Imagine a world where you can reap the benefits of years of hard work and countless hours of number-crunching by data scientists to help your company run more efficiently or be more competitive — all with the click of a button.
Welcome to the Algorithm Economy.
The term, originally coined by Gartner in 2015, refers to the monetization of algorithms — but the words are less important. In this new economy, it’s all about what algorithms actually do. And today, they’re doing more for businesses than ever before.
Simply put, we are living in the age of algorithms.
Algorithms are going mainstream. With the arrival of algorithm marketplaces, easy-to-use to use tools for big data analytics, and more domain experts and specialists that can help you succeed, companies around the globe are realizing the power of data and analytics solutions.
This new phenomenon of “accessibility” is fueling the Algorithm Economy, changing the way technology is implemented by putting the ultimate end solution in the hands of the user — and any partners that they bring on board to help.
As a result, according to TIBCO’s head of Analytics Strategy Shawn Rogers in a recent Diginomica article, a “re-intermediation” is taking place with open technology and domain experts helping companies curate solutions to complete “the last mile of capability.”
In this new environment, companies that succeed usually get the same things right, all at the same time. This includes placing a relentless focus on the four disruptive drivers below:
- Technology — Today’s open, more flexible solutions allow for specialists to develop solutions that are “ready-made” for a company’s specific need or process. Companies today have easy access to new technologies like APIs and API management platforms and can now buy algorithms off-the-shelf.
- Community — There’s strength in numbers. Ecosystems are re-emerging as the linchpin for building effective, company-wide, connected solutions. When companies, vendors, and experts work together, time-to-market is accelerated and technology adoption hurdles are lowered.
- Economic Advantage — The cost of entry to using data and analytics is getting lower with smaller companies and startups more easily getting into the game. Having access to open source technologies can enable companies of any size to have viable solutions in a matter of weeks or even days — at a low cost.
- Total Data Availability — Knowing the best place to put your data — behind the firewall or in the cloud, or both — is critical to not only making it easily accessible to the right people, but also providing for more protections if needed, including for customer data. Again, this is an area where a specialist or the right partner can help ensure the right approach for your company.
According to Rogers, “If all four are happening at your company you’re going to change, and you’re going to do things differently than you were ten years ago.”
For more insight and information, you can read the complete Digimica article here.