“Information overload” was a popular term back in the late 90s/early 00s, when the Internet, with information just a click away, looked sure to drown us in detail. Fortunately, though, the expression soon fell out of use as we began to realize the non-threatening nature of data. Humans, as it turns out, are quite willing and able to swim in data; we simply filter out what doesn’t fit our daily lives.
Our brains are less buoyant, however, when it comes to the systematic organization and interpretation of raw data. This poses a problem in the modern world, as data can only become an asset—and ultimately inform decisions—when it can be analyzed precisely and consistently. And those decisions are often critical to the future marketing of the ocean and offshore industries.
Plane Thinking: Lessons from the Past
The challenges associated with understanding—and more accurately misunderstanding—data are not exclusively symptomatic of the information age. During World War II, the U.S. Navy began to study the durability of its aircraft fleet. Planes were meticulously inspected after deployment, and any damage was duly noted. The data compiled showed that the wings and central fuselage suffered the significant majority of damage. So, logically, the Navy assumed that greater armor was needed to fortify these targeted areas. Until, that is, a civilian mathematician pointed out a glaring flaw in the study: The Navy was only looking at aircraft that survived combat. In other words, the sample failed to account for the aircraft that suffered blows to the engines and forward fuselage and which, subsequently, didn’t make it back from their mission. In short, the data set was not representative, so how could the conclusions be? This story is featured in Black Box Thinking by Matthew Syed.
Making Sense of Data: Some Tips
Much of what we do at TSC Strategic relates to collecting, organizing and synthesizing data. Despite the absolute nature of data, using it to guide strategic planning is less apparent. Here, some of our market intelligence analysts offer a few pointers for how best to approach data capture and interpretation:
Carefully consider what data you need to collect. Then stop and think about it again. In the case above, the U.S. Navy’s data collection was driven by what data was available for collection. Downed aircraft were initially overlooked, which led to what would have been a fatally erroneous conclusion.
Never limit your horizons when it comes to data collection. John Manock, editor of SubCableWorld.com, always insists that data can come from unexpected sources. Once, when interviewing Keith Olsen, CEO of data center operator vXchnge, he was told: “if you want to know where new telecom infrastructure would be needed, follow the trade routes.” The correlation between submarine cable building and expanding trade routes has brought a whole new dimension to our subsea market intelligence.
Develop a methodology – the rules that will govern data analysis. Remember: no methodology is carved in stone. That may have been the case once, but in today’s digital world the landscape is always changing. Don’t be afraid to modify the approach.
Methodology should be consistent. Be flexible and willing to modify the methodology, yes, but you don’t want to alter the underlying principles unless they are disproven. A consistent methodology is the key to understanding long-term trends and patterns. With marine mining, for example, you can add new sources of data, but the most fundamental part of the methodology – measuring emerging demand for a nascent industry – remains the same. When studying a market over a multiyear period, consistency is imperative.
Don’t be afraid to admit mistakes. Balance the need for consistency with objectivity when it comes to the performance of the methodology. Mr. Syed’s book, referenced above, has a telling subtitle: “Why Most People Never Learn from Their Mistakes—But Some Do.” Learning from mistakes is an important part of information analysis.
Make sure the end-users of the data fully understand the methodology. This can be challenging (explaining the methodology of a project can be cumbersome), but people need to understand from where the conclusions are drawn.
Be prepared to source your data. This is undoubtedly one of the most important factors, but in many cases, people forget that they need to cite where their data originated or risk losing all credibility. Sourcing data is about as exciting as watching grass grow. In fact, it’s worse – it’s painful. But you have to be prepared to have your data challenged. You’ll notice that the U.S. Navy story above is sourced, twice. Make this a habit.
The analysis of data is not only fascinating, it has become a business-critical skill in the information age. As the ocean and offshore industries continue to harvest vast swathes of data, our abilities to unlock its potential as a strategic marketing asset will prove fundamental to advising clients and producing essential market intelligence reports.
