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Challenges of Data Analytics in Mexico

Carlos Hernández - Mexico BigData
Director General

STORY INLINE POST

Jan Hogewoning By Jan Hogewoning | Journalist and Industry Analyst - Fri, 06/19/2020 - 12:05

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Q: What capabilities make your company unique?

A: In our 35 years of existence we have been involved in high-profile projects in both the public and private sectors. One example is the negotiation of the original NAFTA agreement, when we supported the Mexican Agriculture Ministry with data analysis capabilities and technical support. Having the right information about the economic context is vital for policymakers to make the right decisions. I have observed the difficulties in the public sector to gather data and ensure consistency. The public sector practically reinvents itself every six years, which makes things harder. Our company has built databases keeping consistency over time. We are constantly evaluating sources and applying frameworks to ensure data quality and the above-mentioned consistency. Our databases provide a perspective on Mexico’s socioeconomic development over the years. This means that if we have, for example, to a client that is interested in expanding into a particular activity and area of the country, we can provide an updated portrait of the sector in that area, the way it has evolved over time and its prospective future.

Q: How does the government change how data is collected?

A: The methodology used to create official data is fundamental. When there is no consistency in variables, you are measuring different things. The impact on how variables are picked and defined is essential. For example, in the recent past there was an initiative to change the way poverty is measured, creating problems for data comparison over time. There is a need for extensive technical knowledge of past surveys to understand what particular variables meant in the past. INEGI has played an essential role in creating and publishing public data and its work, despite issues with changing administrations, has delivered a lot of valuable information. One crucial element has been geo localization, meaning connecting data points to locations. Mexico is a diverse country with many contrasts, so socioeconomic and demographic indicators vary strongly, even in areas like Mexico City. The ability to collect data also varies per region. In Baja California, there are only five municipalities. In Oaxaca, there are more than 500.

Q: What is the role of private entities in collecting public data?

A: They should be more active. The main party responsible for constructing a national information system is the public sector. However, the private sector must be more active in creating data, not to substitute the government, but to complement it. The government struggles with a lack of resources. If private parties use consensus rules and methods, they can help to produce essential information needed to tackle the issues Mexico is facing. For instance, the financial sector registers the movement of money in this country. While respecting the privacy of citizens, this information could be aggregated to provide far more insight into the types of activities, economic status of individuals, the size of companies, the regions and the industries that are making the country grow. So far, the private sector has been relatively passive in taking advantage of this data.

Many large companies do not have adequate data analytics capabilities in place. One thing is to have the systems needed for running and controlling the operation and another is to have the technical skills to carry out data analysis with modern tools and techniques that provide a deeper insight into the business’ real drivers. HR departments need to address the problem and allocate more resources to overcome this situation. What we need is a consensus that acknowledges data is indispensable for the country and for tackling national problems. The possibilities that could arise by working together are endless. Considering the COVID-19 health crisis for instance, without accurate data, how can we know what is really happening and act accordingly? It is not rocket science. A concerted effort with the right allocation of resources is required.

Q: What are your priorities for 2020?

A: We are working on a number of projects. One is focused on connecting universities across the country with the broadband capabilities they need. We are also starting the second phase of a project with telecom companies to expand their business in Mexico. Using our data analysis capabilities, we recently designed an analytic platform to assess the risk of COVID-19 spreading in Mexico’s 2,645 municipalities. This tool will be essential during the critical phase of the pandemic and for the gradual return to normality once the worst is over.

 

MEXICO BIGDATA is a consultancy firm that uses data analytics to provide useful information for better decision-making. The company has clients in both the public and private sectors and has been working in Mexico for 35 years

Photo by:   Learntek

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