In today’s digital world, data has become the most valuable commodity. Some have called it “the new oil” – a resource that will mint new corporate empires. Companies that can harness data effectively stand to make astronomical profits. As data’s value rises, a new class of data-driven corporations is emerging.

The Data Gold Rush

A gold rush is underway in Silicon Valley for data science talent. Top companies are paying millions to recruit experts who can make sense of massive datasets. Data scientists have become the most sought after hires. Their skills are seen as the key to unlocking the potential of big data. As data volumes explode, the demand for data interpreters will continue to accelerate.

Mining for Insights

Like oil, data’s value lies in its refinement. Raw data on its own means little. But analyzed and interpreted, it becomes a goldmine of customer insights. Companies like Google and Facebook have built vast data mining operations to understand user behavior. The resulting knowledge powers everything from ad targeting to product recommendations. Other corporations are playing catch-up, investing heavily in analytics.

Fueling New Products

For forward-thinking companies, data is the catalyst for innovation. Online insurer Lemonade used analytics to build an AI claims bot that approves payments in seconds rather than days. Disney analyzes park foot traffic to optimize ride wait times. Data even allows MLB teams to make better player decisions. Unlocking data insights can drive entirely new revenue streams.

Data Moats and Competitive Advantage

The most successful data-driven companies have built strong competitive moats around their data assets. The more proprietary data a company accumulates, the harder it becomes for rivals to compete. Google and Facebook have achieved near duopolies in digital advertising through such “data network effects”. Other tech giants are racing to amass their own datasets. Data abundance has become the foundation of long-term market dominance.

The Rise of Alternative Data

To gain an edge, Wall Street firms and hedge funds are purchasing more exotic “alternative” datasets tracked outside traditional sources. These include satellite images of big box store parking lots, credit card transactions, web traffic to car dealerships, and other unconventional indicators. Specialist alternative data providers have emerged to feed this demand. Even obscure data can offer unique signals for investing decisions.

Harnessing Data for Social Good

While data commercialization has minted many digital empires, some organizations are exploring data’s potential for humanitarian impact. The UN has called for a “data revolution” to improve development outcomes worldwide. Nonprofits are using data mining to optimize interventions like distributing bed nets in malaria-prone regions. Even data tools that drive profits can have social spillovers.

Recommendation algorithms help small businesses find customers. Ride-sharing data assists city planners. As data analytics advance, harnessing insights for social good represents a frontier. Collaborations between tech firms and NGOs could unlock win-win data opportunities.

The Data Divide

Amidst the data gold rush, inequalities are emerging around corporate data access. Tech giants can afford massive data science investments beyond the reach of most companies. This data “haves and have nots” gap leads to consolidation, as smaller firms struggle to compete with data-empowered giants. Some have called for data sharing mandates, so all businesses can benefit from analytics. Europe’s PSD2 banking directive allows open banking data access. However, firms with data advantages will likely resist calls for forced data sharing. For now, the data divide remains a growing risk, as leading data monopolies extend their reach across industries.

Data Empires of the Future

We are only beginning to grasp data’s transformative potential. As cutting-edge analytics like AI mature, new data-centric juggernauts will emerge across industries. The data winners of the future will combine massive datasets with advanced processing to build impregnable moats. Companies not investing in data capabilities today risk being left behind. We are entering a new era of corporate “data dynasties” built on analytics. Even FanDuel’s BlackJack is using data analytics to optimize gameplay. The data gold rush has only just begun.