Digital information is stored, shared and accessed more than any of the technologies preceding it. Investors have access to an enormous amount of information on every public company—information that can potentially influence stock prices and other investment opportunities. There are limitations to what any single person can take in, which makes computing power more essential than ever. Advanced analytics and superior processing technologies are key to extracting value and actionable insights from this abundance of information.
Here are a few examples of how data analysis is driving innovation and competitive advantages across the economy at large.
Data alone has little worth unless it can lead to timely and informed action. Data users must also exercise judgment and careful oversight, since blindly relying on data analysis can be dangerous. Our view is that the effective use of data requires careful stewardship from investment managers, and that the pairing of human judgement with technology produces the best results.
We believe investors should recognize its potential to reshape the economic landscape. As the changes produced by the Data Revolution continue to ripple across industries, those who can harness the power of big data may enjoy a competitive advantage.