One of the most powerful things I have learned over the past year is the immense amount of data that comes out of using a computer system, specifically some form an online web based experience. At Union Square Ventures, we refer to this as data exhaust, or sometimes called digital exhaust, because it is the excess valuable information that is left in the wake of using a service. The best services capture this information in an elegant and effortless way, without any barriers or friction.
This remains one of the core investment thesis ideas in my mind when I look at a company that lives on the web. In an inverse relationship to environmental exhaust where usually the more left behind the worse the system, the web works in just the opposite way. The more data left behind, that can be harvested, the better the underlying network. This process of collection can be done via a lazy login, a deliberate subscription, or a federated login system – in each case allowing the underlying infrastructure you are traveling across (or consuming) the ability to retain this data.
The data retained from data exhaust can be use for many different things. The first and most obvious is to make your experience better. Your profile and activities give off information that can be used and processed with a system, making your experience better the next time you arrive. This presents a sparse data problem for new users and new systems, but once the data asset is in place you have more of an incentive to return.
This dynamic behind a new web service shows the importance of allowing users to traverse across an already present data asset.
Many services do this well today, while others built up this asset of data over time. Being a new user on a service is tough, but the opportunity to grab the data exhaust of each of those new users to turn around and use of for the betterment of the system and other users is great.
Federated login systems such as Facebook Connect and Google Connect enable you to bring your data with you, something that I think will become common place over time. As these paradigms solidify in peoples minds, and the value of such activity becomes apparent I think you will see demand increase to bring a customized set of decisions, opinions, and “personality” with you whenever you sign up for a new web service.
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November 5th, 2009 at 10:47 am
Love the term data exhaust.
November 5th, 2009 at 10:48 am
Collect it all.
November 5th, 2009 at 10:50 am
Eric-
Are there any specific examples of data types that good systems capture that the less mature systems may not?
Cheers,
Ryan
November 5th, 2009 at 10:54 am
The first time you use Facebook, your profile is empty, which is why they
have created an almost game like dynamic to “get your profile complete”.
Inferences made from your completed profile help advertisers reach you,
relevant news feed items come through, and honestly tweak the system so that
you don't see what you don't want. All that happens through categories you
opt into and data you share not a series of questions like “what type of
news do you want to see – choose from these 85 choices” which is the old
way.
I think Amazon is another that contours results from the moment you click an
item, search for something, or make a purchase. Your customized Amazon
looks exponentially different than mine – all due to data exhaust and no
difficult questions.
A brand new system has a major data density problem that can be solved by
bringing over credentials from another system, or providing a value
proposition that is so strong, you start contributing back to the system and
solve the data problem.
November 5th, 2009 at 11:00 am
FB & Amazon are both great examples…
The entire time I read that response I couldn't help but to think, somebody
smart is going to snatch AdaptiveBlue. They're becoming the kings of
optimizing data exhaust.
Thanks Eric.
November 5th, 2009 at 11:20 pm
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November 6th, 2009 at 4:37 am
Great post and love the term “digital exhaust”…recently posted something related about 'organizing the overload' on http://blog.silentale.com looking at how aggregation online has developed over the years, starting with search, ecommerce and content, and moving now towards consolidation of lifestreams and communications. Would be interested in your take on services that attempt to help consumers aggregate, archive and organize their digital exhaust from a number of different services.
November 6th, 2009 at 7:52 am
I will check it out.
November 6th, 2009 at 10:37 am
Great post and love the term “digital exhaust”…recently posted something related about 'organizing the overload' on http://blog.silentale.com looking at how aggregation online has developed over the years, starting with search, ecommerce and content, and moving now towards consolidation of lifestreams and communications. Would be interested in your take on services that attempt to help consumers aggregate, archive and organize their digital exhaust from a number of different services.
November 6th, 2009 at 1:52 pm
I will check it out.
June 12th, 2010 at 7:26 am
There really is a lot of information on the net and it’s really hard to figure out what is needed, and what isn’t. I have issues with finding things, and maybe it’s because I’m new to the net. I’m sure it will get easier in time.