Tuesday 23 April 2013

Big data, big bucks and big ideas


The embattled European Union appears to be looking to big data to contribute to much needed economic salvation, but like the cloud wherein big data lives, the ideas seem rather nebulous.


The idea was aired by Neelie Kroes vice-president of the European Commission responsible for the Digital Agenda in a speech to the European Institute of Innovation and Technology (EIT) Foundation Annual Innovation Forum in Brussels in late March.

"There is no doubt that we have entered the era of big data," Kroes said. "Some reckon that, currently, every two days, we create as much information as was created from the dawn of civilisation to 2003. Every two days! And it's growing at 40% per year. We can't miss out on that kind of growth opportunity."

According to Kroes, "In terms of economic value alone, this is a market worth tens if not hundreds of billions of euros per year. At a time when Europe desperately needs growth, this is exactly where we should be looking to create new jobs and new opportunities."

Data, Kroes said, was "The new oil, because it's a fuel for innovation, powering and energising our economy. Unlike oil, of course, this well won't run dry: we've only just started tapping it."

Certainly data won't run out. On the contrary, it's growing at an exponential rate, but unlike oil, it won't keep you warm, it won't get you from A to B and you can't turn it into all those plastic products essential to our way of life.

Nevertheless, Kroes conjured a vision of a 'data-driven economy' that "needs a helping hand, and the right framework." Data, Kroes said, "needs to be freely available for use and re-use. It needs to be easy to transport and inter-operate — without different rules and standards for every country and dataset. And it needs the framework that safeguards privacy and builds trust."

And she spelt out three European Commission initiatives towards this goal. "First, we are opening up new seams of data within a vibrant single market. Much of this data is already here with us: but held by our public administrations, locked up or unusable. This is data that is rich, comprehensive, and that taxpayers have already paid for…

"Second, we need to build trust. People have understandable concerns – like about how health data might be used. We can't do all these wonderful things until we build public understanding and confidence. … And third, Europe needs the industrial capacity to take the global lead in data. We are helping that from the EU. We will continue to fund innovation in the area of data products and services: from business intelligence and decision support to added value services."

Kroes concluded: "All in all, open data is a huge opportunity for Europe. A chance for citizens to benefit from amazing new products and services, a chance to boost many sectors of our society – from healthcare to democracy itself. And a chance to stimulate our economy, energised by a strong European data industry. This is a revolution: and I want the EU to be right at the front of it."

All of a sudden, it seems, big data is sexy, but it was not at all clear from Kroes' speech how the EC proposes to distinguish between a big data driven economy and what has for years been known as the IT industry, which of course would be useless without data to process.

That said Australia should take note of the EC's very high level, strategic focus on big data. It will certainly have a big impact on the IT industry, the economy and society as a whole.

The first steps are being taken. Last month the AIIA held a one-day summit in Canberra "Navigating Big Data". At its conclusion delegates were offered "an exclusive [AIIA] communique recommending regulatory changes or directions, and industry and community actions that will facilitate safe and effective uptake of big data benefits in the future with the intent of presenting key recommendations to relevant parts of government and industry so Australia is best positioned to derive productivity and economic gains from big data opportunities."

Meanwhile The Australian Government Information Management Office (AGIMO) has released a for-comment draft of its big data issues paper. AGIMO's ambitions are far more limited than the grand vision set out for the EU by Kroes. It primarily hopes to improve the management and analysis of the data sets that the government holds and improve government operations, policy development and service delivery whilst ensuring adequate privacy and security arrangements are in place.

If the EC's ambitions are even partially justified it's clear that there needs to be a significant focus on the potential for big data along lines indicated by the AIIA, across all areas of industry and government. They all depend increasingly on data, and lots of it.

This article first appeared on iTWire, Australia's leading independent IT&T news and information source.

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