Gartner Keynote Has Web Buzzing About the #Algorithmic Business
At this year’s Gartner Symposium, keynote speaker Peter Sondergaard declared that the time of the algorithmic business has come, causing the hashtag #algorithm to blow up around the web.
“Data is dumb.”
So proclaimed Peter Sondergaard, Senior VP and Global Head of Research at tech research giant Gartner. Sondergaard gave the keynote address, titled “Bimodal IT: What CIOs Need To Know,” at the organization’s annual Symposium/ITxpo in Orlando last week.
Spend any time skimming news headlines that even vaguely have to do with technology, and one will often stumble across the phrase “big data.” To the untrained eye, big data — as defined by SAS Analytics — is simply the buzzword alternative for “the exponential growth and availability of data.”
Analysis of these data sets has created a substantial market, as corporations and small businesses alike use these huge sets to catch and capitalize on patterns in business, research, customer trends, and more.
So why the sudden vilification by one of the biggest names in tech research? The reason, says Sondergaard, lies in the huge achievements made possible by algorithms.
Algorithm-driven technology is at the heart of most successful customer service enterprises. Sondergaard cited paragons of the industry, Netflix and Amazon, as pioneers in the algorithm movement. These companies power large percentages of their sales and business through carefully calculated suggestions, each of them based on customer clicks and searches.
“Algorithms are where the real value lies. Algorithms define action. Dynamic algorithms are the core of new customer interactions,” Sondergaard observed.
The notion of algorithms as the next step after “big data” has quickly caught fire. Tech-oriented social media spaces burst into a frenzy, with the hashtag #Algorithmic springing up in Twitter mentions and articles across the globe.
“The new platform is less about data gathering and more about intelligent algorithms to act on the data,” Sondergaard observes.
TeamQuest CEO Paul Hesser wholeheartedly agrees. “Data doesn’t really tell (customers) anything,” Hesser concurred in a brief post-symposium interview. “What’s important are the analytics we apply on top of that data.”
Sondergaard’s message, then, came as no real surprise to TeamQuest.
“As an example, historical server health that we look at takes all of that data, and boils it down to one easy-to-understand number that we call the TeamQuest Performance Indicator,” Hesser said. “And that’s through several proprietary algorithms… that’s really key to our customers, because they don’t have the time to dig through 1,500 metrics.”
This is just common sense: this kind of matter-of-fact response to Sondergaard’s address isn’t some new paradigm of business thought, but a simple expression of the logical next step — after the “what” of big data, TeamQuest is answering the question, “what now?”
Algorithm application always results in savvier, smoother customer experiences. Tech-based companies stand to vastly improve efficiency and client satisfaction when they prioritize data analytics over pure data collection.
The fact that #Algorithmic is trending across social media is a bit ironic: after years of propelling other news subjects onto the global stage, the algorithm has finally become newsworthy itself. Are we hurtling headfirst into an algorithmic economy? It might take some time, but when the rest of the business world is ready to get algorithm-friendly, TeamQuest will be there to help them achieve their goals.
(Main image credit: 199it)