Data business here mean doing business which use the value of data. I have been looking for any terms to describe this but only found of data driven management, data driven marketing, etc. which has different meaning.
All we learnt in Myanmar school and universities were only two type of business which are product business and service business. Product business, as you knew, is the business which manufacture or sell the product. The product may arrange from raw product to consumer products. All of those are in the product business category. Service business, as you knew, is the business which sell the service. The service may arrange from funeral service to marketing service. Service business does not include the manufacturing factory because there is no tangible product coming out from this business.
Risk of product and service business in Myanmar
Big fish eats small eat. Companies with enormous amount of investment are excelling the small companies in Myanmar. Small manufacture cannot compete with big manufacture. In fact, those big manufacture are also having risk of potential competition with foreign companies which has more experience and better technology. It also applies the same in the service industry. Foreign Service companies are taking place even in the laundry service in Myanmar. There are already some Japanese companies which does household migrating service. Competition is really though now in both service and product business in Myanmar.
Difficulties of product and service business in Myanmar
It is all about money. How large a business can be expand depends on how big amount of investment can be used. To make a manufacturing, even affordable machines are need to be ordered from China. The cost depends of types of machine and their capacity. The price is not only at machine but also at human resources to maintain the machine and at raw materials in minimum. To do a manufacturing in Myanmar is really a long journey with money steps. In service industry, people do not rely on the machine but does rely on the people. If a service company want to serve three companies, the service company has to have enough human resources to service three companies. If the company want to serve hundreds of clients, the company will definitely have to hire over hundreds of people. Service companies’ value center at human. Human drive the service company. No machine can help at dealing with customers and clients, deciding the service decision, etc. To have a giant size of service companies mean to have a giant size of employee. It cost a lot, of course, to have quality workers. High rate of employee turn-over is been a trend in Myanmar work market. How much value a service company have cannot compare with how much value a product company have. Service Company is built by human. Value exist in human. If those human left the company, the company valuation will be almost zero. These are just some of the challenges and difficulties of product and service businesses in Myanmar.
Data Business Company
What would we name a Facebook whether a product company or service company? I name it a data business company which has two properties of product and service. The product is the platform and data of users. The service is advertising opportunities for advertises. It is users’ right whether to put on their data on Facebook or not and it is Facebook’s right to show ads on those users’ news feed. There are terms and condition to agree first before using Facebook. There are not only Facebook but also many other similar companies which collect data and serve to users and advertisers such as Yelp, Viber, Instagram (a sub-company of Facebook), Google, etc.
Why Myanmar need data companies
Core value of a data company is the data. The data is the most valued treasure of the company. Myanmar is lack of valuable data in the market. Accuracy of data, amount of data and coverage of data should be right and if not, it will impact badly to the market. The business which is not driven by correct data is like travelling without knowing exact kilometers. Data is not only needed for the company but also for consumers. In Myanmar, people rely on people recommendation outside to decide to buy something. There is no online platform to verify and find more information about the product and service they are looking for. Tripadvisor is being used in tourism industry here in Myanmar but usage is really low among local internet users. Restaurant directory and information apps are rising in Myanmar but they are not ready yet to serve fully to consumers. Online yellow pages are existing now in Myanmar but no one bothers yet in Myanmar. Friend recommendation, family recommendation and experts recommendations are all people wish in Myanmar before they spend the money. Blind buying without research is most common and it makes people regret later. Then social media became a platform to share their feeling of unsatisfying about products and services in Myanmar. Facebook is not reachable to targeted people. Local news and media are also rising but total number of the media and range of media categories are still lacking. It is good to see that many taxi apps are now competing in the Myanmar market. Uber, Grab Taxi and Go Taxi are international companies. Local apps such as Oway and Hello cabs are also on their track to achieve consumers in Yangon.
An advantage of data companies
Data companies’ values are data, source code, idea and, of course, people. Data is intangible. Thousand lists of restaurants are just few kilobyte of memory but it may value more than thousands of dollars. Data are never old as long as the companies update the data. The advantage of a data company is even its own property. Its property is the data company is both a product and service company. It is a product and it is also a service. Data companies such as Facebook, COC game, Angry Birds are being started with few people then it grew to thousand employee sized companies. To start a data company is low cost wherever you are. You can start with your own computer. To collect the data is also not a hard thing. Airbnb starters used their own camera to take the picture of houses for there are listings. Now Airbnb is already a billions valued company. You can start your own idea or you can adapt global successful idea which is already proven. If the idea is brilliant and the business grow well, there are even possibilities to expand to international markets. India is already another silicon valley with full of data companies. IT industry makes them grow faster in the Asian market. Myanmar is also having the opportunities to grow further and quicker if data companies are risen. Of course, there are many obstacles and difficulties to start any kind of data companies in Myanmar. However there are always possible ways to stand up in the market. There are been many successful stories being featured in the global media about local data companies from Myanmar such as flyma.com, Nex, etc.
These are the reason why data companies should be founded in Myanmar.