Data are the digital fuel

As many have pointed out already, data are at the core of the digital economy. Data are the digital fuel, they drive digital businesses. The more and better data you have, the more and better services you can offer.

Whether it is personalization, predictive actions or matching, all require data. What is important is not so much the amount of data you collect from each single user, but the combination of the data of your (and maybe even partners’) users.

“Hypization” of society

With social media and other Internet communication tools we see an explosion of communication both in terms of volume and speed. The higher speed allows for a much faster processing of information in society. One effect is that topics can be discussed and handled in a shorter period of time. This leads to a shorter lifespan of a topic. The increased volume necessitates much more “marketing” for a topic to gain awareness in society.

Both factors combined lead to an increasing number of hypes and probably also the necessity to hype a topic in order to gain attention for it in society. In this respect we see a “hypization” of society. Will we continue to move in this direction? Where will this lead society to?

The customer is key

Customers can easily switch vendors in the transparent and often global digital marketplace. They are often hunting for the best deal and whichever vendor can offer this best deal will get the business (spot market).

The best deal is not necessarily the one with the best price, there are other values as well (e.g. convenience). And sometimes network effects are important and platforms are developing.

My thesis is that owning the customer is the central success factor in the digital economy. Whatever the specific situation looks like, vendors should not compromise on keeping their customer relationships. Otherwise they may end up as interchangeable subcontractors to dominating platforms.

This is just a first exploration into a plethora of topics. More elaborate thoughts will follow.

Objective of site

This website will become a science-oriented site of Prof. Dr. Ralf Wagner, Köln (Germany). It would like to foster the advancement of the knowledge society by presenting, sharing and developing knowledge – hence the name of the site.