#123—Christina Alaimo: The Hidden History of Data and its Role in Modern Strategy
Aug 9, 2024
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Cristina Alaimo, an Assistant Professor of Digital Economy and Society at Guido Carli University in Rome, explores the profound influence of data on modern strategy. She uncovers its historical roots, tracing back to ancient clay tokens and how data has shaped our identities long before the tech boom. Alaimo delves into the evolution of business ecosystems, illustrating the need for leaders to adapt to new data-driven opportunities. The discussion challenges traditional views, urging a social science perspective on data's implications for society.
Data has historically shaped societal structures and institutions, demonstrating its profound impact long before the digital age.
The evolving role of data within business ecosystems challenges traditional industry boundaries, enabling new value creation and innovative business models.
Deep dives
The Role of Data in Society
Data serves as a significant cognitive and communicative artifact that has been intrinsic to the development of society long before the advent of digital technology. Historical examples, such as the use of clay tokens for trade nearly 8,000 years ago, illustrate that data has always been vital for tracking transactions and facilitating exchanges. This establishes that data isn't merely a modern construct but a longstanding element that has shaped societal structures and institutions over time. Recognizing data's historical continuity allows for a deeper understanding of its transformative power in both businesses and social contexts.
Functional Dimensions of Data
Data performs multiple functions beyond simple communication; it aids cognition, knowledge creation, and media communication. The cognitive function reveals that data changes how individuals grasp and conceptualize realities, allowing for new understandings and ideas to emerge. For instance, the healthcare sector exemplifies how aggregated patient data can enhance medical practices, demonstrating the knowledge function of data in shaping professional domains. Lastly, media communication relies heavily on data, underscoring its role in organizing and interpreting information across various platforms.
Evolving Definitions of Industry
The traditional linear value chain that characterizes industries is increasingly being reshaped by the fluidity of data and its accompanying ecosystems. Modern industries no longer operate within rigid silos but rather engage in complex interactions where data sharing across sectors becomes the norm. This shift allows companies to create value through data complementarities, which is a critical departure from past industry boundaries. As seen with companies like TripAdvisor, traditional classifications give way to a more holistic, data-driven approach that can redefine business models and enhance user experiences.
The Production of Data and Competitive Advantage
Data should not be regarded merely as a resource to be harvested, akin to oil; rather, it must be understood as a continually produced element that shapes knowledge and opportunity. This perspective challenges the notion of controlling data access and emphasizes innovative data production practices as key competitive advantages for businesses. Companies must focus on generating new forms of data that open pathways for creative problem-solving and novel insights. This approach encourages organizations to rethink strategies about data, recognizing its potential as a catalyst for growth in an increasingly intertwined digital ecosystem.
Cristina Alaimo, is the Assistant Professor of Digital Economy and Society at Guido Carli University in Rome, Italy and soon to be Associate Professor at ESSEC Business School in France.
Her research focuses on innovation catalyzed by data-based services and the consequences it has on organizations and society. Cristina also studies the broader ecosystem of data exchanges in which digital platforms are embedded and how these new platform ecosystems emerge and evolve.
In her recently released book, DATA RULES: Reinventing the Market Economy, Cristina and her co-author Jannis Kallinikos, dive deep into the unprecedented social and economic restructuring brought about by data.
In this episode, we discuss:
The fascinating history and role of data in our society—well before even the tech boom, with its origins in writing itself
How many of the social constructions that we know of, even our own digital identities, are shaped and created by data
The four functions of data—and how business ecosystems are evolving the traditional functions to create new business models and value chains
What business leaders need to know to seize the new opportunities the evolution of data is creating, even breaking out of the traditional concepts of industries of business as we know it today
_______________________________________________________________________________ Episode Timeline: 00:00—Highlight from today's episode 1:01—Introducing Cristina + the topic of today’s episode 2:55—If you really know me, you know that... 3:48—What's your definition of strategy? 04:52—The historical function of data 08:40—The link between data and institutions 11:55—The interrelation between data and writing 15:12—The four functions of data 18:08—The data making process 22:43—Data's impact on ecosystems and platforms 26:38—TripAdvisor case study 30:25—Redefining industry concepts 33:02—Future of competitive advantage 37:44—How can people follow you and continue learning from you? _______________________________________________________________________________________ Additional Resources: Link to book: DATA RULES: Reinventing the Market Economy LinkedIn: https://www.linkedin.com/in/cristinaalaimo/ X: https://x.com/cristina_alaimo
Thank you to our guest. Thank you to our executive producer, Karina Reyes, our editor, Zach Ness, and the rest of the team. If you like what you heard, please follow, download, and subscribe. I'm your host, Kaihan Krippendorff. Thank you for listening.
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