Data is the new currency
All companies, no matter what they do, are essentially data companies. 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. 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.
Success factors for data monetization
Internal Data
Identify data from internal business processes that is already being collected or produced
Combine External Data
Identify external data that may enrich or increase the value of the data
Define Value of Data
Define the value / product / service created by supplying the data to a defined target sector. Consider the volume, quality and attributes that make the data unique
Ensure Compliance
Evaluate regulatory requirements related to data acquisition, use and disclosure. Data regulation is a rapidly emerging landscape
Be Ethical
Be respectful of personal data and use it in a way that is ethical