Corporate Information in the Age of Big Data

Corporate Information in the Age of Big Data

Although the term “Big Data” has been discussed since the 1990’s, it is still, and will remain a very relevant term. Mainly this is due to the usefulness of analyzed data, and the insights that it provides to make more informed and educated decision-making.

Internal data of a corporation can help the organization to gain a deeper understanding of their customers, optimize operations, reduce costs, and develop new products and services. This allows for greater levels of work and product quality, efficiency, and effective application of the limited resources that an organization possesses. In short, it can determine the competitiveness of the organization as they move forward.

Big Data has been accumulating different between fields and industries for decades, and, although much data is retained for in-house use, a lot of it is available for use to the public, free and paid. One of the exceptions to this is corporate information. Corporate information, especially for small and medium sized companies is scarce, and even more so for those operating in newly industrialized or developing countries.

The biggest difficulty in acquiring corporate information is that the data is simply non-existent digitally. Even many developed nations are under the process of digitizing their data, so for many reasons, newly industrialized countries and developing countries simply still have most of their data stored as physical files. Most countries, around the globe, also do not have any regulations requiring private companies to report their information, besides that which is required to registering the company itself, or the information required for tax purposes, information which is not normally made available to the public. However, the biggest reason for the scarcity of information is that there is simply no motivation for private companies to make their information public. As such, even when there is information available, there are often no standardization for the information that is offered.

When information is available, finding it poses a daunting task. Information that is sought is often extremely difficult to find, if it exists at all. Often, even if the information is found, the information is outdated, not having been updated in years, or even decades. As a result, the quality cannot be guaranteed; application for the information found is questionable, at best.

There are a few sources of information available nowadays, with most of these organizations sourcing their information from various sources within a country, such as Chambers of Commerce, government databases, credit information companies, and so on. But, having put together their information from such sources, the cost of accessing their databases remains monumental, subscriptions often reaching into thousands if not tens of thousands of dollars per year.

As most organizations that need this type of data do not possess dedicated data teams, using the acquired data also poses a challenge. Although, there is no need for an expert, one with some knowledge of data processing is needed to make use of the data. The process for transforming data into useful information requires sorting, cleansing, further processing, and customization, often also requiring analysis and visualizations. If these types of tasks are regularly repeated, a dedicated team is needed.

There are a few potential solutions to the lack of information. Such a herculean task like this is most effectively done through government intervention, requiring companies to register their information at regular intervals. This is already being undertaken by many governments around the world, making information open to the public. Open data, government open data is on the rise.

Another solution is creating more supply of information. By more players supplying information, however large or small, and simply relying on free market economics to create a more information friendly environment will naturally create more information. This will have the natural effect of providing the market with more information and bringing the cost of the information down in the process.

The most effective solution, though, lies in creating motivation for private companies to volunteer their own data. This can be done in several ways, such as attracting investment, finding suppliers and customers. Creating an environment, or market, wherein the voluntary provision of information has positive financial effects has the potential to have a fundamental impact on how business is started, run, and done.

Hebronstar Strategy Consultants

Lee, Dong Wook/ Senior Expert