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The rise of the algorithm economy

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Data has become the currency of the Always-On world. But on its own, it is not enough. Companies need to make sense of the wealth of data they have. This is where the algorithm economy comes in, says Warren Olivier, regional manager for Southern Africa at Veeam.
“Given the growth of big data, decision-makers are realising it is necessary to extract value out if it. But, for the most part, the focus has been on getting systems in place that take care of data storage and its management. With people being connected to corporate back-end systems using a variety of devices from wherever they are 24×7, it makes sense to have the building blocks in place. However, this is no longer good enough,” says Olivier.
A shift is happening that is seeing some companies focusing less on big data and more on streamlining that which they have.
“Businesses cannot operate without IT and IT cannot operate without data. This circular nature of the Always-On environment means that data links all facets of business. But whether it is managed through virtualisation, modern storage, and the cloud, or other enterprise computing practices, data is still very complex even when it is being streamlined,” he adds.
The algorithm economy translates business challenges into meaningful actions using the data that is available.
In a certain sense, it takes real-time analytics to the next level with algorithms that are unique to an organisation and its requirements. Several researchers from companies including IBM, RT Insights, and Gabe Piccoli and Federico Pigni, believe that these algorithms will be even more valuable than the data it processes and will be the competitive differentiator in the new world.
“This adds further complexity as additional security needs to be implemented to safeguard the organisation, its data, and the algorithms that will drive it. Regulatory compliance is helping to mitigate this to a certain extent as it provides companies with a blueprint of the boxes it needs to tick for data surety.”
As the Internet of Things (IoT) gathers momentum, the pressure will be on decision-makers to find a balance between managing data, analysing it, and shifting strategy to meet changing demands of the market.
“Earlier this year, Intel predicted more than 50-billion devices and ‘things’ will be connected worldwide by 2020. This presents a massive influx of data access points bringing with it a wealth of business opportunities and challenges. Algorithms will take on greater importance to help regulate this from an organisational perspective. But the path is set. Companies can no longer turn a blind eye to the always-on business and the need to evolve their approaches and systems with it,” he adds.