Information + Technology = Value

Recently, I was talking with a client that was asking about our various Business Intelligence and Big Data mining services and consultation. I found myself explaining why companies are now shifting focus to this new ‘catch phrase’ and if there’s something they are missing by not having their own BigData protocols in place. Their first question out of the gate was ‘Where is the Value here?”.

When you combine information with technology, you will gain a certain amount of value. Its difficult to put actual numbers into this equation, seeing that value can always be looked at and appreciated differently,  both for Information and Technology respectively.

This is the standard understanding in our new age; but now there is a new trend that is looking at a shift in the marketplace. As Technology becomes less costly to develop and maintain, as hardware and cloud infrastructure becomes more available, as resources are becoming less scarce, the industry needs to look forward towards balancing the I+T=V equation. This is a concern for larger organizations involved in the technology side, who’s entire model is based on the availability of technology and infrastructure.

So lets think about this:

Information + Technology = Value

The easiest example would be your typical Cable provider; their infrastructure provides the platform for the content they share and publish. The ISP or Cable provider maintain the infrastructure – the content of the network TV is entirely separate; but together they create value to the consumer.

If the Cable providers found a more cost effective way to maintain their infrastructure (the value of ‘T’ goes up’), then ‘V’ would increase respectively. So either you increase the worth of the Information or of the Technology to create overall higher Value.

What about the reverse? Say for example, that the Information begins to loose its worth; People are finding their news, comedy, sports, etc. (information) through new and different mediums (Web/Mobile); causing the worth of ‘I’ to drop and will cause ‘V’ to go down, unless you’re able to increase the worth of ‘T’.  (ie.  Make your technology cheaper in order to provide the same overall value).

Business Intelligence and Big Data insight, is geared at understanding the simple principle that Information doesn’t leave us (well, maybe in a Black Hole – that’s a debate I’ll leave to my scientific friends), and if anything, only grows and becomes more complex. Because its an ever growing asset, the worth will continue to grow and expand naturally. It goes without saying, that any business or organization today that is not attempting to capture and learn about all the available data produced within their respective ecosystems; are only delaying the inevitable.  The information asset will always be a key technical output of all business processes – one that can be looked back on and studied, even in present day.

How do you measure growth? Marketing successes? Infrastructure changes? Socioeconomic changes? Innovation change?

Whatever the answer is, for whatever organization, the answer tomorrow will most likely be different. Looking back at the Cable provider in the prior example, one can now understand why it makes complete sense for companies like Netflix and Amazon to create original content for viewers, by using their already existing infrastructure and not relying on the cable networks;
I = V-T (Information = Value – Technology).

In a nutshell: Tech can and will always become easier to procure. Information will also have intrinsic value loss, with time, it will have less and less of a hold on real time world situations. However, we must keep in mind that the growth of the Information must be greater than the loss of the worth in tech, in order to maintain a proper balance over time.