Under the title “The New Data Economy: Transforming Business Models,” Synergic Partners and CEOE have organized today, the session celebrated at the headquarters of the Spanish Confederation which was inaugurated by the president of the Digital Society Commission of the CEOE, Julio Linares, and by Carme Artigas, CEO and Co-Founder of Synergic Partners. The event included a round table where successful Big Data use cases were presented, relating to the energy, transport, retail and financial sectors.
In his presentation, Julio Linares pointed out that, in the digital transformation process, the most advanced sectors have logically been those related to new technologies, followed by the financial and industrial sectors, and that the slower sectors have been those related to government, public administration, health care and education. He outlined three distinct classes of businesses: those that are born digital, those that “revolutionize” to adapt quickly to the new situation, and the traditional ones, that are slow to change. If in a digital company, all of the processes are digital and there is an intensive use of information, in the traditional ones, only some processes are digital and there is little use of information.
He also referred to the levels of digitalization in companies around the world and pointed out that, of the top ten companies on the stock market, the top five are digital as well as North American: Apple, Google, Microsoft, Amazon and Facebook; and that the value of those five companies is three times greater than the Spanish GDP, while numbers 9 and 10 on the list are held by the Chinese companies Tencent and Alibaba. Europe lags far behind in the ranking. With respect to digitalization in Europe, Spain would be number 14 and, globally, number 35. The collective responsibility before this situation leads us to challenge it, through pedagogy and concrete proposals that can be put into motion. From there, the CEOE has elaborated the Digital Plan 2020, in which the digitalization that will transform business models is detailed, and it is not an option but a necessity to be competitive and create jobs.
For her part, Carme Artigas began her speech by affirming that “strategic planning died because it is impossible to predict where we are going. Data has become the center of the economy and soon will be the way to assess companies, given that a company with larger quantities of data of better quality should be worth more than ones without them.” She pointed out that we find ourselves in “a world in which Big Data is already a commodity and has nothing to do with technology but rather with business.”
The co-founder of Synergic Partners presented seven strategies for facing technological disruption, opting for the redefinition of the core of business, as GE did, and the disruption of the business itself as, for example, many banks are doing, and she highlighted that Big Data forces the reinvention of directors. “Currently, a director devotes 54% of their time to administrative and control tasks, 30% to problem solving, 10% to strategy and innovation and 7% to personal development. With the interruption of digitalization, artificial intelligence and Big Data, a director can devote 64% to problem solving, 21% to strategy and innovation and 15% to personal development.” Artigas points out that “today, undervalued capacities such as social competences will be key in the future, given that decisions will be made online as directors will not have all of the knowledge or information. Technologies will grow exponentially and organizations will adapt more slowly, creating a gap, and directors will have to fight to reduce that gap, using leadership and adapting themselves by promoting cultural change.”
The meeting consisted of a round table, moderated by Carme Artigas, in which she detailed some success cases in the implementation of Big Data. In addition:
Rodrigo Hilario Noailles, Strategy Director at Grupo Renfe, pointed out that the new data economy in the framework of the liberalization of their sector is a question of strategy; Juan Andres Pro Dios, Information Systems Director at El Corte Ingles, explained that technology has opened new forms of business for the company, an important point considering that the company is already present in nearly every sector; Juan Carlos Reyes, Corporate Director of New Distribution Models at Bankia, explained how their company uses data to operatize the strategic idea that the client is the center of the business; and Ramon Morote, Chief Data Officer at Gas Natural Fenosa, affirmed that “we have a lot of data that gives us the exploratory capacity for new business and the capacity to improve the efficiency of our current business.”
The day was concluded by Alvaro Ramos-Catalina, Head of Associated Businesses of the Department of Business and Organization at the CEOE, who emphasized as a main conclusion of the day that data is the petroleum of the future, the prime material that will provide competitiveness and efficiency to business activity.