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 study 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 additionally solely incorrect.

The ethical of this story is straightforward. Completely different views and incomplete data can result in various — and sometimes inaccurate — interpretations. It is an outdated story. Nevertheless it’s a fable we should 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 need to use their knowledge to make higher choices and get extra correct insights into their enterprise.

However typically, companies could 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 Some are outdated.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 would 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 alternative parts in your tech stack. One facet of your stack could inform you one factor, however then the following half can contradict it. We see this quite a bit in promoting expertise. A myriad of various shopping for platforms, knowledge companions, publishers, analytics instruments, CRM, segmentation instruments and extra. Typically, it turns into so messy over time that it is onerous to get the actionable knowledge it is advisable create insights, actions, and enterprise affect.

Entry to numerous knowledge units doesn’t equal good knowledge. Taking a look at knowledge units in silos is a simple solution to paint the incorrect image, which will increase the chance of poor decision-making.

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

Vertical considering

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 personal future. In concept, it offers companies larger efficiencies, diminished prices, and extra management of the manufacturing and distribution course of. Tesla is a well-known instance of this mannequin apply.

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 had been crucial 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 every thing from designing the automobiles, constructing the tech, and making its personal chips to promoting the automobiles. Every thing is in-house, that means provide chain points or manufacturing companions do not sluggish 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 approach. 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 data, you acquire a extra holistic view of what’s taking place with what you are promoting. And also you additionally insulate your self from points within the outdoors world.

That is invaluable by itself. However this singular view turns into much more highly effective if 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.

Basically in case your knowledge is disparate and never nicely 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 affords companies management of their provide chains. However there are challenges, too. Even when you aren’t constructing big factories, you want funding and assist to make the mandatory adjustments. And most significantly, it is advisable be sure that changing into self-reliant does not imply you get tunnel imaginative and prescient and lose sight of developments outdoors what you are promoting.

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Knowledge and elephants

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

You may be partly proper in locations, however additionally, you will be solely incorrect.

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