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Data has emerged as the new currency across various industries, as exemplified by the recent implementation of a method to assess students’ level of need when applying for financial aid for higher education.

The Universities Fund (UF) and Helb will utilise the means testing instrument (MTI) to determine the level of need for each student when distributing loans and scholarships.

The goal of this method is simple: to ensure the needy ones receive less loans and full scholarships while those who are more affluent will receive more loans and less aid. The objective is to protect the underprivileged from hefty student loans.

According to UF, vulnerable students account for 14 per cent of the population, with severe needs (15 per cent), the needy (17 per cent), and the less needy (54 per cent).

Data will play a pivotal role in identifying the most deserving students among the applicants. Assessors will meticulously analyse the financial transaction history to aid in the assessment process.

The MTI will also consider factors such as the type of school previously attended (public or private), family size and composition (polygamous, monogamous, single parent, orphan), parents’ age, marginalisation, parents’ background, participation in government cash transfer schemes, gender, and expenditure on education for siblings, among others. This highlights the critical importance of focused data mining!

Unbeknownst to many, we generate a lot of data on digital platforms that we interact with. In order to maximise user engagement, social media businesses’ revenue models increasingly focus on collecting user data. The more time you spend on websites like Facebook, YouTube, or Instagram, the more likely you are to see ads and generate insightful data about your interests.

Facebook invented the like button in 2009 as a clever technique to capture our social connections. You may not realise it, but every time you like or comment on a post, you are providing Facebook with part of your data. As the world becomes more digitised, various individuals rely on their mobile devices for a plethora of tasks.

According to a new report from Data Sparkle titled ‘The Changing Landscape of Africa’s Mobile App Market’, Africans spend an average of four hours per day using their mobile phones. Additionally, they consume an average of 12GB of data monthly!

Is data the new currency? The answer is ambiguous. Data is limitless, far from information, and certainly not what we would call knowledge. When something is inherently unrestrained, it is difficult for it to be currency. Without context, data is meaningless.

Data has no intrinsic value and, if not read correctly, might do more harm than good. False data correlations have led otherwise competent people to the wrong conclusions. Consider the country’s political opinion surveys. Research firms could never precisely predict an election! Data may occasionally lead to inaccurate judgments, not just in politics but also in business.

On the flip side, data can be extraordinarily valuable when deployed correctly and used, as with the Mean Testing Instrument. Data can be a very critical driver of value. Data should be available for business models to produce profitable results.

Businesses may utilise data to help them make choices and create goods or services. Data may be acquired, compiled, and eventually sold. Google and Facebook are two examples of companies that use data to create an advertising platform and improve target marketing.

Data is the new currency, since it has become a vital resource in digital products and services. The large amount of data accessible has the potential to create significant insights and stimulate innovation. To fully realise the value of data, it must be stored, organised, and structured in a way that allows for quick access.
Data has immense value, but businesses and organisations have yet to understand how to utilise it effectively. Understanding data allows you to comprehend the past and present and, as a result, plan for the future.

— The writer is an Innovations Evangelist and a PhD Candidate