Data monetization has fast become a key area of interest across many industries as companies everywhere are seeing the value of their data not just operationally but also as a data ‘product’ that they can commercialize and take to market. DMI was recently interviewed for a Forrester Research “It’s Time to take your Data to Market” (September 2014), specifically relating to this topic. Our organization has always strived to be a trusted technology solutions provider and thought leader in the big data space, and we are proud to be one of the vendors included in this new publication.
This report hit the nail on the head and truly provides as a comprehensive guide to data commercialization and how CIO’s can start to identify key steps when considering and putting into play a successful data commercialization strategy.
The three key takeaways as mentioned by Forrester are:
- Business And Tech Leaders Increasingly Recognize The Value Of External Data
- Companies Will Increasingly Look To Commercialize Their Internal Data Assets, and
- Consulting Partners Provide Guidance On Data Commercialization
Adding our thoughts on to these points, we believe while internal data analytics are an extremely valuable source of information, many companies are only beginning to identify the importance of their data’s value outside the company. Forrester states, “Business and technology leaders increasingly recognize the value of combining their own customer and transactional data with data from external data sources, and rightly so — top performers are more likely to see external data as strategic.”
Customer and machine data will no longer only be valuable to the organization’s marketing, sales and financial departments as a way to monetize their own data. The value creation is not only through additional cost savings, better efficiency or revenue generation from cross-sell or upsell, but will also be relevant to businesses outside their own as a data product or service. Any organization’s customer behavior data can enhance another organization’s information about the same list of customers – so as to create a 360-degree view of the customer.
We were surprised to hear that Forrester found that only about half of the company’s surveyed are using data analytics internally and even more surprised to hear that one third are already sharing their data with customers or partners but only 19% are actually selling or planning to sell it.
Of course, there are many things to consider before taking a data product to market, including security and privacy, communication, market demand, technology readiness, data readiness, adding additional complimenting data sets from outside your organization, etc. If the potential is there but the task seems overwhelming, Forrester recommends that you look to qualified partners to help build out the commercialization strategy that’s right for your business.
In closing, according to Forrester’s forecast, “We expect the emerging data commercialization opportunity to have a profound impact, in particular on the CIO’s agenda. …The ability to monetize data raises the prospect of running tech management as a profit center. Forrester expects to see the emergence of innovative business models as organizations mine their data assets — not to mention their data management expertise — for new revenue streams.”
Download the full report on Forrester’s website or Click here to download our white paper: Turn you Data into Dollars – Data Monetization. It’s a practical guide, with some great examples of how businesses like yours are tapping the hidden revenue sources in the data they collect every day.
– Thiag Loganathan, President, Big Data Insights Division