We’re being told that data is so important these days, data fuels the world, and indeed, data is the new oil, according to The Economist.
Nowadays, I cannot agree more about the importance of data.
However, I’d like to share some views related to why is this so true.
Data can be used for a lot of things, it can be used to profile you individually, or as part of a biggest segment or audience. The ending purpose of data professionals is to study you, to engage with you, to target you.
Now, let’s take a look at the habits. Every day you get a cup of coffee, you open up Instagram or Facebook, that’s a habit, something you do regularly, easily predictable if you look up the data, let’s say your financial data, location history, or social networks.
Habits were once established due to such a good experience, that experience was felt by a significant release of dopamine in your brain, dopamine is the way your has to reinforce the good things.
Now let’s dig in a little deeper: before you had experienced joy or pleasure, you had to do something, and before you do something, you were interested or needed to do that. The reason of your interest or need is deeply rooted in your beliefs and your beliefs system.
Think about Coffee, you needed to study or to be well aware. You never took coffee, but someone told you that coffee was good for work, and you saw a lot of people drinking it for work, then you give it a shot, you feel awaken, and you form out a view about coffee and how it positively helped you with work.
Let me illustrate here:
For many, this may seem very basic.
For me, this is a foundational concept, the engine of the world.
Understanding people’s behavior, and what triggers it, and using data to analyze it makes me wonder on how to use the ton of data out there for predicting things, prices and markets way before than others.
What do you think? is data the new oil?