Study: More efficient use of big data calls for deeper understanding of its potential and allocation of resources to skills development
A large number of Finnish companies have failed to grasp the business potential offered by large bodies of data, concludes a study on the exploitation of big data. As a solution, the report proposes additional resources for teaching skills to harness the data and related experimentation. The study was published on 11 April 2016 in the as part of the Government’s analysis, assessment and research activities.
The final report on the project headed by the Research Institute of the Finnish Economy ETLA assesses the business potential of big data in various fields of activity, the potential for the development of big data and MyData applications as well as the legal framework for the provision of services in the public sector.
The objective of the project was to look into the business potential offered by big data for Finnish companies and the provision of public services, as well as to support the drafting of new national data protection legislation based on the EU Personal Data Protection Regulation by identifying the legal framework for the use of data. The findings can be used in the implementation of the measures foreseen in the Government’s key project for the creation of a digital business environment. The goal of this key project is to promote the use of big data in business and encourage MyData experiments.
Better decisions, products and customer experiences
A survey into the use of big data by Finnish companies was carried out in November 2015. A total of 1,189 companies responded to the questionnaire. Close to one quarter of the respondents reported that they collected or harnessed big data in their business operations.
Among the pioneers in the use of big data are companies engaged in the energy sector as well as financing and insurance. Medium-sized and large companies are clearly more likely to harness big data than smaller firms. Similarly, it is the mid-size and large companies where the share of big data in business operations is assumed to grow the fastest.
More generally, the business potential was expected to materialise in that companies would be able to make better evidence-based decisions and in that their competitive position, product quality and customer experience would improve.
However, a large number of Finnish companies still fail to grasp the business potential provided by the extensive use of big data. Another important factor limiting or preventing the effective use of big data is the lack of skills and expertise to process and analyse large bodies of data.
To be able to harness this potential, it is of vital importance to allocate resources to enhance the skills required for the processing, management and analysis of the data, provide socio-economic training for the needs of the digital economy, as well as to promote research and innovation to support the exploitation of big data.
MyData plays a key role in developing a big data ecosystem
It emerged in the interviews and workshops with corporate and public-sector parties that the most important things in harnessing big data are the suitability of the data; increase in the number of points at which the data is collected; gathering of the data on a more real-time basis; the predictability potential generated by the growth in the volume of data; the utilisation of various types of merged data; and the use of user experience data.
The challenges cited by the respondents included the size of the mass of data; whether the data are available free of charge or not; ownership and access issues; risk of misuse and loss of data; and the ambiguities related to the rights of the parties supplying the data.
MyData may be present in practically any body of big data, which is a matter of critical importance to the efforts to develop the big data ecosystem. For example, the health care system is increasingly providing services combining several types of data based on personal health information.
To respond to the challenges presented by MyData, new operating procedures are called for where the focus shifts from legislation to the tools needed for managing the data. One of the most promising ideas proposed to develop MyData tools is blockchain technology, which is suitable for distributed data verification and processing, security solutions as well as the sharing of value or resources.
Innovative tools for the public sector
From the legal point of view, the progress made in utilising big data will have the greatest impact on the protection of personal information. A number of international examples show that when determined efforts are undertaken to make efficient use of the full potential of big data while at the same time complying with data protection laws, new solutions can be found that not only affect the established ways of working but also the roles of public-sector participants.
It would be advisable for the public sector to carefully assess the suitability and development potential of these solutions for Finland. New tools offer opportunities to enhance efficiency in the public sector, improve the standard of services, increase transparency in decision making and resource allocation and promote the uses of big data (e.g. reuse for other purposes).
Participating in the project “Harnessing Big Data to Generate Business and Efficient Public Services” were the Research Institute of the Finnish Economy ETLA, MDI, Forum Virium, Business Law Finland Oy and Spark Legal Network. The project was part of the implementation of the Government Plan for Analysis, Assessment and Research for 2015.
The project steering group included representatives from the Ministry of Transport and Communications, Ministry of Education and Culture, Ministry of Employment and the Economy, Ministry of Finance and the Ministry of the Environment.
For more information on the Government’s analysis, assessment and research activities, visit tietokayttoon.fi/en
Inquiries: Heli Koski, Head of Unit, Research Institute of the Finnish Economy, tel. +358 (0)50 466 3214
