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The Implications of the Social Data Revolution

How's this for an eye-popping statistic: "In 2009, more data will be generated by individuals than in the entire history of mankind through 2008." So says former Amazon Chief Scientist Andreas Weigend in an article for HarvardBusiness.org. Indeed, information is overloading, so what are the implications for marketers?

Weigend says the first data revolution came about when companies started tracking the things people were doing online through clicks and searches. "Back then, customers had no choice but to share their intentions with firms," Weigend notes, giving companies all the power, and leaving consumers with no voice.

The second data revolution, he says, came about when consumers started actively contributing explicit data about themselves, their friends, or the items they purchased (otherwise known as user-generated content). "Today, the online world has shifted to a model of collaboration and explicit data creation," Weigend says, because people are being rewarded for sharing their information. In other words, consumers are realizing the value of their voice, because it can help themselves and others with making decisions. As such, the online world is starting to be ruled by the expectations of consumers. Weigend argues that as the expectations of users change, firms must spend more time developing incentive systems that will entice people to participate.

Read the whole story at HarvardBusiness.org »

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