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From episodic to interactive data

Data is not a new driver, but nowadays in modern times their power is without precedent.

Which is the difference? A correct Digital Transformation changes radically the approach of collecting and using data, from the reliance on episodic data to interactive data.

Episodic data were used before the Digital Transformation era, they are generated by discrete events, such as the sale of a product. Typically the insights of the episodic data come from analyzing aggregated after-the-fact data across products, segments, geographies, and so on; they cannot be used in real-time but only as drivers for retrospective insights. Episodic data are typically reserved and firms are not used to sharing them for competitive reasons.

Instead, through a Digital Transformation, firms can rely on interactive data. They are real-time data that interact directly with the customers. The power of interactive data is possible thanks to sensors and the internet of things (IoT) that collect and store millions of millions of data from activities done by the customers. Interactive data are more various than episodic data and they allow to offer a richer digital experience and expand business value proposition. Furthermore, they can be shared widely, in fact, sharing amplifies their value for example with third parties correlated with IoT.

Shifting from episodic to interactive data is not simple; beyond the infrastructure, the firm should create awareness about its usage and spread a positive culture among the people; but interactive data change totally the perspective, from past to present insights!

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