The good news is that a number of forces have been converging lately to create the right setting for more companies to monetize their data. For example, the cost of storing data has been gradually decreasing, and the ability to process and analyze huge volumes of data in real-time is increasing. In addition, companies today can use analytics and business intelligence tools to create monetization opportunities by leveraging their enterprise data.
Companies seeking new data monetization revenue opportunities by leveraging their data with customers should take advantage of this opportunity by understanding the value of enterprise data, how best to maximize its potential through the data value chain, and how to get the data to the market in the most efficient manner.
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Assessing the value of enterprise data
Data is the foundation of any data monetization strategy, and determining its value is essential for companies to realize its full potential. Companies that have successfully generated new revenues through data monetization use the following key criteria to assess data value:
The data value chain: The path to finding the market opportunity
Once companies asses the value of their data, they must identify the market opportunity by deciding upon the value proposition most relevant to them that would be an asset to potential customers.
A company’s value proposition, or where they can play in the market -- for example, a “data” or “full-service” provider -- can be determined by defining where in the “data value chain” they reside due to the level of data they could leverage with customers. Here are the five stages of the value chain in ascending order of relevance and value to customers: raw data, processed data, data insights, presentation of data insights and data transactions. Once a company discovers their value proposition, they can then develop a business model they want to follow or determine how to move up the value chain if desired.
Commercializing data strategies
As companies begin to shape new data-driven business ventures, they need to determine how to commercialize a particular data strategy. Balancing perception with reality in the following areas is crucial for success:
The future engine of economic growth
A data monetization business has become more feasible due to Big Data infrastructure and analytic technologies, and the decreasing costs of
executing monetization strategies. Therefore, any company gathering data on the use of its goods and services -- particularly consumer data -- has the opportunity to develop new revenue streams from
its data-driven business. But time must be invested up front to understand the potential value rooted in enterprise data, and where on the value chain the company wants to position the new data-driven
business. Similar to any new business project, there are some risks, but the potential revenue streams from data monetization could be substantial -- they could fuel the next engine of economic
growth, reaching across industries and geographic boundaries.