Datification is the fuel for the information age
Simply put, datification is about looking at all aspects of life through the lens of data. It is about turning social actions and processes into quantitative data. This trend is closely linked to advances in Big Data, machine learning, and artificial intelligence, which make it possible to obtain previously inaccessible insights and make predictions. And it’s important to note here how strongly interconnected the platform economy, digital ecosystems and datification are. Because these frameworks allow for the collection of data throughout a person’s life to the point where each person can be perfectly analyzed and predicted. Because at some point we will have to face the question: What happens if an algorithm can predict my needs better than I can, or not only predict but influence them?
Internet and connectivity – building a networked world
In our Western world, the Internet has long been a standard. The Internet, with its interconnected web of data and information, is the backbone of our digital world, yet currently billions of people still do not have access to the Internet. The implications for the world’s economy and economic structure would be enormous if this part of the untapped world were to suddenly gain access to the Internet as well. We are on the cusp of an exponential leap forward. Developments such as 5G, 6G and even satellite internet and beyond promise huge increases in speed, reliability and bandwidth, paving the way for innovations such as autonomous vehicles, real-time remote robotics and immersive augmented reality, as well as lowering barriers to entry around the world.
Platforms and the emergence of the platform economy
The platform economy, characterized by digital platforms that facilitate interaction and transactions, is coming to the forefront. From social media to e-commerce, these platforms leverage network effects and data to create rich, personalized experiences. These intermediaries and intermediary platforms have their own unique dynamics and are also creating challenges internationally. For example, Booking.com has become an important intermediary in the travel industry, and with all its recent acquisitions, it has managed to evolve from a booking platform to a giant digital ecosystem that tracks all interactions and destinations to determine pricing and availability.
Digital ecosystems as a new business paradigm
Digital ecosystems are complex networks of companies, people and processes that utilize digital platforms to achieve a common, useful goal. In short, a wide variety of services, offerings and platforms are created that are interconnected. This allows the so-called “customer journey” to be covered more effectively. Using Booking.com as an example, people read travel blogs and magazines, then search for flights, then get targeted hotel offers, which in turn leads to revenue estimates, which in turn leads to additional offers, and so on. These ecosystems have revolutionized the customer experience, but they also pose some risk. For example, Apple’s ecosystem has evolved to the point where it leads to dependencies, which are then used to sell additional services, and Apple even excludes other users from its ecosystem. This accumulation of knowledge, customer insight, data, but also blocked customer assets creates many problems for society and the economy.
Distributed ledger technologies and blockchain
Blockchain is the best-known example of distributed ledger technology and promises a new paradigm of trust and security in the digital world. This is because it promises to be a decentralized, immutable system for storing sensitive data. Decentralized databases like blockchain certainly have potential applications in a wide variety of fields. However, it remains to be seen whether these promises can be realized, as the technology is not yet ready for mass adoption. Thus, in the future, we may utilize other systems and databases that can counter the general trends of data ecosystems. However, it should also be noted that for most people, storing their own data is less of a problem, and digital ecosystems convince with simplicity and strong marketing.
