Build Your Information Economy

The ideas presented in this article draw inspiration from a paper authored by Douglas Mirsky, published by the International Institute for Analytics (IIA). The paper draws parallels between the “production, usage, and consumption of data in an organization” and the “functioning of a nation-state economy”.

At a macro level, there is demand for data products by data analysts, data scientists, and business stakeholders. These individuals are eager to obtain data from either a well-structured market (a well-governed warehouse or delta lake with appropriate controls) or a secondary gray market, where they grab whatever data is available in any format. The supply side of this economy deals with the legitimate restrictions on access to and use of this information in decision-making.

Just like a national economy, an organization’s information economy exists on a spectrum. At one end, there is a command-and-control economy characterized by high centralization, limited access to data, and restricted usage. This could lead to a ‘Data Dictatorship’ environment if control is excessive and freedom is limited. On the other end, there is a free economy with minimal governance and controls. However, too much freedom with limited control can lead to a ‘Data Anarchy’ situation.

While the demanding actors prefer freedom and minimal regulation, it increases the inherent risk of data security. Therefore, an appropriate level of control is essential for a developing economy.

Understanding the state of the information economy and defining the right level of governance and compliance is critical. It helps limit the externalities of a free economy while fostering a data-driven culture. This can be achieved by setting priorities aligned with demand actors and enforcing the right governance and data quality standards from the supplying actors. Organizations should strive to improve and invest in infrastructure (the information highway) and make necessary structural improvements driven by changes and evolution in the industry.