Is data really the new oil?

Many industry experts and popular business publications, have recently attested that data, not oil, is now the most valuable resource in the world. Industry experts have coined the phrase “data economy” to describe the influence and prominence of big data in today’s society.

The concept behind “data is the new oil” is that just like oil, raw data isn’t valuable in and of itself, but, rather, the value is created when it is gathered completely and accurately, connected to other relevant data, and done so in a timely manner. When properly refined, usable data quickly becomes a decision-making tool – information – allowing companies to react to market forces and be proactive and intentional in their decision-making.

The economic reality of a world with Covid-19 is such that the value of oil has decreased drastically. Oil, as a resource, is simply not in demand. For data, it’s a very different story. I would venture to argue that in today’s environment, especially with regards to widespread concerns of the health-related and economic implications of Covid-19, that data is in more demand than ever.

Why? It’s simple economics. Covid-19 related data is being generated quickly. In concert with the unprecedented speed at which the virus has spread, many organizations must now make difficult decisions on how to thrive and survive. The result? The demand for accurate and up-to-date data, and further methods of organizing and utilizing said data to make informed decisions, is through the roof. It’s undeniable that there is great value (e.g. monetary, health, safety and otherwise) in getting access to new information faster. But what we have seen with much of the Covid-19 data is that more data does not always equal better information. 

Government organizations and media outlets have frequently reported on the numbers of COVID-19 related deaths, positive tests results, hospitalizations, and tests administered. From this, there have been ratios reported on the death rate, recovery rate, infection rate, hospitalization rate, etc.  However, primarily due to limited testing, not all positive cases are known.  In addition, not all organizations (e.g. countries) are classifying or reporting on the data the same way (or perhaps more sinister, hiding information).  Therefore, while there may be an abundance of data, and that data may be in demand, without ensuring that it is complete, accurate, timely and connected to other relevant data, the information may not be valuable in driving key decisions.  Worse, it may actually lead to the wrong decisions.  We’ve seen this play out in numerous businesses over the years.

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