The parable of “The Blind Males and The Elephant” tells the story of six blind males who come throughout an elephant for the primary time. They every look at a unique a part of the elephant. The trunk. The ears. The tusks… You get the gist.

Consequently, every individual involves a really totally different conclusion about what an elephant is.

They’re all partly proper — but in addition solely unsuitable.

The ethical of this story is straightforward. Completely different views and incomplete info can result in various — and infrequently inaccurate — interpretations. It is an outdated story. But it surely’s a fable we must always pay shut consideration to in our trendy world. Particularly when working with knowledge.

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Much less will (virtually) all the time be extra

Enterprise leaders worldwide wish to use their knowledge to make higher choices and get extra correct insights into their enterprise.

However usually, companies can have a number of layers of their tech stacks. Some are new. Some are outdated. Some are built-in. Some are completely siloed. Every of those layers captures totally different knowledge. And also you get inaccurate insights when these items aren’t speaking to one another.

Companies have entry to extra knowledge than ever earlier than. However amount does not equal high quality.

For a lot of organizations, the precise high quality of their knowledge is being diluted. You create misaligned incentives by having so many various parts in your tech stack. One side of your stack might inform you one factor, however then the following half can contradict it. We see this lots in promoting expertise. A myriad of various shopping for platforms, knowledge companions, publishers, analytics instruments, CRM, segmentation instruments and extra. Usually, it turns into so messy over time that it is onerous to get the actionable knowledge that you must create insights, actions, and enterprise influence.

Entry to a number of knowledge units doesn’t equal good knowledge. Taking a look at knowledge units in silos is a simple approach to paint the unsuitable image, which will increase the probability of poor decision-making.

Information is thrilling, however you want to have the ability to view it in a single place, which is why I believe the ideas of vertical integration ought to be carried out right here.

Vertical pondering

Vertical integration is a method that permits an organization to streamline its operations by taking direct possession of processes. In different phrases, it permits you to management your individual future. In idea, it provides companies larger efficiencies, decreased prices, and extra management of the manufacturing and distribution course of. Tesla is a well-known instance of this mannequin observe.

Tesla carried out vertical integration throughout its enterprise construction — however with a significant deal with two key facets: battery manufacturing and power storage. Tesla knew that batteries have been important to EVs – and that success hinged on proudly owning a extremely contested battery provide chain. This enterprise allowed Tesla to leverage its experience in battery expertise and apply it to the power storage market, creating synergies and shared sources throughout totally different product traces.

It does all the things from designing the vehicles, constructing the tech, and making its personal chips to promoting the vehicles. All the pieces is in-house, which means provide chain points or manufacturing companions do not gradual it down. This integration has helped the corporate scale its operations, drive technological developments, and place itself as a sustainable transportation and power options chief.

Proudly owning your knowledge can work in the identical method. However with out the necessity to construct a multi-billion greenback gigafactory in Nevada.

By taking management of your tech stack and possession of your info, you achieve a extra holistic view of what’s taking place with your corporation. And also you additionally insulate your self from points within the exterior world.

That is invaluable by itself. However this singular view turns into much more highly effective whenever you issue within the exponential development of AI and ML applied sciences. Making use of these instruments to a vertically built-in knowledge set can remodel a enterprise and unlock beforehand unknowable insights.

Primarily in case your knowledge is disparate and never effectively built-in, you may by no means get to the “Unknown Unknowns”—the belongings you did not even know to ask about. There are patterns invisible to human eyes. You possibly can solely see these with good knowledge.

Extra insights. Extra effectivity. Extra management. Vertical integration presents companies management of their provide chains. However there are challenges, too. Even when you aren’t constructing large factories, you want funding and assist to make the mandatory modifications. And most significantly, that you must be certain that changing into self-reliant doesn’t suggest you get tunnel imaginative and prescient and lose sight of developments exterior your corporation.

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Information and elephants

In case you take a look at totally different knowledge units in isolation, you’ll doubtless emerge with an incorrect concept of what an elephant — aka your corporation — actually is.

You is likely to be partly proper in locations, however additionally, you will be solely unsuitable.

Vertical integration permits leaders to see the total image of their enterprise — from buyer to inventive, hoof to tusk.