Big data promises to make the world more intelligent by identifying patterns and allowing decisions to be made based on large datasets rather than limited expertise. However, individual privacy must be protected and public interests considered. Economically, big data allows high-velocity analysis of large, diverse datasets to extract value. This changes business models and relationships as firms optimize operations and networks using data. Policymakers must ensure big data is used responsibly while creating opportunities for stakeholders.

1. Vermelding onderdeel organisatie
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Economic Challenges of Big data
Opening Statement
Claudia Werker
1st BYTE Workshop
Complex System Institute
Lyon, September 11th, 2014

2. Promises and Challenges of Big Data I
Making the world more intelligent, identifying patterns undetected before, taking decisions not based on the limited experts’ knowledge but on the huge mass of data from the inscrutable reality. This is the promise of big data.”
Smolan, R. and C. Kucklick (2013). "Der vermessene Mensch." GEO(08): 80-98, p.85.
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3. Promises and Challenges of Big Data II
“Self-interests of individuals, companies or institutions have limits, where the public interest is affected, and public interest is not a sufficient justification to violate human rights of individuals.”
Helbing, D. and S. Balietti (2011). "From social data mining to forecasting socio-economic crises." The European Physical Journal-Special Topics 195(1): 3-68, p.23.
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4. For the economy big data means …
“… economically extract(ing) value from very large volumes of a wide variety of data by enabling high-velocity capture, discovery, and/or analysis. There are three main characteristics of big data: the data itself, the analytics of the data, and the presentation of the results of the analytics. Then there are the products and services that can be wrapped around one or all of these big data elements.”
Gantz, J. and D. Reinsel (2012). "The digital universe in 2020: Big data, bigger digital shadows, and biggest growth in the far east." IDC iView: IDC Analyze the Future, p. 9).
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5. Questions
1.What are the potential economic impacts of big data?
2.How does big data create new opportunities and market?
3.How does it change business, business relationships and the economic landscape?
4.How can firms, consumers, policy makers and other economic stakeholders use big data in responsible ways, e.g. by guarding individual privacy?
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•Brown, B., M. Chui and J. Manyika (2011). "Are you ready for the era of ‘big data’." McKinsey Quarterly 4: 24-35, p. 6.

7. Business Model
Impact from big data
Examples
Value chain
big data enables further optimisation of operating value chains
can be used to move towards value network
retailing, manufacturing
Value shop
Change of mode of operation
Problems that customers can be helped with
Efficiency and scalability of services, e.g. by efficiently re-using data and analytics
lifesciences
Value network
Increase the overall value of the network
Capitalize on data generated by the network
public sector, health sector
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Business Models and Big Data (adapted from DNV GL AS. (2014). "DNV GL STRATEGIC RESEARCH & INNOVATION POSITION PAPER 4-2014." , p. 33

8. Way Ahead for Big Data I
1.What will be the value of big data?
a. empirical knowledge
b. automation and control of socio-ec. proc.
example:
Investigations of the E-Mini S&P which is a stock market index futures contract traded on the Chicago Mercantile Exchange's Globex electronic trading platform that in October 2012 60-70% of the price changes were due to self-generated activities (Filimonov, Bicchetti et al. 2014).
c. information
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9. Way Ahead for Big Data
2.Will there be proper markets with suppliers and consumer? networks
3.How will the political and legal system co- evolve with big data?
the value of big data and preferences of stakeholders
4.Who will benefit from big data and who not?
depends on answers to 1. to 3.
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