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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 study a distinct a part of the elephant. The trunk. The ears. The tusks… You get the gist.
Consequently, every particular person involves a really completely different conclusion about what an elephant is.
They’re all partly proper — but in addition completely incorrect.
The ethical of this story is easy. Completely different views and incomplete info can result in various — and infrequently inaccurate — interpretations. It is an outdated story. But it surely’s a fable we should always pay shut consideration to in our trendy world. Particularly when working with knowledge.
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Much less will (nearly) all the time be extra
Enterprise leaders worldwide wish to use their data to make better decisions and get extra correct insights into their enterprise.
However usually, companies may have a number of layers of their tech stacks. Some are new. Some are outdated. Some are built-in. Some are completely siloed. Every of those layers captures completely different knowledge. And also you get inaccurate insights when these items aren’t speaking to one another.
Companies have entry to extra knowledge than ever earlier than. However amount does not equal high quality.
For a lot of organizations, the precise high quality of their knowledge is being diluted. You create misaligned incentives by having so many alternative parts in your tech stack. One side of your stack might let you know 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, knowledge companions, publishers, analytics instruments, CRM, segmentation instruments and extra. Typically, it turns into so messy over time that it is arduous to get the actionable knowledge that you must create insights, actions, and enterprise impression.
Entry to a lot of knowledge units doesn’t equal good knowledge. Taking a look at knowledge units in silos is a straightforward approach to paint the incorrect image, which will increase the chance 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 believe the ideas of vertical integration ought to be carried out right here.
Vertical considering
Vertical integration is a method that enables an organization to streamline its operations by taking direct possession of processes. In different phrases, it permits you to management your individual future. In principle, it offers companies better efficiencies, decreased prices, and extra management of the manufacturing and distribution course of. Tesla is a well-known instance of this mannequin follow.
Tesla carried out vertical integration throughout its enterprise construction — however with a significant give attention to two key points: battery manufacturing and vitality storage. Tesla knew that batteries have been important 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 traces.
It does every part from designing the vehicles, constructing the tech, and making its personal chips to promoting the vehicles. All the pieces is in-house, that means supply chain issues or manufacturing companions do not sluggish 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 knowledge can work in the identical means. However with out the necessity to construct a multi-billion dollar gigafactory in Nevada.
By taking management of your tech stack and possession of your info, you acquire a extra holistic view of what’s taking place with your enterprise. And also you additionally insulate your self from points within the exterior world.
That is invaluable by itself. However this singular view turns into much more highly effective once you issue within the exponential development of AI and ML applied sciences. Making use of these instruments to a vertically built-in knowledge set can remodel a enterprise and unlock beforehand unknowable insights.
Basically in case your knowledge is disparate and never nicely built-in, you’ll be able to 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 knowledge.
Extra insights. Extra effectivity. Extra management. Vertical integration affords companies management of their provide chains. However there are challenges, too. Even for those who aren’t constructing enormous factories, you want funding and help to make the required modifications. And most significantly, that you must be sure that turning into self-reliant does not imply you get tunnel imaginative and prescient and lose sight of developments exterior your enterprise.
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Knowledge and elephants
If you happen to have a look at completely different knowledge units in isolation, you’ll probably emerge with an incorrect thought of what an elephant — aka your enterprise — actually is.
You is perhaps partly proper in locations, however additionally, you will be completely incorrect.
Vertical integration permits leaders to see the complete image of their enterprise — from buyer to artistic, hoof to tusk.
