Oil Is So Last Year

The world’s most valuable resource is no longer oil……it’s data. However, concerns are being raised by the giants that deal in data……the oil of the digital era. Alphabet (Google’s parent company), Amazon, Apple, Facebook and Microsoft are juggernauts in the data world.

 

Such dominance has prompted calls for these tech giants to be broken up. Don’t get me wrong, size alone is not a crime and there have been great consumer benefits……few of us want to live without Google’s search engine (I wish I had £1 for every time I have heard young and old say “google it”), Amazon’s one day delivery service or Facebook’s timeline. However, there is cause for concern……internet companies control of data gives them enormous power.

 

Just think of the power these 5 companies have……smartphones and the internet have made data abundant, ubiquitous and far more valuable. Whether you are going for a run, watching TV or even just sitting in traffic, virtually every activity creates a digital trace - more raw material for the data distilleries to analyse. The data we are giving these 5 companies is hugely powerful and equally scary……that’s the new oil for you.

 

And this power converts to money. Alphabet, Amazon, Apple, Facebook and Microsoft profits are surging……collectively racking up over $25 billion in net profit for the first quarter of 2017. That’s the power of data.

 

Just like cars are evolving away from oil to embrace a data digital world……it will be fascinating to see how the next 10 years evolves with digital data.

 

Very difficult to fight against it……it looks like compulsory embracing is the only way forward!