Connect to the Collective

Data has become the most valuable asset for organizations globally to improve their services and operations. The information economy is growing as organizations make substantial investments to unlock an edge. Over the next decade, the success of an organization in an increasingly competitive global economy will depend on its ability to effectively harness the power of data and information. The best estimates suggest that globally, we are collectively creating more than 300 million terabytes of data every day – and this number is only rising.¹

Simultaneously, the abundance of data and information sources presents great opportunities to discover valuable insights pertaining to customer and employee experiences, product pricing, cost dynamics, operational performance, risk analysis and more. In the era of customer-centricity, the transformation of data into an asset is the crucial factor that enable organizations to unlock novel business models and thrive in a competitive market.

Companies are often unable to realize the true value of the large volumes of data that they produce. This data frequently resides within a company’s internal database, providing some limited benefits for internal processes and decision making, but not much more. For the rest of the time, it just sits there, idle like a car parked in long-term storage. Why not apply the same principles from the emergence of the sharing economy? What happens if you move the car from long-term storage to a ride-sharing app?

That’s where collective intelligence comes in. Collective intelligence is possible when a network of participants shares information in a secure and controlled manner, allowing it to be used and interpreted outside of its organization of origin. Done right, the potential benefits of sharing data are significant. Not only can companies monetize their data assets, but the shared information can drive better decision-making, innovation and benefit entire industries, creating a whole that is more than the sum of its parts.

Encouraging companies to release what can be highly sensitive or even competitive information requires secure data sharing systems, robust data privacy, and greater control over where the information is going and how it is being used. In the first of this article series, we will explore this evolutionary journey from data silos to the future of data networks.

Many companies only rely on their own internal data during the decision-making process. An aversion to sharing internal data stems from a tendency for companies to create data silos. This often is not intentional: it is simply a symptom of the way data infrastructure grows organically, and without inter-company standardization. Different data owners use incompatible applications and formats that make exchanging information technically difficult. These incompatibilities mean that companies that want to share data often create complex bilateral data flows that cost time and money.

Limitations of data silos include:

One way to increase access to information is to use third-party aggregators that accrue data from multiple organizations – think aggregators such as flight price tracker Skyscanner or local search-and-discovery apps like Foursquare.

Data aggregators provide valuable services by pooling information and making it publicly available. Examples of these aggregators exist all around us, pooling data and providing services such as credit risk assessment, sanctions screening, fraud risk scoring and even identity verification. Pooling intelligence in this way helps to increase information flows, breaking down some of the data silos within an industry.

Using aggregators makes it easier for enterprises to monetize their data, by sending it to a small number of external providers, who integrate with many other data suppliers. It means that companies do not have to directly share data with their peers, some of whom may be competitors.

But this approach also comes with two primary drawbacks for data owners:

Companies can unlock the value of internal company data by removing the historical obstacles to effective data sharing. This is where collective intelligence brings value. Empowering organizations to share their data insights enables owners to capitalize freely on their information safely and securely. Instead of sitting idle, data can generate new revenue streams for its owners.

There’s also the realization that companies stand to make more than direct revenue by sharing internal knowledge. With more information out there, entire industries can grow. This distributed corpus of shared knowledge is the backbone of collective intelligence.

But this cannot be done without safeguards in place. Since data can be highly vulnerable to attack or misuse, collective intelligence must provide enhanced:

To remove the middleman and to capitalize on the powerful concept of collective intelligence, Onyx by J.P. Morgan has developed Liink by J.P. Morgan^SM (Liink), a scalable, peer-to-peer information exchange network that provides solutions to solve complex information sharing challenges.

Built on a private, permissioned blockchain-network, Liink enables participants to share information across its network, all while maintaining the three fundamental properties of information sharing: sovereignty, security and privacy. The advantage of a blockchain-based network such as Liink is that it prevents information from being altered or tampered, while ensuring full transparency on who the information is shared with. That means with Liink, network participants can exchange data privately while maintaining control over who they connect with, how the data is shared, and who can use it.

Liink fulfils the untapped potential of under-utilized data – the network represents the evolution of the information economy. Right now, we are breaking down silos within J.P. Morgan and other financial institutions and organizations, to build intelligence and share insights – however, this is just the beginning. As the benefits of smart knowledge sharing become more evident, we anticipate a shift in how organizations collaborate. We believe unlocking the latent value in our data will prove to be the catalyst for a new era of benefits for all.