As ones and zeros eat the world, data is the new product and data science is the new process of innovation.
The International Institute of Analytics predicts that in 2014 companies in a variety of industries will increasingly use analytics on the data they have accumulated to develop new products and services. NewVantage Partners’ most recent Big Data Survey reports that 68% of executives felt that “new product innovations” was the greatest value to their organization from big data. Today, in releasing the Accenture Technology Vision 2014, Accenture’s CTO Paul Daugherty said that “Digital is rapidly becoming part of the fabric of [large enterprises’] operating DNA and they are poised to become the digital power brokers of tomorrow.”
The best example of this trend I’ve encountered recently came from an industry one does not necessarily associate with data crunching and analysis—the vehicle remarketing industry, better known as used cars auctions. In 2012, Manheim, a subsidiary of Cox Enterprises, handled nearly 8 million used vehicles, facilitating transactions representing more than $50 billion in value. With annual revenues of more than $2.5 billion, Manheim offers its services in 14 countries, from physical and online auction channels to financing, transportation, and mobile solutions. Manheim’s research and consulting arm, Manheim Consulting, provides market intelligence and publishes the monthly Used Vehicle Value Index and the annual Used Car Market Report (see here for the just-released 2014 version).