How Big Data Will Change Entrepreneurship



https://www.gsb.stanford.edu/insights/how-big-data-going-change-entrepreneurship


In this article, an interview took place between Shane Green, who is the president and CEO of Personal, a company helping customers choose whether to share their data with marketers, Joshua Feast, founder and CEO of Cogito and Charles Zedlewski, vice president of products at Cloudera. The interview and article highlight how big data is going to change entrepreneurship.
The first question asked was about what cause the rise of big data, what factors caused it to emerge at the time it did and the magnitude of opportunity it presents. Big data, according to Zedlewski is bigger than Moore’s Law because of the ability of systems, phones and machines that generate data. For those of you who are as curious as I was, Moore’s Law states that the transistors on a chip doubles within a two-year span. This means that there will never be enough memory or a big enough server and this creates an opportunity for entrepreneurs. Every wave sees first, second, third and fourth generation companies. So, there is a window of opportunity.
The second question was about the trends that define big data. Green states that data is being commoditized. This just means that data is being turned into a commodity. He states that it is very hard to get access to, and one of the major problems is knowing what to do with the data once you have it, which is a problem that many businesses face. He thinks the next trend is going to be finding and maintaining a competitive advantage, while also having access to data that no one else has. He also mentions regulation, particularly privacy and security issues that have begun to stifle innovation in Europe.

The third question inquired about the industries that big data would transform in the long term and the short term. Green says, that while there are not many industries that big data won’t impact, we should pay attention to advertising. He mentions how Google has been able to lower the failure rate of the entire industry, which still has a failure rate of 97%.
The next inquiry was about the economic value of personal data and the mechanisms that exist to help entrepreneurs think about it. Feast mentions the insurance industry as an example of that mechanism and states that certain pieces of data allows us to make decisions. So, just by looking at that information, insurance companies are better able to manage their customers according to risks.
The final question asked how MBA holders could evaluate opportunities for entrepreneurs in big data. He mentions how people often compare data to oil, how oil was being spoken of 100 years ago. Similarly, with data, it had to be found, extracted and shipped. He commented that it would not be just another trend and that it would continue to grow. This is where the need for new businesses is going to arise. He also mentioned that businesses that we thought would never arise, will eventually come out of big data.

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