On October 29, 2014, IBM and Twitter announced a partnership. Under the terms of this partnership, Twitter will provide IBM with data. In turn, IBM will permit customers to use its IBM Watson Analytics to work with Twitter data.
The Twitter data is often referred to as the “fire hose”. According to Statistic Brain, an average day sees some 58,000,000 Tweets. So it should be fair to say any effort to collect this volume of information, and, then, to analyze it, falls into the big data and analytics category.
So just who would be interested in the Twitter “fire hose”, and why? Reading further in the IBM press release one finds a clue: “The first joint solution will integrate Twitter data with IBM ExperienceOne customer engagement solutions, allowing sales, marketing, and customer service professionals to map sentiment and behavior to better engage and support their customers.” A brief look at IBM’s web site for its ExperienceOne service reveals a data analytics offer targeted to Chief Marketing Officer (CMOs), who usually lead “marketing, merchandising, sales, and customer service” (quoted from the ExperienceOne web site).
For an ISV like IBM to offer data collection, analytics, and even predictive analytics solutions, and the services required to successfully implement them, to a target market of CMOs from Lines of Business (LoBs), represents a major shift in focus from IBM’s familiar market of CIOs and enterprise IT organizations. In turn, the ExperienceOne offer stands as a testimony as to how the path by which technology innovation enters the enterprise has shifted away from the CIO and over to leaders from LoBs. Bottom line, this deal is a further indicator of why CIOs and their enterprise IT organizations are playing much more catch up than used to be the case in the past. It also can be interpreted as an indicator of a bigger enterprise need for Enterprise Device Management (EDM) and Mobile Device Management (MDM) solutions.
In this writer’s opinion the IBM Twitter partnership is a milestone in the evolution of the value of online user data. The daily production of enormous volumes of unstructured data from Tweets becomes a commodity, which Twitter can profit from in an entirely different manner than other social media sites have been able to achieve in the past. One can argue Facebook is doing much the same thing. But there is no IBM in the middle of how Facebook interacts with its customers. The data collection, warehousing, analytics, and, finally, predictive analytics capabilities a player like IBM brings to the process substantially elevates the potential represented by the Twitter fire hose for the CMOs who will ultimately consume it.
There is certainly room for firms competing with IBM to attempt to apply the same structure (with, presumably, Twitter competitors) for consumers with, perhaps, similar objectives in mind. The important point for anyone following the businesses owning the data (meaning Twitter and its competitors) is the likely need to factor in a higher valuation, should this IBM Twitter partnership pay off.
Ira Michael Blonder
© IMB Enterprises, Inc. & Ira Michael Blonder, 2014 All Rights Reserved