Recently, Antock was introduced as a startup using big data in an article written by Kim Kyung-hwan, a professor at Sungkyunkwan University's Graduate School of Global Entrepreneurship.
Article source: Asia Economy (https://(www.asiae.co.kr/article/2020072907385730084)
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Big data, which is the core of the fourth industrial revolution, changes society and the economy very rapidly. Big data refers to structured and unstructured data that is larger than existing data and is difficult to collect, store, and analyze with previous methods or tools. 2 million searches are generated in 1 minute on Google, 72 hours of video data on YouTube, and 270,000 tweets on Twitter. The total amount of data generated exponentially around the world is expected to reach 163 zettabytes (ZB) during the year 2025, which is 10 times the current level. Over the past 20 years, 8 billion hard disk drives (HDDs) have been shipped, which is only 4ZB in capacity. It is predicted that there will be far more data generation entities in the machine-to-machine (M to M) and Internet of Things (IoT) fields by companies than general consumers.
This kind of big data is commonly used in corporate marketing, etc., but it is likely to gain more popularity as a business model for startups in the future. The American company Palantir (Palantir) is representative. Peter Thiel (Peter Thiel), one of the founders, devised a system to respond to credit card fraud based on his experience with Paypal (Paypal) and established Palantier in 2003 with an investment of 2 million dollars from the US Central Intelligence Agency (CIA) and the Department of Defense. Palantier provides a platform for big data analysis in various fields to prevent financial risks, and also cooperates with the CIA and FBI to arrest criminals based on this.
Recently, there has been an increase in the number of startups using big data in Korea as well. A startup called Antock (Antock) technically collects financial and financial data that is difficult for the public to access and understand, analyzes it in an automated form, and provides it to consumers. It was determined that there was little securities information that was friendly to individual investors in Korea, and it was founded as a business model to provide information tailored to individual investors' level.
Here are a few startup business models that use big data. First, it is a personalized offering (offering) service. It is a service that literally provides customized information to individuals by analyzing customer behavior, identifying and comparing the customer's preferred products, and providing optimal consumption information. It can be applied to distribution and online commerce businesses. Second, it is a data analysis-based application (AppLocation). It is a business model that makes new proposals by interpreting big data patterns and behaviors. It can be used in healthcare, insurance, manufacturing, and security. Third, it is a cloud service for small and medium-sized enterprises. In Korea, the share of small and medium-sized enterprises is as large as 99% of all businesses. However, small and medium-sized enterprises lack the ability to store and analyze large amounts of data, and there are many budget restrictions. Providing them with low budget and high efficiency cloud services can also be an appropriate business model.
For the establishment and success of such big data-based startups, more policy support from the government is needed. First, for the success of a data-based startup, a qualified workforce with data management and analysis skills must be cultivated. Next, the system should be improved to make it easier for young people to start a business by collaborating with universities in this field, and open up data from public institutions so that anyone can start a business using it. The amendments to the Personal Information Protection Act, the Information and Communications Network Act, and the Credit Information Act that passed through the National Assembly in January could be a huge opportunity for startups. It can be evaluated by the fact that the Personal Information Protection Act has expanded the range of information that individuals and companies in line with the 4th Industrial Revolution era can use by eliminating redundant regulations caused by the division of competent departments.
IDC (International Data Corporation) predicts that the big data market will grow at an average annual rate of 11.1% by 2022. Approximately 94 trillion won was invested in 10,000 big data startups around the world. Korea is the 5th largest data producer in the world, but the usage of big data is only 31st. Among the top 100 data companies in the world, there are no Korean companies among the 10 global unicorn companies in the big data industry. The market is growing indefinitely, and opportunities for creating business models are expanding. I hope that the number of big data startups will increase in Korea, and that many successful startups will emerge.
Asian Economics/ Kim Kyung-hwan, Professor, Graduate School of Global Entrepreneurship, Sungkyunkwan University
