14 DAY TRIAL // The old adage knowledge is power is as true as ever especially as knowledge becomes more abundant online. While it may seem that more knowledge available to more people means a more equal distribution of "power," the key is understanding all that knowledge, or better said information, and knowing how to use it to your advantage.
This abundance of information has led to the creation of the term "big data," along with the tools and the people to understand it.
There are plenty of companies online that have access to a lot of info, Google is a prime example, and it's using that info to generate billions of dollars in profit each quarter.
But no company now has more information, more data than Facebook. Facebook knows about everything its 900+ million users do on the site and, even more importantly, what they do elsewhere on the web. Not only that, other companies are providing it with valuable inside information for free, by using its platform.
And Facebook is starting to make use of that info not just to make its product better or to make money, but as a competitive advantage, by being able to understand and predict the market better than any of its rivals.
The New York Times has a very interesting take on how Facebook is using data it gets via its platform to see who and what is popular or, better yet, about to become popular.
That knowledge was key in its acquisition of Instagram, Facebook was in the best position to know how fast Instagram was growing than anyone, save perhaps Twitter that is a more popular destination for Instagram photos. But Facebook also had data on how everyone else was doing, which Twitter didn't.
In any case, it helped it reach a decision fast and scoop up Instagram before Twitter, Google or anyone else interested. That's just half the story though, Facebook can't only predict what's going to be popular, but can also make popular whatever it wants.
The site has such a huge reach that it can promote any app of its choosing and ensure that it grows at a pace impossible without outside intervention. With the introduction of the App Center, Facebook's power is even greater.