Oil field

Why is data the ‘new oil’?

When it comes to commodities, few have the potential that data holds in the modern age. You may have heard some refer to data as the ‘new oil’ in recent times. While you can’t use data to power your car, it is quickly becoming a crucial asset across various industries. Let’s look at where this ‘new oil’ reputation stems from and whether there’s any weight behind it.

It’s all about value

Simply put, data is being compared to oil due to its value. Oil was once the most valuable resource a country could have. After all, nearly everything ran on oil. However, in today’s technology-driven world, everything relies on data.

Clean, quality, actionable data, when used properly, can make money for companies of all shapes and sizes. It can increase sales, boost productivity, and help improve the quality of products and services. What’s more, data isn’t finite. For as long as people are born and continue to use public services and programs, data will always be available, and usable for various revenue-driving ends.

What is data-driven decision making?

Data-driven decision making (DDDM) has become the new backbone of many companies. Instead of making vital decisions based on experiences, hunches, intuition or rumors, company directors and managers are relying on data analysts to provide them with quality information from which they can draw accurate conclusions and forecasts.

This allows companies to make lucrative decisions regarding their products and services, workforce, prices, current trends, and, of course, their customers. This stance is also helping data analysts to make serious career progression by taking on an online Master’s in Data Science. Thousands of specialists are becoming relied upon for what happens next.

It’s a worldwide source

One of the most complicated things about oil is that there is a finite amount of it that is only accessible in some parts of the world. This makes it an expensive and dangerous commodity. There have been numerous conflicts fought over who has access and why.

Data, however, is everywhere, all the time. Wherever you live, you have access to data. Businesses also have incredible insight into who’s using their services, what their customers want, and how they can boost their bottom line even further.

Of course, companies need to be more careful than ever with the data they hold. Due to it being so valuable, there’s always going to be someone looking to hack and steal the right information. Cyber resilience, therefore, is a must.

It’s the future of marketing – and everything in between

The world will still depend on oil for very different reasons than our dependence on data, but the way we resource and analyze data is always changing. It’s evolving for the better too, in that it’s becoming more insightful. This means its value will only increase and that the skills of data scientists will only become more lucrative.

Is data the new oil? Quite possibly!

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