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Data Is The New Oil — And That’s A Good Thing

Back in 2017, The Economist published a story titled, “The world’s most valuable resource is no longer oil, but data.” Since its publication, the topic has generated a great deal of discussion, and “Data is the new oil” has become a common refrain. The problem is that the discussion usually focuses on why this is a bad thing.

Sure, there are legitimate concerns about how tech giants are exploiting what they know about us. But at the same time, there are myriad ways in which all this data can (and does) improve the world.

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The world’s most valuable resource is no longer oil, but data

A NEW commodity spawns a lucrative, fast-growing industry, prompting antitrust regulators to step in to restrain those who control its flow. A century ago, the resource in question was oil.

Now similar concerns are being raised by the giants that deal in data, the oil of the digital era. These titans—Alphabet (Google’s parent company), Amazon, Apple, Facebook and Microsoft—look unstoppable. They are the five most valuable listed firms in the world.

Their profits are surging: they collectively racked up over $25bn in net profit in the first quarter of 2017. Amazon captures half of all dollars spent online in America. Google and Facebook accounted for almost all the revenue growth in digital advertising in America last year.

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Why Data is the New Oil by Sumeet Santani

Oil has traditionally been considered one of the most valuable physical assets for the last few centuries. But this important commodity may have a new replacement: Data.

The arrival of the computer and subsequent evolution of internet has created a human reliance on technology. It has given birth to the importance of data. The top five giants of the tech world – Apple, Amazon, Facebook, Google, and Microsoft – know more about our daily interaction with gadgets than we ever will. These companies are collecting vast amounts of data from tens of millions of users every single day.

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Data is the New Oil

Deep Learning is a revolutionary field, but for it to work as intended, it requires data. The area related to these big datasets is known as Big Data, which stands for the abundance of digital data. Data is as important for Deep Learning algorithms as the architecture of the network itself, i.e., the software. Acquiring and cleaning the data is one of the most valuable aspects of the work. Without data, the neural networks cannot learn.

Most of the time, researchers can use the data given to them directly, but there are many instances where the data is not clean. That means that it cannot be used directly to train the neural network because it contains data that is not representative of what the algorithm wants to classify. Perhaps, it contains bad data, like when you want to create a neural network to figure out cats among colored images, and the dataset contains black and white images. Another problem is when the data is not appropriate. For example, when you want to classify images of people as male or female. There might be pictures without the tag or pictures that have the information corrupted with misspelled words like ‘ale’ instead of ‘male.’ Even though these might seem like crazy scenarios, they happen all the time. Handling these problems and cleaning up the data is known as data wrangling.

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Data is the New Oil: Five Reasons That’s Not Necessarily A Good Thing

If the dot.com era has taught us anything, it’s that you can go a long, long way by serving up well-honed clichés with great conviction. Give away the razor and sell the blade. It’s like Moore’s Law for breakfast cereals.  Green is the new black. And the old favorite, data is the new oil. 

The data line, of course, underscores something that’s actually true. Data is valuable. Sifting through millions of data points has made Google a household word and changed everything from how movies get made to elections. We’re also on the verge of another technological era where people will be able to more easily capture and understand data motors, structural building supports and other inanimate objects to be able to reduce emissions and energy consumption, save lives and save time.

But there is also an ugly underside to the analogy, particularly in IoT..

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