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Data Monetization in 10 Minutes PDF

Data monetization means leveraging an organization's data to create a new revenue stream by selling the data to customers. There are several important factors to consider, such as having at least 20% market share and being compliant with privacy laws. The steps to monetize data include establishing a data strategy, inventorying data assets, identifying revenue streams, and testing ideas. Organizations can monetize data directly by selling raw data or subscriptions, or indirectly by using data to improve operations and develop new products and markets. The future includes productizing information to create new revenue streams and markets.

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294 views4 pages

Data Monetization in 10 Minutes PDF

Data monetization means leveraging an organization's data to create a new revenue stream by selling the data to customers. There are several important factors to consider, such as having at least 20% market share and being compliant with privacy laws. The steps to monetize data include establishing a data strategy, inventorying data assets, identifying revenue streams, and testing ideas. Organizations can monetize data directly by selling raw data or subscriptions, or indirectly by using data to improve operations and develop new products and markets. The future includes productizing information to create new revenue streams and markets.

Uploaded by

Ruben Mg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Data Monetization in 10 minutes

What does data monetization mean?


Data monetization means leveraging the organization’s data to create a new stream of revenue by
selling it in some way to your clients or prospects.

Those customers could be within your organization general market - B2B customers-, a channel
partner or even an unrelated sector.

Important factors to consider when monetizing data


• Market Share: only organizations with owning more than 20% market transactions can
commercialize deliverable insights that can generate profit.
• First Mover: Organizations at least in the top 50% of the market for data products will take
80% revenues generated by the market generated in the commercialization of data insights
products.
• Usage Rights and Privacy: The organization must have legal rights to process the
information and be GDPR compliant. This means that any kind of data product needs to be
totally depersonalized and obey with the current European Law in data privacy.
• Readiness: The organization needs to be ready to operate the required IT, sales and service
infrastructure.
• Value Proposition: fully understand how consumers of your product/service value it to
price it correctly

Steps to monetize data


1. Establish a data strategy or data product function.

2. Inventory of the available data assets.

3. Draw inspiration from how other organizations from the same sector have
monetized data.

4. Identify ways to generate direct and indirect revenue streams from each data
asset.
In order to achieve this, the following is needed:
o Cost value of information when acquiring or replacing lost information.
o Economic value of information meaning the possible financial impact of a data asset.
o Market value information, the revenue that can be generated by trading this this
information.

5. Test monetization ideas for feasibility.

6. Prepare data product and establish a market


How do organizations monetize data?
Indirect monetization by adding value to the operations of the organization

▪ Using data to improve efficiencies through the typical data analytics


tools, optimization of business process or information-leverage of business
outcomes.
▪ Using data to develop new products and markets by understanding
markets, customers, trends.
▪ Using data to build and solidify partner relationships with industry
organizations and associations.
▪ Creation of branded indices, like Deloitte does with their Confidence
Index.

Direct Monetization

▪ Trading with information through loyalty programs, free


goods/services/apps…
▪ Data enhanced products or services like business apps with
benchmarks of all similar users.
▪ Selling raw data through brokers in a 3rd partly platform.
▪ Offering data/ report subscriptions through a platform.
▪ Creation of branded indices, like Deloitte does with their Confidence
Index.

Data as a Service (Daas)


Monetization of data means creating value of those data assets by having a data architecture geared
towards transforming data into meaningful data assets that can be put in demand to potential
customers via website.
Building blocks to put data into production
The below image shows the proposed framework by Gartner that simplifies the process of identifying
data sets, adding value to it and share it internally and possible externally through analytical tools
with the aim to generate new revenue streams by generating insights in the discovery process of the
organization.
What the future looks alike for the organizations that monetize date?
They have productized information or informationalized a product and as a result a new revenue
stream is created. They have generated a new market inviting new competitors to enter while
improving the enterprise appreciation in attention to data collection and management. And all of
this is starts determining the value of the organizations data assets and innovating in the ways of
managing data .

References:
Aiken, P., & Billings, J (2013). Monetizing Data Management: Finding the Value in Your
Organizations’s Most Important Asset.

Tunguz, T., & Bien, F. (2016). Winning with Data

Cassonato, R. (2016). Monetizing Your Information Assets

Gartner Report on Data Monetization link here

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