Modern organisations generate and collect vast amounts of data. They can exploit this data to provide new revenue generating opportunities and innovative new services to customers and other 3rd party organisations. Data can also be used to understand and improve the customer experience they offer enabling new digital channels for customers, and seamless experiences across multiple touch points and engagements.
The Data Monetisation process begins with understanding all the data sources you have and gathering the data into a single virtual store (known as a “data lake”), and in a common format where useful analysis of the data can take place. You need to understand the pain points or opportunities that your data could help address in your own business, customer base or supply chain as well as other company’s in the same industry sector. There may also be potential monetisation opportunities in adjacent or totally different industry sectors. You then need to identify specific use cases that can be supported by the data sets you have available that address those pain point and opportunities and translate those into commercially sound propositions.
Historically, data monetisation has been based on a traditional reseller model – For example. a car company takes data from a mapping company, integrates it with their product (i.e a car with built in Sat-Nav) and sells it to their customers as a value-added feature. Modern models of data monetisation are more sophisticated and follow an “ecosystem” approach. For example, Otonomo gathers data from multiple car manufacturers and fleet management companies and offers an automotive data marketplace to its customers. Revenues flow back from the end customers through Otonomo to the car and fleet companies as their data is utilised.
Data monetisation requires you to abandon “silo” thinking (where data has only one purpose for one part of your business) and view all of your combined data sets in a new way – i.e. as a set of highly valuable assets that can be offered to others via an online data aggregation platform or ecosystem. For this to happen it needs to be liberated from your legacy systems and made available in an easy to access and consumable format that allows aggregation, analytics, and visualisation to take place.
From there the potential exploitation opportunities and new use cases are extensive. Examples might include improved fleet management, workforce optimisation, supply chain and logistics efficiency, smart city applications, precisely targeted marketing, brand loyalty schemes, improved credit scoring, personalised insurance offers, assisted living and patient choice. Your data may be of incredible value to other organisations but it requires you to unlock it and make it available on platforms and ecosystems in order to generate new revenues.
How do you plan to position yourself with the converging forces and mega trends that are evolving, and available to you?