Benjamin Grolimund, regional head of Middle East and Africa, Bloomberg LP.
We’ve all heard the claim that data is the new oil. But just like oil, data needs to be refined before it can be of any real use. To put it more specifically, capturing data and using it effectively are two very different things.
If businesses want to reap the benefits from the power of data in the future, there will need to be greater transparency and simplicity – more disclosure alongside better interpretation. Interestingly, the Middle East and Africa (MEA) region offers a glimpse into this process or ‘data evolution’ as, in recent years the region has become more sophisticated in how it gathers data, but also in how it shares information.
In the MEA region, there is broad acceptance that the transparency and availability of data needs to increase in comparison to more mature markets. However, this is changing as the corporate domain demands more data to fuel investment decisions. Regulators and supranational bodies are also pushing for greater transparency, and there is a growing appetite for data on consumer sentiment related to markets.
But what will be the benefits from new forms of data in the future? In short, by having access to accurate, timely information that is distilled into actionable insights, business leaders can make more effective decisions.
In addition, greater access to credible insights can serve to build trust, which makes investors more confident. It can facilitate the successful completion of M&As and IPOs, by making the due diligence process less laborious, as well as helping to avoid surprises down the line.
Increased financial data can shine a spotlight on businesses, making it easier for them to transact and trade. This can also extend to securing finance or meeting environmental, social and governance (ESG) capital requirements. Fundamentally, better data supports economic progress.
In the corporate world, Accenture analytics have said that more than half (52 percent) of the organisations with future-ready operations are already using data and analytics at scale. They also say that this data-led transformation extends to a complete reimagining of businesses.
However, better data does not just mean more data. There is a persistent threat in the information age of information overload, and decision makers in the future may find themselves grappling with a level of information that is far greater than their information processing capacity. As an example, the data pool from financial institutions is vast, yet fragmented, and this is where companies and institutions play a crucial role in distilling this information and presenting it in an accessible and digestible way.
Increased financial data can shine a spotlight on businesses, making it easier for them to transact and trade.
We must also acknowledge that data is for everyone, not just decision makers – it should be accessible yet inclusive. Democratising financial data, explaining trends and providing contextual information can go a long way in helping societies move forward. If data helps someone understand the reality of a situation, then they are much better equipped to do something about it.
We’ve recently put this approach into practice with the Bloomberg Islamic Development Bank Partnership (ISDB), which seeks to educate students and professors on accessing Islamic finance data. This partnership will give access to data insights to 25 universities across nine countries, from Nigeria to Indonesia, via the gulf and CIS regions. Therefore, we see that the evolution of data is not constrained by borders or limited to only developed nations, but rather it can be inclusive with active participation from across the world.
Overall, we’ve also seen attitudes change towards data sharing across MEA. The Egyptian Exchange (EGX), for example, is encouraging companies to participate in the 2022 Bloomberg Gender Equality Index (GEI). More than 100 listed companies from across the region are eligible to submit their gender-related data to the GEI, which provides a reference point for investors fulfilling diversity and equality-related portfolio mandates.
Recently, the Saudi Exchange (Tadawul) launched ESG guidelines, which will include reporting options for companies to measure their progress and ultimately unlock the benefits from a sustainable approach to corporate growth.
In international development we are also observing that data action can add immediate value for governments, international government organisations (IGOs), and the people they serve. The United Nations Secretary-General António Guterres has spoken about the use of actionable data for the organisation, saying: “In agile iterations, we will master analytics capabilities that help us better understand ‘what happened’, ‘why it happened’, ‘what may happen next’, and ‘how to respond’ with insight, impact and integrity.”
The Saudi Exchange launched ESG guidelines which will include reporting options for companies to measure their progress.
In the future, open financial data will be of greater use in the public domain for individuals as it will enable them to make informed decisions about their finances. One of the benefits of financial data is that most of it is regulated and audited to ensure independence and accuracy. As for Bloomberg, our business is to ensure that the data we share is accurate and disseminated in a timely manner.
Although a valid question remains: what’s the difference between acquiring data and producing valuable insights? The difference here is the work that goes on to translate the data into insights, as well as the technology that is used to support the ‘refining process’.
Once the data is acquired, it needs to be cleaned, sorted, and standardised before it can be sent through the appropriate applications and analytical tools to make sense of it. At this point the data can be called insights.
The refining process can be expensive, with many industries claiming that for every dollar a firm spends acquiring data, they spend five-to-six dollars to turn it into digestible insights. At Bloomberg our value proposition is that our standardised data feeds link to our pre-integrated enterprise products, which is the most efficient insight creation solution on the market.
Even though the public are already using data consciously and subconsciously, the rise of super-fast, real-time data, especially financial data, will power the economies of the future and enable individuals to govern decisions in all aspects in their lives.
As the world looks for answers to the challenges and opportunities of the future, people and businesses will seek more insights, not just more information.
Benjamin Grolimund, regional head of Middle East and Africa, Bloomberg LP
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By Benjamin Grolimund
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Why the future of data is more insight not just more information
By having access to accurate, timely information that is distilled into actionable insights, business leaders can make more effective decisions
We’ve all heard the claim that data is the new oil. But just like oil, data needs to be refined before it can be of any real use. To put it more specifically, capturing data and using it effectively are two very different things.
If businesses want to reap the benefits from the power of data in the future, there will need to be greater transparency and simplicity – more disclosure alongside better interpretation. Interestingly, the Middle East and Africa (MEA) region offers a glimpse into this process or ‘data evolution’ as, in recent years the region has become more sophisticated in how it gathers data, but also in how it shares information.
In the MEA region, there is broad acceptance that the transparency and availability of data needs to increase in comparison to more mature markets. However, this is changing as the corporate domain demands more data to fuel investment decisions. Regulators and supranational bodies are also pushing for greater transparency, and there is a growing appetite for data on consumer sentiment related to markets.
But what will be the benefits from new forms of data in the future? In short, by having access to accurate, timely information that is distilled into actionable insights, business leaders can make more effective decisions.
In addition, greater access to credible insights can serve to build trust, which makes investors more confident. It can facilitate the successful completion of M&As and IPOs, by making the due diligence process less laborious, as well as helping to avoid surprises down the line.
Increased financial data can shine a spotlight on businesses, making it easier for them to transact and trade. This can also extend to securing finance or meeting environmental, social and governance (ESG) capital requirements. Fundamentally, better data supports economic progress.
In the corporate world, Accenture analytics have said that more than half (52 percent) of the organisations with future-ready operations are already using data and analytics at scale. They also say that this data-led transformation extends to a complete reimagining of businesses.
However, better data does not just mean more data. There is a persistent threat in the information age of information overload, and decision makers in the future may find themselves grappling with a level of information that is far greater than their information processing capacity. As an example, the data pool from financial institutions is vast, yet fragmented, and this is where companies and institutions play a crucial role in distilling this information and presenting it in an accessible and digestible way.
We must also acknowledge that data is for everyone, not just decision makers – it should be accessible yet inclusive. Democratising financial data, explaining trends and providing contextual information can go a long way in helping societies move forward. If data helps someone understand the reality of a situation, then they are much better equipped to do something about it.
We’ve recently put this approach into practice with the Bloomberg Islamic Development Bank Partnership (ISDB), which seeks to educate students and professors on accessing Islamic finance data. This partnership will give access to data insights to 25 universities across nine countries, from Nigeria to Indonesia, via the gulf and CIS regions. Therefore, we see that the evolution of data is not constrained by borders or limited to only developed nations, but rather it can be inclusive with active participation from across the world.
Overall, we’ve also seen attitudes change towards data sharing across MEA. The Egyptian Exchange (EGX), for example, is encouraging companies to participate in the 2022 Bloomberg Gender Equality Index (GEI). More than 100 listed companies from across the region are eligible to submit their gender-related data to the GEI, which provides a reference point for investors fulfilling diversity and equality-related portfolio mandates.
Recently, the Saudi Exchange (Tadawul) launched ESG guidelines, which will include reporting options for companies to measure their progress and ultimately unlock the benefits from a sustainable approach to corporate growth.
In international development we are also observing that data action can add immediate value for governments, international government organisations (IGOs), and the people they serve. The United Nations Secretary-General António Guterres has spoken about the use of actionable data for the organisation, saying: “In agile iterations, we will master analytics capabilities that help us better understand ‘what happened’, ‘why it happened’, ‘what may happen next’, and ‘how to respond’ with insight, impact and integrity.”
In the future, open financial data will be of greater use in the public domain for individuals as it will enable them to make informed decisions about their finances. One of the benefits of financial data is that most of it is regulated and audited to ensure independence and accuracy. As for Bloomberg, our business is to ensure that the data we share is accurate and disseminated in a timely manner.
Although a valid question remains: what’s the difference between acquiring data and producing valuable insights? The difference here is the work that goes on to translate the data into insights, as well as the technology that is used to support the ‘refining process’.
Once the data is acquired, it needs to be cleaned, sorted, and standardised before it can be sent through the appropriate applications and analytical tools to make sense of it. At this point the data can be called insights.
The refining process can be expensive, with many industries claiming that for every dollar a firm spends acquiring data, they spend five-to-six dollars to turn it into digestible insights. At Bloomberg our value proposition is that our standardised data feeds link to our pre-integrated enterprise products, which is the most efficient insight creation solution on the market.
Even though the public are already using data consciously and subconsciously, the rise of super-fast, real-time data, especially financial data, will power the economies of the future and enable individuals to govern decisions in all aspects in their lives.
As the world looks for answers to the challenges and opportunities of the future, people and businesses will seek more insights, not just more information.
Benjamin Grolimund, regional head of Middle East and Africa, Bloomberg LP
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