It is important to say that innovation influences the market and its operators, especially about competition conditions.
One of the most significant technological advances relates to the possibility of capturing a huge amount of information and the rapid processing thereof (two of the main features that make up the phenomenon known as big data). This not only entails the emergence of specialised operators in these activities, but also makes a “data economy” possible.
In this regard, it expands the profitability of business models based on data and gives more strategic value to the collection thereof. The increased possibilities of obtaining revenue from the information lends greater efficiency to the strategy of setting a price of zero in one of the markets on which platform-type (two-sided) business models depend.
However, the market in which an operator offers its service at zero cost is not free from possible competition problems in parameters other than price (significantly, quality: whether understood as adequately classified information or the level of privacy offered to users).
Therefore, the competition authorities must necessarily abandon a price-centric perspective and enter into an assessment of other parameters already foreseen in the Competition Act.
Innovative companies that understand this, can extract that hidden value and reap huge benefits.
Data’s worth is its unlimited potential for reuse: the option value. What really matter for the value of data is its use and not its possession.
Data science can have incredible benefits for your business. With data science and predictive analytics, in particular, you can predict useful metrics and trends for your business. Such an approach can help you improve your ability to serve your customers or otherwise compete in the market.
