Analytics Advantage is a weekly newsletter of actionable insights, proven strategies, and top tips for getting the most from your data and making high-stakes decisions with confidence. Here’s a recent sample. We hope you’ll subscribe.

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There are these absurd statistics floating around about how much data is created every day.

They go something like “There’s more data created in the last year than all of recorded human history.”

Is that true? No one really knows–but it feels true.

Without thinking about it, we make a logical leap:
If there’s more data than ever, then we should know more about our world than ever before.

But we don’t. Why?

The Data-Industrial Complex is lying to you. There isn’t as much data as they say.

It’s Not as Abundant As It Seems

The primary source of these data volume statistics is an advisory company called International Data Corporation (IDC.) IDC is an advisory firm like Gartner.

How does IDC come up with their estimates of data volumes? Who knows–the report costs $7,500, and I’m not expensing that.

But here’s what they leave out:

1. They cite the volume of data created, not stored

When we hear “There’s more data than ever before,” we assume that most of this data is retained. That’s wrong. Only a small amount of the generated data is retained.

Curious, I went looking for the total volume of data storage capacity in the world. Guess who is behind the estimates of global storage capacity? IDC. Sigh.

2. They don’t differentiate between types of data

Second, they don’t differentiate between types of data. There are two main types of data in the world: Unstructured and Structured.

Unstructured Data

Unstructured data is the rawest form of data. It’s the raw dirt where nuggets of information hide. Examples include text files, social media interactions, product usage records, and photo or video images.

Structured Data

Structured data is what we most often think of when we think of data. It follows a set pattern, lives in a database or spreadsheet, and is easily used by humans and machines. It’s organized in columns and rows, making it largely predictable.

Why Does This Matter?

All this is well and good, but why is this important to understand?

Let’s do some rough estimates. Of the data generated:

• 10% is retained
• 8% is unstructured
• 2% is structured
• A small fraction of the 2% is actually used to make decision

There’s less data than we think. So every piece of structured data has to have a purpose.

As an overwhelmed data leader, you must create a framework to turn all of that data into action.

Introducing Data Ecosystems

I didn’t create this term. There is some content out there already defining a data ecosystem.

This is the start of our series on understanding and applying data ecosystems in your work.

What is a Data Ecosystem?

A data ecosystem is a dynamic, resilient system for turning data into action by meeting consumer needs. The ecosystem has two key players:

• Sources: Data products which are primary sources of information or are aggregators (gator, haha) of other primary sources or aggregators.
• Consumers: The people who use the data to make decisions.

Every source in the ecosystem has a role. Every consumer interacts with one or more sources in different formats.

The system rarely stays balanced—it’s constantly evolving. Just like the real world, there are countless hidden connections between sources and consumers.

Where Do We Go From Here?

In the next newsletters, we’ll explore how modern data teams can build a data ecosystem that serves their needs and those of their customers.

We’ll cover:

• How a data ecosystem works
• How to build one
• The benefits of a data ecosystem

We’ll also see how it helps your team find valuable insights in the vast amount of available data.

Let’s explore this wild world of data.

Shaun Davis, your personal data therapist, understands your unique challenges and helps you navigate through the data maze. With keen insight, he discerns the signal from the noise, tenaciously finding the right solutions to guide you through the ever-growing data landscape. Shaun has partnered for 10 years with top data teams to turn their data into profitable and efficiency hunting action. Learn more about Shaun.