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The parable of “The Blind Males and The Elephant” tells the story of six blind males who come throughout an elephant for the primary time. They every look at a distinct a part of the elephant. The trunk. The ears. The tusks… You get the gist.
Consequently, every individual involves a really completely different conclusion about what an elephant is.
They’re all partly proper — but in addition fully flawed.
The ethical of this story is easy. Totally different views and incomplete data can result in various — and sometimes inaccurate — interpretations. It is an previous story. But it surely’s a fable we must always pay shut consideration to in our fashionable world. Particularly when working with information.
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Much less will (virtually) at all times be extra
Enterprise leaders worldwide wish to use their information to make higher selections and get extra correct insights into their enterprise.
However typically, companies can have a number of layers of their tech stacks. Some are new. Some are previous. Some are built-in. Some are completely siloed. Every of those layers captures completely different information. And also you get inaccurate insights when these items aren’t speaking to one another.
Companies have entry to extra information than ever earlier than. However amount would not equal high quality.
For a lot of organizations, the precise high quality of their information is being diluted. You create misaligned incentives by having so many alternative components in your tech stack. One facet of your stack could inform you one factor, however then the subsequent half can contradict it. We see this quite a bit in promoting expertise. A myriad of various shopping for platforms, information companions, publishers, analytics instruments, CRM, segmentation instruments and extra. Typically, it turns into so messy over time that it is exhausting to get the actionable information you have to create insights, actions, and enterprise influence.
Entry to a number of information units doesn’t equal good information. Taking a look at information units in silos is a straightforward approach to paint the flawed image, which will increase the probability of poor decision-making.
Knowledge is thrilling, however you want to have the ability to view it in a single place, which is why I feel the rules of vertical integration needs to be carried out right here.
Vertical pondering
Vertical integration is a method that permits an organization to streamline its operations by taking direct possession of processes. In different phrases, it means that you can management your individual future. In principle, it provides companies larger efficiencies, lowered prices, and extra management of the manufacturing and distribution course of. Tesla is a well-known instance of this mannequin observe.
Tesla carried out vertical integration throughout its enterprise construction — however with a serious concentrate on two key points: battery manufacturing and vitality storage. Tesla knew that batteries have been essential to EVs – and that success hinged on proudly owning a extremely contested battery provide chain. This enterprise allowed Tesla to leverage its experience in battery expertise and apply it to the vitality storage market, creating synergies and shared assets throughout completely different product strains.
It does all the things from designing the vehicles, constructing the tech, and making its personal chips to promoting the vehicles. Every thing is in-house, which means provide chain points or manufacturing companions do not gradual it down. This integration has helped the corporate scale its operations, drive technological developments, and place itself as a sustainable transportation and vitality options chief.
Proudly owning your information can work in the identical method. However with out the necessity to construct a multi-billion greenback gigafactory in Nevada.
By taking management of your tech stack and possession of your data, you acquire a extra holistic view of what’s occurring with your enterprise. And also you additionally insulate your self from points within the outdoors world.
That is invaluable by itself. However this singular view turns into much more highly effective while you issue within the exponential progress of AI and ML applied sciences. Making use of these instruments to a vertically built-in information set can remodel a enterprise and unlock beforehand unknowable insights.
Basically in case your information is disparate and never effectively built-in, you may by no means get to the “Unknown Unknowns”—the stuff you did not even know to ask about. There are patterns invisible to human eyes. You possibly can solely see these with good information.
Extra insights. Extra effectivity. Extra management. Vertical integration provides companies management of their provide chains. However there are challenges, too. Even when you aren’t constructing large factories, you want funding and assist to make the required adjustments. And most significantly, you have to be sure that changing into self-reliant doesn’t suggest you get tunnel imaginative and prescient and lose sight of developments outdoors your enterprise.
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Knowledge and elephants
For those who take a look at completely different information units in isolation, you’ll probably emerge with an incorrect thought of what an elephant — aka your enterprise — actually is.
You is likely to be partly proper in locations, however additionally, you will be fully flawed.
Vertical integration permits leaders to see the complete image of their enterprise — from buyer to inventive, hoof to tusk.
