KITA News and Reports
  • Big Data Can be Purchased like Commodities
    2018-04-12

     

    Big Data Can be Purchased like Commodities

    -      KITA compares big data transactions between Korea and China suggests concrete ways for companies to utilize it -   

     

    New markets where big data can be bought and sold like commodities are attracting attention in Korea and China.

     

    According to a report titled "A Comparison of Big Data Transactions between Korea and China: Focusing on Corporate Use" issued by the Institute for International Trade (President, Shin Seung-kwan) of the Korea International Trade Association on April 9, the global Big Data market will grow to US $210 billion by 2020 and China is expected to become a big data power house, which accounts for 20 percent of the world's big data volume. The size of the Big Data market in China is estimated to reach US $2.7 billion by 2016, and Korea will be US $330 million.

     

    At every stage of supply chain using big data, innovation and development are emerging as a major challenge for enterprises. There are platforms, in which big data can be traded like commodities, and through them, there are more and more cases that legitimate big data are shared and utilized among the companies.

     

    However, the rate of introduction of big data system by IT companies in Korea is only 5.8 percent and 37.2 percent of the companies that have not introduced big data system have not yet utilized it because of the reason that ‘they do not own big data’.

     

    In order to enhance the utilization of big data through business-to-business transactions, Korea and China are continuously fostering the market by establishing and operating big data distribution agencies. If a company wants to purchase big data products in Korea, they can purchase them freely from the data store. If a company wants to use the Chinese platform, it needs to become a member of the Guiyang Big Data Exchange or Shanghai Data Exchange Center through certain level of screening process. 

     

    It means that even if a company does not have big data in its own right, it can now purchase processed big data products and utilize them in a various ways to improve the company’s productivity, product innovation, marketing strategy and customer service. However, a thorough review over the things to be concerned when trading big data products, such as transaction requirements and procedures of each platform, costs and legal matters and contract writing tips, is required in advance.

     

    On the other hand, the number of data products that can be purchased through Korean or Chinese big data trading platforms is insignificant compared with the amount of big data produced globally. Therefore, in order to promote this, institutional support should be provided along with the support for businesses.

     

    Park So-young, a senior researcher at the Korea International Trade Association said, Korean companies who want to purchase big data products can benefit from consulting services and purchase costs supports as well as easy access to trading platforms such as data stores. However, she also stressed, The data transaction of existing data products is only in the beginning stage compared to the entire market size of big data. Therefore, it is necessary to improve the data sharing environment of enterprises, nurture experts, and assist the legal system.

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