Fail Cheaper, Fail Better

There are lots of reasons for the current boom (some would say bubble) in data, including cheap computing, sensors everywhere and lots of new algorithms. To all of those, perhaps we should add the rising likelihood of failure, both the expensive kind and the cheap kind.

The expensive kind is when your business or employer gets wiped out. That is happening with greater frequency. According to Richard N. Foster of Yale University, the average tenure of a company in the Standard & Poor’s 500 is now about 16 years, down from 60 years in 1959. More than big computers or huge databases, diversity of information is at the heart of what is called big data. That term may be somewhat hyped, but there is no doubt that analysis of standardized information is becoming the norm in more of our lives, from personal medicine to real-time analytics of big industrial machines. It is also cheaper to take risks and fail, both for start-ups and corporate divisions. Many costs that existed even a decade ago have fallen sharply. Computer hardware and software are now rented through cloud computing, social media is a proxy for much of marketing and a burgeoning number of business applications are sold cheaply in Google’s Android and Apple’s iOS stores.