In this engaging conversation, Benn Stancil, co-founder of Mode and insightful commentator on data, joins Shane Harder from Cronitor, David Hsu of Retool, and Brian Clark from Neon. They explore the modern data stack and the potential dissolving of analytics teams, comparing the analytics sector to a Ponzi scheme. The group discusses innovative database technologies that allow safe testing changes, and shares unique tips for captivating public speaking. The interplay of product simplicity and backend complexities rounds out their thought-provoking dialogue.
The modern data stack consists of cloud-based tools that companies use to build their data infrastructure amidst shifting market dynamics.
Benn Stancil critiques analytics teams, suggesting they often become bureaucratic rather than driving impactful decision-making within organizations.
Stancil emphasizes storytelling in data presentations, advocating for engaging communication that captivates audiences and enhances the application of insights.
Deep dives
The Journey of Data Entrepreneurship
Ben Stansel's journey as a data entrepreneur began with the founding of Mode, a business intelligence tool. Initially, he filled various roles within the startup, which allowed him to connect deeply with users' needs and preferences. His early engagement with writing for the Mode blog helped him discover a passion for data-driven storytelling, focusing on fun and insightful analyses of contemporary phenomena. Over time, this writing evolved into a regular Substack, where he continues to explore complex data topics and share insights with a broader audience.
Modern Data Stack Dynamics
The modern data stack is characterized as a collection of tools designed to help companies build their data infrastructure, favoring cloud-based solutions. It emerged in a time when data was seen as a valuable commodity and attracted significant investment from venture capitalists. However, the market has shifted, leading to a reevaluation of these tools and a recognition that many companies may not derive the expected value from data analytics. Stansel humorously notes that those involved in the modern data stack are often left to ponder whether they are really operating within a true data-driven culture.
AI's Impact on Data Investment
The rise of artificial intelligence has noticeably shifted venture capital interest away from traditional data companies to AI-driven startups. This transition has led to a reexamination of the fortunes made in the data space and a collective sense that the excitement surrounding AI may have diminished the perceived value of established data tools. Stansel discusses how the overwhelming hype in the AI sector has made data tools feel less innovative, leading many founders and investors to pivot their focus toward AI solutions instead. As a result, many data companies are left seeking new narratives to capture the changing landscape.
Rethinking Analytics Teams
Stansel provocatively questions the effectiveness of analytics teams in organizations, suggesting that the average company struggles to leverage analytical insights for meaningful decision-making. He describes analytics as something that often ends up being a bureaucratic function rather than a transformational tool, with many projects ending up as unimpactful outputs that fail to drive real change. By comparing the analytics industry to a Ponzi scheme, he highlights how analytics teams are built on the illusion that better decisions will naturally follow from having data. This calls into question the common belief that every business requires a dedicated analytics team to thrive.
The Shift to Meaningful Engagement
In his writing and talks, Stansel emphasizes the importance of engagement over raw information, suggesting that creating entertaining and dynamic presentations can resonate more with audiences than delivering dry, formal content. He advocates for a style of communication that prioritizes lively storytelling and the sharing of ideas, nudging speakers to avoid excessively rehearsed presentations. By keeping audiences captivated and entertained through engaging narratives, speakers can enhance recall and discussion after their presentations leading to more practical applications of their insights. Ultimately, fostering engagement rather than merely relaying information can reinvent how data and analytics are communicated within organizations.
Benn Stancil’s weekly Substack on data and technology provides a fascinating perspective on the modern data stack & the industry building it. On this episode, Benn joins Jerod to dissect a few of his essays, discuss opportunities he sees during this slowdown & explain why he thinks maybe we should disband the analytics team.
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