Liquid Big Data: the next digital disruption?
Liquid Big Data is when competitors use Cloud technology and ways of working to openly share and analyse large volumes of data together for their mutual benefit. Yet an organisation engaging in this form of co-opetition risks losing competitive advantage over its peers and increases the threat of new entrants stealing market share. But could the strategic value of such a move outweigh these risks? Here are some ideas…
The customer comes first
Using Liquid Big Data to join up the customer experience across not just an individual organisation’s sales channels but complementary and even competitor offerings would demonstrate its commitment to personalisation. Customers themselves are already using digital services (such as price comparison websites) to disrupt the silo experience of individual brands to personalise their customer experience – how can organisations gain shared competitive advantage by working together to supercharge this form of empowerment? This approach could help address falling demand in physical stores being experienced by the UK Retail sector for example.
Agile supply chain performance management
Liquid Big Data can drive greater collaboration between organisations and their large (and small) suppliers to help reduce the risk of producing unwanted stock or inventory and deliver better resolutions to other supply chain issues. For example, by sharing real-time sales and operating performance data enables them potentially to work closer together to deliver more accurate, timely forecasting of demand that improves their management of Lean or Agile-like approaches such as just-in-time manufacturing. In addition, it creates opportunities for both partners to adopt new ways of working to further strengthen the agility of their own supply chains.
Data as currency
Given the rise of digital currencies for business to customer transactions using the Cryptocurrency approach, could there be an opportunity to extend this model to enable the trading of Liquid Big Data between organisations instead of cash payments? These business to business transactions could be occurring at different speeds – for example, the instantaneous sharing of insights between organisations wanting to sell tailored complementary services to the same customer or one-off trading of large volume, complex service performance data between suppliers to help them build collaborative services for the same client.
Increased resilience against cybercrime
Every day, many organisations face the risk of hackers trying to disrupt their digital services or steal their large volumes of customer personal data. To mitigate such risks, organisations could collaborate to build and jointly manage secure Cloud services to protect these critical Big Data assets together. Although this approach does not mean these competitors are sharing data with each other, potentially it could enable the creation of a secure Liquid Big Data platform that could be sold as a service to other organisations for their mutual benefit.
Component full life view
Some organisations are trialling the use of IoT sensors in their goods or products to track their performance through the supply chain and customer experience. This approach could also be used to gather data on “long life components” used in consumer electronics, cars or aircraft. Such Liquid Big Data could then be shared with competitors to help validate sector-wide benchmarks for component longevity or be combined with other information (such as environmental factors) to identify other issues that affect their performance.