Individually we use data, all day, every day. Looking at a sliver of a typical morning routine, we look at the weather forecast and our schedule, then make a quick mental plan, and dress appropriately. First, we all follow systems to capture facts and stats, then we interpret the data, and finally we act. With this personal data use, we improve our lives enormously and in the same way, data can lead to positive change in our businesses and organizations.
Big Data is experiencing double-digit growth and will for the next decade. With this growth comes opportunity. According to a 2017 NewVantage Venture Partners survey the big data drives value in multiple areas, the top four are: decreasing expenses, creating new avenues for innovation, launching of new products or services, and the monetization of big data that creates an increase or new revenue.
Let us focus on the monetization of big data that increases revenue or creates a new revenue stream. The monetization of data is the act of generating a measurable economic benefit from the gathered stats and facts. This top line economic benefit comes by a direct or indirect approach or a combination of the two. A direct approach is the addition of a new revenue source in the form of a new client that sees the value in the neatly packaged data and pays for it. On the flip side an indirect approach is an up-sale of sorts on existing clients. These current clients see the value in the product or service improvements (brought about because to the data use) and pay a premium compared to prior expenditures.
In a recent article with the byline “Why approaching “dead data” as a living opportunity is an investment win” Lawrence Cowan, from The Cicero Group, lays out a solid strategy with three simple steps to monetize current data: identify, determine, and capture.
Identifying value. 98% of businesses/organization do not have a fully-centralized data management strategy and without management it is nearly impossible to see, let alone capitalize, your data’s value. Cowan urges all to “begin by documenting the existing data landscape—noting what data exists, where it is housed within the organization, which systems and tools are associated with it, and what quality it has. If you find that your data is decentralized with no governance in place, then your data monetization efforts are the perfect time to design and implement such a system.” This allows you find which of your dataset has value.
Determining value. Categorize the selected datasets by asking two questions,
- What problem is solved?
- What is the value of the problem solved?
Here the economic benefits generated from the direct and indirect approaches need to be included to calculate the values. Whether you are first timer determining value or have been around the block the calculations get complex and a set of independent eyes, like the Cicero Group’s, can help avoid the ever present nature of self-deception.
Capturing value. A list of data monetizing possibilities now exists and needs to be utilized. Each monetizing possibility gets an action plan. This plan needs to answer who is targeted, what marketing is needed, how and who should implement the plan.
Now is the time to start to make more of your gathered data, it is time to monetize it. And if you have no system in place like Cowan said this is a “perfect time to design and implement such a system.”
Cowan, Lawrence “Monetizing “Dead Data” is the 2019 Business Opportunity You’ve Been Looking For.” The Cicero Group. 2019,