Is your business about to be disrupted by data?

In a matter of weeks, organizations implemented remote working for many employees, driving internal changes that would have taken years to plan and roll out only a few months ago. This has shifted the focus of operations to the vital role that technology now plays in our businesses.

The genie cannot be put back in the bottle. This forced global experiment will change how businesses operate over the next decade and beyond. Several key technologies will play a vital part in these developments, with the collection and exploitation of data being the common link.

Drive to automation

The rise of robots in automated factories and warehouses was well underway before workplaces shuttered their operations in response to COVID-19. However, the need for social distancing and safe workspaces has driven a significant increase in the demand for robotic devices and helpers. In the U.S., companies including Brain Corp, Xenex and Simbe Robotics are taking on extra staff to build and maintain the robots retailers and hospitals now need to sanitize buildings and stock shelves.

While these devices help keep workers safe, they are also generating data that is used to streamline workflows and business planning. For example, Simbe’s Tally robots collect real-time data on where products are located on shelves, helping customers and stock pickers find what they are looking for in less time. Such robotic solutions will continue to harvest new data, reducing operating costs and improving customer service as they go. Businesses that implement them will find themselves at an advantage once the current crisis ends through their lowered cost base and organizational learning.

5G and the IoT

It is likely that the current trend for remote working will speed the deployment of 5G networks and services once the immediate restrictions on movement are lifted. The value of high speed and low latency connections has become apparent to home workers as they struggle with video conferencing and online collaboration. Ericsson is predicting 2.6 billion 5G subscriptions by 2025, up from 13 million at the end of 2019. In terms of innovation and product development, this will allow companies to offer more immersive customer experiences through VR and AR. Across B2B and B2C verticals, the data generated by these value-added services will deepen relationships with customers as user preferences and behavior are captured in real-time and fed back into improved offerings.

5G and other low power wide area network (LPWAN) technologies are also driving the deployment of many IoT initiatives. Remote data collection on environmental conditions in buildings and cities is becoming more important as governments and policy makers seek information on the movement and behavior of citizens under lockdown. We can expect to see significant investments over the coming years in such systems to deal with possible future epidemics. The rise of the open data movement and recognition that publicly sharing data offers societal and economic benefits could see many of these information streams opened up for businesses to innovate upon. Data exchanges such as Terbine and Dawex are creating the infrastructure needed to inject liquidity into this emerging sector.

AI and alternative data

Many smaller companies have been held back from the commercial benefits of AI because of a lack of appropriate data to feed into their algorithms. Large organizations were often at an advantage as they had internal datasets derived from their operations or could afford to buy data as required. Google and Facebook are obvious examples. But data ownership is not always necessary to build data-driven products and services, as some innovative uses of data are showing.

Data synthesis is one approach taken by AI developers as they look for rich datasets to train their systems. Capgemini reports that car parts supplier Continental has built an AI-based virtual simulation program, capable of generating 5,000 miles of vehicle test data per hour. Capturing the same data from actual vehicle use would have taken 20 days. Researchers from Intel Labs and Darmstadt University in Germany have used the video game Grand Theft Auto to capture data that can be used to help train autonomous vehicles.

Banks such as Citi and UBS are experimenting with new sources of data as they attempt to monitor the impact of COVID-19 on the economy and, more importantly for them, which stocks to buy or sell. Buying near real-time data from travel websites, insurance companies and job sites is allowing them to better predict consumer buying intentions than relying on monthly government statistics or quarterly company financial statements.

While dealing with the immediate challenges posed by the current lockdowns is an obvious priority for CIOs and business leaders, it is important that the bigger picture of what the world may look like post-COVID is kept in mind. Companies that take time to learn from these experiences rather than assume a return to business as usual in a few months are more likely to succeed. Making better use of data, internal and external, will be a key part of this.