All companies, no matter what they do, are essentially data companies. And almost all of them have access to troves of information on their supply chains, operations, strategic partners, customers, and competitors. But while most companies are leaving money on the table, only a handful are using this information to its fullest extent. By tapping into the insights that can be derived from this information, though, companies can improve every aspect of their businesses—from customer segmentation and demand and churn prediction to pricing optimization and retention marketing. And because these insights can also be sold externally for even greater margins, they’re increasingly regarded as a competitive edge.
There are two primary strategies for monetizing data. The first is internal, in which companies work to enhance their operations by using data to improve productivity, make better products and services, and serve customers more effectively. The second strategy involves creating new revenue streams by making data available to partners and customers.
Some organizations are able to engage in both. They develop internal revenue streams by leveraging data for operational and customer service purposes, and they also anonymize and aggregate the data for their partners and clients.