of 2019. Our intention is to provide regular chunks of timely ideas, insights and conversations on high-priority subjects from industry veterans with diverse backgrounds.