Algonomic Business is a blog about the transformational internet era of generating value from data.
It used to be easy…although limiting. We started with Dell’s innovative build to order ecosystems in 1985. Before the internet, the only data you had available to you in your ERP systems was the data you created within the walls of your business. The internet is now the universal connector and data flows at the speed of light between organizations.
Now with investments in cloud computing, big data (forecast $114B: 2018), machine intelligence, the “internet of everything” and the latest business intelligence technologies are ushering in a new set of strategic opportunities for every organization. The 3 V’s of big data: Volume, Variety, and Velocity – are available to all.
Getting closer to your customer in real-time with radically new analytics of large integrated data must become a capability in your organization or run the risk of new entrants disrupting your business.
‘Algonomic’, a combination of ‘algorithm’ and ‘economic’, is a term I use to describe the relative use of these latest information technology innovations to drive new business value.
Becoming algonomic is a new way of thinking for traditional organizations but is the way Silicon Valley thinks today.
Becoming more algonomic implies more data science, more analytics, with more algorithms
Becoming more algonomic means managing and valuing your data as a strategic and economic asset.
Technology firms are obviously highly algonomic and they’ve built their entire business models around technologies that have become platforms. Google, Amazon, Facebook, and Twitter are built on self-running algorithms that access massive datasets. Google search is one big algorithm serving up ads. Amazon’s recommendation algorithms basically sell you the next book. Twitter’s algorithms manage a real-time river of updates and simultaneously sell ads. Data flows between these massive algorithms with at the speed of light.
Some are calling this era of The Second Machine Age, and we expect that machine intelligence becomes a force that augments human intelligence and disrupts traditional business models.
I believe it’s an era of incredible business opportunity…for every industry…and for new business models. Global payment transactions. Healthcare. All industries will be transformed.
Are your Chief Information Officer and Chief Data Officer leading an algonomic transformation of your business? Or do you risk others out-innovating your business?
Let’s open this discussion: “How algonomic is your organization?”