In 2013, the world took another step towards the digital age. This is a new era of change, and the impact on the social economy will be two to three times greater than the industrial revolution. About 90% of the world's total data was created in the past two years. By 2020, the amount of stored data will be 50 times larger than in 2010. Many authoritative sources believe that this data explosion is comparable to new oil, and even a brand new asset class.
The abundance of data is stimulated by the almost ubiquitous Internet. By 2020, smart phones will connect the other 2 billion to 3 billion people, and billions of mechanical sensors monitor everything from tractors to aircraft engines, and further breakthroughs in computing power will lead to a massive increase in data storage and analysis. .
In such an environment, the smoothness of data management and analysis will be the key to successful organization. In 2011, Erick Brynjolfsson of the Massachusetts Institute of Technology (MIT) and colleagues published a study that found that companies using data-driven decision making were 5% more productive than companies that did not use data decisions. 6%.
The devastating effects of new hodgepods from new data and analysis spread across the public and private sectors. Video streaming website Netflix has launched a series of Internet-designed dramas, House of Cards, using its vast database of user search, viewing, pauses and comments. The series featured the popular director David Fincher and the popular actor Keven Spacey, and the title borrowed a British pop show â€“ they are among the best in the Netflix popularity rating. .
In other industries, data-driven decision making is rapidly becoming a standard in product development, marketing, and customer interaction, complementing (and sometimes even replacing) intuition and experience. Data-driven decision making is also used to improve the supply chain, improve work schedules, and optimize production processes.
A greater degree of damage can occur in cross-industry areas, and the privilege of acquiring proprietary data is re-determining the competitive front. Companies with deep data sets are increasingly capable of harnessing markets outside the traditional home industry â€“ leaders are already taking the opportunity. In China's e-commerce company Alibaba, small and medium-sized network operators can also apply for credit. Alibaba used the transaction data to issue loans and provided working capital (more than $16 billion) to 320,000 companies. So far, its efficiency far exceeds that of ordinary banks.
The government is also aware that data analysis can change its global position. For example, Singapore has developed a ten-year blueprint with the core of developing a strong information and communications industry, including data analysis. Recently, the authorities have implemented a public data plan that allows people to easily access large amounts of government data.
However, while many organizations are aware of the importance of data analysis, the enthusiasm for embracing this trend is quite different. Early adopters such as Amazon and Tesco quickly established the necessary talent pool and experience, and are now working to analyze the impact of maximizing the organization (ie exploring destructive opportunities). But more organizations are still in the small-scale trials and hire the first batch of data scientists.
The good news is that many companies will be able to accelerate the pace of change. Talent is an exciting field. Mining the potential of data analysis requires deep and advanced technology reserves. There is no doubt that employees who are longer than data management and advanced analysis are in short supply. Emerging â€œtranslatorsâ€ (transparent IT and data, analysis) The same is true of the group of people who have a relationship with business decisions.
â€œTranslatorsâ€ are critical to the complex transformation process that spans many business functions. Universities are rapidly adapting to meet the needs of expansion, and many universities offer interdisciplinary projects that combine analytics and business.
Rapid advances in technology have also made it easier to achieve the impact of analytics. For many companies, the biggest challenge is to translate insights from statistical models into actual changes in day-to-day business activities. Individuals in the first line lack the intuitive tools to connect insights and actions, but advances in data visualization, accelerated application development cycles, and steady consumerization of technology are changing the situation, giving managers a personalized, easy-to-understand solution. .
For example, Climate Corpora (TI), which was recently acquired by Monsanto, has more than 30 years of weather data, 60 years of crop yield data, and terabytes of soil type information. The company uses historical information reserves and advanced algorithms to provide farmers with fee-based advice through an intuitive portal.
Organizations are looking for opportunities to innovate, boost revenue, and increase productivity, and the leadership team must make adjustments. Defining new data-driven strategies, managing new reserves of massive amounts of information, identifying new models, managing across functions, and stimulating organizations around new tasks require new management capabilities.
Businesses have been innovating in an organized way. In 1961, California electronic component manufacturer Ampex officially used the term "CFO" for the first time. Today, this position is everywhere.
Leading the way in the digital age may require new roles such as chief digital officer, chief analyst, or chief data officer, although there are relatively few companies that have adopted this approach. In the future, the overall success of an organization requires a leader to be responsible for these functions, and he must be a trusted senior management team member.
Few leaders are able to build a management foundation in a new field while building a team that combines a variety of previously unknown types of capabilities. Strategic choices face the same fresh areas, just as mass media has opened up a new era of marketing, or globalization requires radical changes in organizational footprint.
In 2014 and beyond, CEOs and boards need to decide on new priorities, invest wisely, and be ready to support the experiment. In an era when great destruction is inevitable, those who are prepared to act quickly and decisively while being wary of risks will gain enormous potential benefits.
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