Monday, April 16, 2012

Analytics Smackdown: Big Data vs. The Federal Reserve

Who do you think would be more adept at predicting economic growth and gross domestic product, Big Data or the Federal Reserve?  What if a technology could incorporate all the supply chain data from 100 major companies and build a real-time picture of global economic activity?  Consider the financial  interactions that Sears, Home Depot, P&G have with their supply chains (suppliers, transportation networks, government officials, payments, etc...).  If all that data were aggregated, it would show a snapshot of about $500 billion of economic activity, or two percent of the world's GDP.  Using this snapshot as a starting point, it is possible to extrapolate the data to get a pretty good picture of how the economy is doing overall.  This economic forecasting is, of course, part of the Federal Reserve's portfolio, but now they have competition.  GT Nexus, an Oakland based company, has built the tool described above, and currently has contracts with over 100 large businesses to provide real time insight into global supply chain trends.  This innovative technology is a real game-changing application of Big Data - this is a MUST read.

Read the article.

(submitted by Judi)

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