Originally published on July 23, 2021 in Thematiks by Carlos Alvarenga, an author, researcher, and founder of Thematiks, which showcases important academic research to global business leaders. Below is an excerpt from the article:
A mantra of management over the past few years has been that companies need to gather and profit from the data they collect about their customers and products. An endless stream of articles and “white papers” from consultants and tech companies present the benefits of data and analytics investments. Two common threads to many of these works are (a) the sense that one should gather as much data as possible and (b) that having the most information about customers and markets creates a competitive advantage. These beliefs have resonated so strongly that regulators (and some scholars) in the U.S. and Europe have begun to worry that excessive concentrations of information in specific markets are hindering competition and should be addressed through regulatory action.
While the idea of collecting as much data as possible sounds appealing, recent research suggests that many factors affect the value of data collected by companies. A recent working paper by Marco Iansiti (Harvard) summarizes those trends and—more importantly— presents a new framework for understanding the sources and dynamics of value creation through information. Supported by several case studies, his model is a welcome and nuanced perspective on how data do, and do not, create value for organizations.
Read the entire article here.