Data Driver: Economics, a holistic view

From a “data driver” perdriver_economics_1spective, broadly three categories were derived in previous post. This classification was done to ease the understanding on complicated nature of this subject area. Three different entities function in ways that are diametrically opposite in nature such as cats and dogs as well as in harmony like music instruments in orchestra.  The previous statement will sound like a oxymoron, but as we proceed it will become clear on how human behavior affects everything and how each entity can switch poles under different events as in a magnet.

Another angle to classifying the drivers into entities is to view the degree of influence and dependency amongst them. Looked closely, it is the people who are decision makers and they are wearing different hats at different instances based on which circle they are in. This creates a web of inter-relationships and probably a webbed graph something similar to spider web will give a better representation.

Economic data has the special place in history of being documented since time immemorial. It goes back till the oldest form of money that can be traced back by anthropologists today. The basic denominator for this data is an economic event and today there are the gazillion events happening 24 X 7 X 365 across the globe. Each event is a trigger to a subsequent event similar to domino effect and progresses until the cycle is complete.

In the representation below, a high level overview of how each entity influences different aspects of day to day life. Society is influenced by needs, wants and desires, whereas Industry and Country represent areas of control or influence. Motives and decisions vary greatly between individual thinking and events triggered by any entity will have impact on all the entities either directly or indirectly.

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Little story on “Chain of events”: Ram wants to celebrate his engagement with his fiancee Sita, friends and few close members of his family (This is the event trigger).  He plans to have a dinner party in a popular restaurant can accomodate a wide variety of taste buds (Location finalized, probably did a review on zomato.com, an online service provider). Ram calls and books a table for 25 in the restaurant and informs that the group will have couple of elders, and couple of babies. He also mentions that few people in the group may have special dietary preferences like low carb, low gluten, diabetes etc.

Restaurant manager now is aware of the demand for forthcoming weekend (Responsive trigger for the event). The manager proceeds to procure items for the restaurant as per the data available and his prior experience for Vegetables, Meat, Grains and all other items required with respective suppliers (Another responsive trigger affecting many more). Suppliers then deliver goods at specified time and location and if they are not adequately stocked, they in turn procure them from a wholesale supplier. (Tertiary trigger, but you get the picture here and these events go back all the way to the source of raw material)

On the day of celebration, Ram & Sita reach the destination in their personal transport, whereas others use a mix of cabs, autos (Transportation) and few drive down with help of GPS devices (Subscription based service). Everyone has a gala time enjoying the moment and the party was a grand success. Sita is impressed by the service and she tells on the way back home to Ram, “Hey, this place is very good. I will bring my colleagues from office next week here for treating them on our engagement!”. Thus the cycle goes on…..

Where is the data here? After reading a long post, does it occur as if the term “data” was mentioned only sparingly? Actually, data was recorded everywhere and at all stages by different people starting from reservation slip, purchase orders, kitchen order, delivery notes, bills, credit cards, payments etc. Ram (Society) acted as consumer and Restaurant (Industry) was the service provider and Owner (Country) was happy that economy was going good.

If you go back to reading the mini story and connect with a similar incident in your life, it will become evident.