Anisa Luthfiah Amalia

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How Data Will Transform Business

It is about the relationship between strategy and technology. Business strategy is always based
on assumptions about technology that are actually changing dramatically. So, business strategy
is about a different concept from us. Based on what Philip Evans said that actually there are
two intellectual giants of business strategy: Bruce Henderson (BCG’s founder) and Michael
Porter (Harvard Business School’s professor). Based on Henderson, there are many phenomena
that are detailed by what economists would call improving returns-scale and experience in
business world. Because of his principle that the more you do of something, disproportionately
the better you get, he concluded about the logic to invest in extraordinary things to create a
good competitive. That’s why it be became the first introduction of the importance military
strategy concept into business world. And also Porter that approved about that statement. There
are different components with the different kind of strategy in a business and to make them can
work well Porter made value chain concept that it is about the sequence of business steps. In
every business steps can give advantage maybe from a raw material to be a component and it
is assembled to be a finished product then is distributed. Value chain needs to coordinate well
in order to it can be more efficient. Basically in business has transaction costs, those are about
processing information and the other is about communication. Since, the mid-’90s, internet and
communication has exploded dramatically and it has made the communications costs went
falling down. So, there is about a step in value chain that is used in a business to face the
competitor that it needs a vertical integration in order to make sure that the value chain works
well. There are many story about the changing of everything especially about the
transformation from encyclopedia business to Wikipedia and CD-ROM to internet. It means
that it will give impact for the transformation especially for about costs for the salesman who
distribute the product of that. Now, the difference of Wikipedia is not about the distribution but
it is about the way it is produced. So, there is nothing harmed because of the difference because
it can give big advantages, give the efficient things, and also can reduce about useless things.
When we take a look back to around 2000, information revolution was happened and in fact
that the world’s stock of data has grown very fast. After 7 years, the digital substitution was
also happened and grown up very fast. We can make a highlight that digital data is information
that has an IP address. It may be possible to collaborate the world’s knowledge to take a look
of patterns and something new about the data. There is about statement that “Now, if the
number of connections that we can make is proportional to the number of pairs of data points,
a hundredfold multiplication in the number of patterns that we can see in that data, this is just
in the last 10 or 11 years when we run the numbers forward to 2020.” From the statement we
can know that there is a big world economics change. It must be happened in about
transformation like as the difference costs of genome mapping because it can be caused by data
and technology. For example, when genomic data is combined by clinical data and by data
about drug interactions with the kind of ambient data that devices like medical sensors and
phone will increasingly be collecting. Based on that we can make a highlight that collaboration
can unite many components and also data become a big revolution especially for business
technology. So, actually everything will go wrong if something in collaboration can’t go
efficiently like as about the vertical structure to a horizontal one and it’s about the value chain.
By the data, it can process everything to produce something. The result of the data process will
create something that it has to be analyzed in order to decide a decision about business strategy.
When the business strategy has been found, it will be used to know the way we face the
competitor. Based on tat, it can be concluded that data collaboration will transform business.