As an accountant and entrepreneur, I’m always trying to keep track of the newest developments in my professional fields. I believe that it’s important to follow present-day trends in order to gain insight into the potential future of these industries. I’ve written previously about some of these major developments, including blockchain technology, the internet of things and the Tax Cuts and Jobs Act.
However, the next big thing I’ve been following has to do with the combination of two large trends. Currently, I believe that the intersection of two recent developments in business and technology will have a monumental impact on my career: the fledgling field of data science, and the Fourth Industrial Revolution.
The Intersection Of Data Science And The Fourth Industrial Revolution
For the sake of clarification, here’s a brief primer on both of these concepts.
As a relatively new field, data science seeks to improve the way we interact with the massive amount of information provided to us in the modern era. In the age of the Internet, smartphones and social media, the sheer volume of data available to businesses, politicians and researchers can be difficult to parse. Through a combination of previously existing methodologies such as statistics, programming and mathematics, this new scientific field has grown into a highly lucrative career path.
The term “Fourth Industrial Revolution” was coined by World Economic Forum (WEF) chairman Klaus Schwab in 2015. In an article he wrote for the WEF, he describes it as an exponential growth of several key technological fields that were previously born out of the digital-based Third Industrial Revolution. Some specific fields he cites as examples of this forthcoming revolution include artificial intelligence, quantum computing, the internet of things and 3-D printing, among others. Subsequent descriptions of the Fourth Industrial Revolution have gone on to include technological concepts, such as smart materials and blockchain technology.
These two emerging concepts interact in a symbiotic manner. What I mean by that is that the Fourth Industrial Revolution requires the proper implementation of data science to exist. At the same time, the effects of technologies and business ventures created through the Fourth Industrial Revolution provide new avenues of data, which can then be harnessed through the power of data science.
From Theory To Practice
Everything mentioned above makes sense in theory, but what does any of this actually mean in practice? As with any newly emerging trends and technologies, it can be difficult to cut through the buzzwords to understand what any of these concepts are actually capable of. Here are some real-world examples to help illustrate these terms in greater detail.
One of the major decisions Netflix made that helped it reach its current level of success, both as a popular streaming service and content creator, was the production and release of its first original show, House of Cards. A 2013 New York Times article (registration required) goes into more detail about the data-based research that went into this program. Essentially, the large quantities of data gathered by the streaming platform allowed Netflix to use data science and identify key factors (visual elements, subject matter, actors) that would result in a popular TV show. Consequently, incorporating these elements into their original programming essentially guaranteed its success, both among audiences and at awards shows.
When discussing the Fourth Industrial Revolution, there’s a particular product that illustrates its current and future potential in the same way as the steam engine encapsulated the potential of the first Industrial Revolution. That product is Amazon’s Alexa — an AI virtual assistant powered by machine learning and able to connect with the Internet of Things. As a 2018 Amazon Developer blog post puts it, Alexa “is about removing friction in our customers’ interactions with the physical and digital world,” which can be interpreted as the central thesis of the current data-driven revolution. The way it — and Amazon by extension — accomplishes this monumental task would simply not be possible without the previous three industrial revolutions, making it a true product of its time.
The Future Of Entrepreneurship
With an understanding of what these lofty concepts are and how they’re currently being implemented by businesses, what can we discern about the future? If you’re an entrepreneur looking to benefit from this unique intersection of science and technology, here are some of my personal suggestions based on extensive research and past experience.
First, it’s important to learn as much about these fields as you can. If you don’t have someone on your team who’s knowledgeable in data science, you should fix that. Many colleges now offer courses and entire major programs around this fledgling field of study, making it easier to recruit people with a solid academic foundation in this area. Alternatively, you can sponsor current employees to pursue data science certifications through online education providers like edX.
Additionally, look for professionals who have experience with projects or businesses relating to the Fourth Industrial Revolution. This is the strategy that Google and Amazon have been taking with their respective acquisitions of IoT companies Nest and Ring. However, you also need to be careful of existing regulations when planning your business of the future. For an excellent example of what can go wrong when attempting to disrupt current industries and laws, look into the story of Defense Distributed and its Ghost Gunner 3-D printer.
Although it’s never a bad idea to look at the actions taken by these companies for inspiration, it’s also important to attempt to innovate and take bold risks by pursuing new partnerships and business ventures. There’s a popular quote from mathematician and entrepreneur Clive Humby that sums up the current state of business: “Data is the new oil.” Ultimately, I believe that the path to success in the current age is to take this statement to heart and approach the intersection of these two big ideas with the aspirations of a modern oil baron. I believe that the company that successfully does this will become the next Google or Amazon.
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