Organizations often turn to alternative data for relevant and complete datasets, but this route can lead them to alternative data fatigue. Alternative data providers offer datasets for competitive insights, but they often package and sell the same datasets to multiple hedge funds who then spend much of their time preparing the data for analysis.
These hedge funds end up investing money and time into data that is not unique and widely used throughout their industry, which defeats the purpose of gaining valuable competitive insights.
What is alternative data fatigue?
Alternative data fatigue occurs when the same alternative dataset is sold to many different groups of hedge funds, making the data less valuable since it is information anyone can get and many already have. The reason organizations invest in alternative data is to be able to gain insights from external data relevant to their needs. However, these pre-packaged alternative datasets are not a good solution, since they are not custom-built for the organization’s specific needs.
How does alternative data fatigue happen?
It’s no secret that alternative data providers can sell the same datasets to different organizations. So why do organizations purchase these datasets, knowing they aren’t unique?
It’s simply because they don’t know of a better option. Many organizations see their external data options as: 1) web scraping or 2) purchasing alternative datasets. Both of these options have downfalls.
Web scraping requires an organization to build a custom web scraper unique to their needs, and web scrapers often provide incomplete, inaccurate data since there is room for human error in the coding process.
Picking between web scraping and alternative datasets is picking the better of two less-than-ideal options.
The Solution to Alternative Data Fatigue
Import.io’s CEO wrote an article for Forbes about how organizations can avoid alternative data fatigue, since Import.io has a solution to this problem.
Web Data Integration (WDI) is a third option for organizations looking for external data. WDI provides complete, accurate, and unique datasets from anywhere on the web. Alternative data providers can only access a limited amount of data from their sources. But WDI has access to an infinite amount of data customizable to the organization’s specific needs.
Web scrapers also get their data from the web, but they are reliant on humans programming them in a way that will capture all relevant data. But in reality web scrapers often, if not always, omit data that should be included or include data that shouldn’t be included. Web Data Integration is powered by AI, with built-in quality control, to get the correct data every time without omitting or including wrong data.
WDI not only provides organizations with complete, accurate, and custom alternative datasets, but delivers this information in a consumable format. Web Data Integration identifies, extracts, prepares, and integrates web data via APIs, so that you get data that’s ready for consumption.
To learn more about how Web Data Integration can help your organization get custom alternative datasets, contact one of our data experts today.