Q&A: CURT: BIG DATA?
—“It’s overrated.”—Herbert S Vogelsang
Um. Pretty much.
In Knowledge of Human Beings:
I think that big data is a substitute for praxeology, because it is impolitic to speak praxeological under postmodernism – big data provides excuses for action without admitting that human behavior is predictable and stereotypical.
In Economics:
It does assist us in inventory management (efficiency) at the cost of increasing economic fragility (stored capital).
There is a fairly low limit to what can be learned about people from big data and almost all of it is predictable.
In Business:
Most business uses of data serve to prevent mal-entrenchment of the bureaucracy (lessening innovators dilemma)
Much business use of data tends to direct a business to certainty of revenue production rather than innovation, thereby maximizing short term and destroying the long term viability of the company (Sun, Microsoft, Apple, and now Google).
Most marketing uses of data simply decrease the cost of advertising to those who aren’t interested.
Big data does provide short term competitive advantage.
In government:
All increases in data have led to increases in taxation.
All increases in taxation have led to decreases in liberty.
All decreases in liberty have led to calcification.
Now if you look at that series of statements it’s rather obvious that the same behavior of increasing certainty and rents is the normal human behavior that leads to exhaustion of an opportunity, whereas what preserves the value of capital structures is GENERATING OPPORTUNITY that can then be exploited.
At present, small companies generate opportnity, producing off book losses that are hidden in the economy. While large companies buy the R&D of those smaller companies and obtain the profits of them through preservation of the concentration of capital in a customer-access organization.