The vicious cycle of connectivity, data generation and innovation

In the last one and half decade or so the world has seen a boom in data volume. Information Technology sector has grown leaps and bounds and it has invaded practically all other field of study and work. The main reason behind this deluge of data has been the improvement in connectivity tools, its geographical reach, low cost storage and transmission. Digital technology powered by computers and the internet has just destroyed the barriers of distance for data sharing. I hardly remember when I have last visited the post office to send a letter to my beloved ones. Mobile technology has complemented by adding mobility to this exchange phenomenon. It’s truly mind boggling to see so much change in such a short time. Now what has been the consequence of this phenomenon among people? Well, the benefits are there for all to see. By sitting inside home we can now send and receive hundreds of mails to/from different people in a jiffy, can organize group conference including people located at different corners of the world, socialize with friends and unknowns through social sites and a lot more. People are becoming increasingly aware about the distant world and getting exposed to new practices and cultures, the volume of which was almost unthinkable 30 or 40 years back. One of the most important changes this data boom has brought about is empowering the rural world by extending its reach to the rural populace. Rural population (multiple in number than the urban population) in remote areas are now being informed about the change in political and market conditions within hours or minutes of its occurrence. This super connectivity is having an impact on the political and industrial landscape of nations and globe. As people are getting empowered by information (patterns of data) politics is reshaping to adjust the new demands of the collective mass. Initiatives like “Inclusive growth” are being discussed in the political as well as academic circles. Similarly, industry (corporations and firms) is being exposed to a new kind of challenge i.e. to weather the accelerating “change” in market demand and technology frontier.

The key point from the about discussion are presented below in a logical sequence
1. Connectivity among people are increasing
2. The more we connect the more is the data generation and exchange
3. People getting more informed and hence more discerning (smart)
4. Smart people are more demanding than before
5. More competition among firms to serve the smarter people
6. Innovation through connectivity




So this is a non-stop positive loop of increased connectivity resulting in data overload. But the question here is how to tackle this?

There is no single panacea to the problem. But a probable answer to this question, I would say, may be to focus at those components in the loop that can be manipulated easily and which in turn could influence others. The two components that could be the subject of manipulation are, data handling (stage two) and bringing novelty to the market through innovation (stage 6)

Interpretation of data: Regarding data all firms have a big role to play, why? Because the interpretation of data is subject to individual mind and each firm is composed of human resources of different caliber. A set of data does not have any special significance unless it is interpreted in a meaningful way, giving rise to knowledge. Though all firms are generating knowledge from the same data pool (which is mostly common nowadays, as data is available to all), but this knowledge is not necessarily same for different firms. The competitive advantage lies with the firm that generates more pertinent knowledge given a particular context.

Innovation through connectivity: The job is not done by merely interpreting the available data, the key is to use that knowledge and coming up with new ideas by taking help of the existing and new networks. These ideas are then screened and processed to generate new product and services (Innovation).

The cycle depicts how innovation is aligned with the ever increasing connectivity and data generation. They all have a positive correlation.