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who said data is the new oil ?

**Who Said “Data is the New Oil”?**

The phrase “data is the new oil” has become a popular analogy in discussions about the value and significance of data in the modern economy. But who first said it, and where did the idea come from? In this blog post, we’ll explore the origin of this phrase and delve into its meaning.

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### **The Origin of the Phrase**

The phrase “data is the new oil” was first coined by **Clive Humby**, a British mathematician and data scientist. He introduced the concept in **2006**, during a presentation about the growing importance of data in business and society. At the time, Humby was working with Tesco, the UK-based supermarket chain, where he played a key role in developing the Tesco Clubcard, a loyalty program that gathered vast amounts of customer data.

Humby’s analogy quickly gained traction, especially as the digital age began to transform industries. By comparing data to oil, he highlighted the raw potential of data as a valuable resource—one that, like oil, must be processed and refined to unlock its true value.

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### **The Comparison: Data vs. Oil**

The analogy between data and oil is compelling for several reasons:

1. **Raw Value**:
Just as oil is a raw material that must be refined before it can be used, data in its raw form is not immediately useful. It requires processing, analysis, and context to become actionable insights.

2. **Abundance and Competition**:
In the 21st century, data is abundant—generated by everything from social media to sensors in the Internet of Things. However, not all data is created equal, and the competition to collect, analyze, and monetize high-quality data is intense, much like the competition for oil reserves in the 20th century.

3. **Economic Power**:
Just as oil fueled the industrial revolution, data is driving the digital revolution. Businesses that effectively harness and analyze data gain a competitive edge, much like the oil-rich nations of the past century.

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### **The Expansion of the Analogy**

Over time, the analogy has been expanded by other thought leaders. For example:

– **Michael Palmer**, a marketing executive, elaborated on Humby’s idea by stating, “Like oil, data is valuable, but if unrefined, it cannot really be used.” This emphasizes the importance of data processing and analytics in deriving value from raw data.

– **Peter Sondergaard**, a Senior Vice President at Gartner, took the analogy further by saying, “Information is the oil of the 21st century, and analytics is the combustion engine.” This highlights the role of analytics in transforming data into actionable insights.

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### **The Significance of the Phrase Today**

The phrase “data is the new oil” has become a shorthand for understanding the critical role of data in the modern economy. It underscores the importance of data as a strategic asset for businesses, governments, and individuals. However, it also raises important questions about:

– **Privacy and Security**:
Just as oil can be a source of conflict and environmental harm, data can be misused, leading to privacy breaches, surveillance, and even geopolitical tensions.

– **Accessibility and Control**:
The concentration of data in the hands of a few tech giants has sparked debates about monopolies, antitrust regulations, and the need for data democracy.

– **Ethical Considerations**:
The collection and use of data raise ethical concerns, particularly in areas like artificial intelligence, facial recognition, and targeted advertising.

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### **Conclusion**

Clive Humby’s phrase “data is the new oil” remains a powerful metaphor for understanding the transformative role of data in the 21st century. While the analogy highlights the immense value of data, it also serves as a reminder of the challenges and responsibilities that come with its use. As we continue to navigate the digital age, the question is not just how to extract value from data, but also how to ensure that this resource benefits society as a whole.

In an era where data drives innovation, shapes economies, and influences politics, the words of Clive Humby continue to resonate, reminding us that data is not just a resource—it is a game-changer.