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Key Takeaways

  • Digitization refers to converting physical data into digital records, while datafication involves quantifying previously qualitative information.
  • Datafication is important because it allows companies to optimize services based on user behavior, creating a win-win for both parties.
  • The increase in online and mobile device usage has led to more data collection, but privacy measures such as blockchain technology are being developed to address concerns.

The word “datification” sounds like a dull piece of jargon. It also sounds like a word that was a big deal some twenty years ago and has since fallen off the radar for many people. Actually, datafication is an incredibly important movement that impacts all of us - and it’s not the same as “digitization.”

What Is Digitization?

Hand-written notes of time spent on a project

“Digitization” is a word you’ve probably heard before, even if you haven’t heard it in a long time. Digitization refers to taking data that is recorded physically, like in a book, on a videotape, or a CD, and converting it to a digital record. For example, in the above image, I could digitize my time-tracking data by adding it to an Excel spreadsheet, a digital format.

Digital records are easier to store, back up, share, edit, and analyze. It was a major move when computers were new, and a lot of data originated and was stored in “hard copy.”

There are still times when digitizing is important, like decluttering your life if you have too many paper notes and records. However, digitization isn’t as important a trend as it used to be, considering a lot of data now starts digital and stays that way.

What Is Datafication?

“Datafication” is the collection of data by quantifying things that were previously studied qualitatively. Datafication differs from digitization, but it is possible precisely because so much data now originates and exists in a digital format.

The most important aspect of datafication for the average person is the quantification of behavior. How and why people did things like shop or browse for videos used to be studied primarily through things like surveys. Now, more and more actions and attitudes are being broken down into metrics that service providers can collect directly.

Why Is Datafication Important?

Datafication is important because it represents a tradeoff between citizens of the internet and the companies that provide us goods and services. The better those companies know us, the more they can optimize the services that they provide.

This is, ideally, a win-win situation. We get the best possible experience navigating the web, and the better our experiences are, the more willing we are to support the companies that provide us with those experiences. Many people aren’t really worried about this exchange because it just works, and companies are good at showing us what we want to see.

However, many people would rather find what they’re looking for on their own than constantly feel like someone is watching them. Fortunately, there are extra steps to safeguard data when using the internet.

The Future of Datafication

One of the reasons datafication is so important, and the reason that it exists at all, is that we spend more of our time online. But that’s not all—the devices we use to access online experiences are becoming more ubiquitous.

Data can be collected from an online experience on a home desktop. However, exponentially more can be collected from a mobile device with access to your camera, location, and more. Many people also spend more time on mobile devices than desktop computers.

And those trends are likely to continue. However, the ways in which our data is stored and managed might prevent the increase in data from necessarily meaning a decrease in privacy.

The Evolution of Personal Technology and Personal Data

Man and woman wearing VR headsets

Head-worn devices like VR headsets require more data for even basic functions. Further, some higher-end devices can collect data like eye movement making VR privacy a huge concern for many.

VR headsets are typically worn for relatively short periods and in relatively small spaces. However, many are now looking forward to augmented reality glasses that could be always-on devices constantly collecting data about wearers and the worlds in which they live. A device like that is still a few years out, but it’s never too early to consider privacy.

Changes in Digital Ownership

Linking a MetaMask Wallet to Decentraland platform

On the other hand, other emerging technologies may change how data is stored and processed by companies and how individuals control it. Blockchain technology, in particular, is working on the problem of balancing privacy with the ability to “carry” certain information from one site to another.

Right now, how we log into sites, manage payments, and verify our identities are all managed by large sites like Google, Microsoft, and Facebook. However, blockchain organizations are laying the foundation for personal “digital identities” that make it easier for individuals to manage their own data as they move around the web.

Right now, the extent to which we exchange data for online efficiency can largely be personalized with cookies—though much remains out of the average individual’s control. How the future of datafication plays out is still an ongoing conversation, so keep an eye out if it’s important to you.