Evolve How Your Company Approaches Data
In the same way keeping up with the internet is key to your success, so is maintaining an adaptive data strategy. If you consider data to be the commodity of the internet, it’s essential to have a positive and value driven relationship with those who create it.
The current data environment is imbalanced. Controlled by few, contributed by everyone. It is an exploitative model. It is an inefficient model. A model which needs to evolve.
I often compare it to the way in which serfdom was built in feudal societies when land ownership was first introduced, where the Crown and a select few, dominated and controlled the profits from agricultural production. While the serf maintained access to the land they needed, they did not receive any value from the yield of their labour, simply access to the farming way of life.
“Power corrupts; absolute power corrupts absolutely” Lord Acton (1834–1902)
Now swap the serf with the modern individual, the digital nomad, consider the beginning of land ownership to be similar to every single digital platform and app you’ve used since the creation of the internet. In the same way serfdom progressed into more effective free market structures thanks to technology and innovation so will the current data landscape evolve into a more efficient, rewarding and competitive ecosystem.
Upgrading the data economy
We currently have the technology for this to happen. It will be a system which can immediately provide value to the individual who produces the data, and in turn better insights to the businesses utilising that data to improve their goods and services. One which can foster a stronger, more personal and purposeful relationship between the consumer and the business.
The secret is providing a transparent, value driven and transactional relationship between the individual and businesses. Now this is a whole lot easier when the trust aspect is decentralised. There are ample reasons to cooperate with your customer in a decentralised data marketplace, especially if owning their personal information and digital footprint is no longer a precursor to attaining competitive data insights. Data ownership and security is an important problem to solve especially considering the events surrounding Facebook and Cambridge Analytica.
How to acquire data
Currently, most companies only have access to information on their own customers, rarely on people outside their user base let alone future customers or those of their competitors. This is is fuelling the creation of data monopolies. It’s time to do data better.
A study by McKinsey & Company states that making data more liquid will unlock 5 trillion US dollars per year.
To understand the customers outside of your ecosystem requires requesting information from a third-party intermediary, there are few big data brokers out there, more often than not the data you can afford is outdated and not as comprehensive as you’d like, it is an incomplete snapshot from a previous time.
What are some of your other options?
You could acquire another company. Let’s say a smaller competitor, in other words buy more land, and in turn use those datasets to optimise your own. Now that’s an expensive practice to get into, one reserved for huge corporations. Whose needs are often disassociate from the customer and only contribute to the current monopoly on data.
That’s exactly what’s happening, there is a data land grab going on at the moment. You betcha, they are scrambling to acquire as much as possible before the data landscape changes for good. A more free data market is inevitable.
The issue is, many companies don’t want to sell or share their prized data as it’s seen as a competitive advantage, it’s either too good to lose or they are simply not allowed to due to consumer protection legislation.
Having a consent driven real-time value exchange between the relevant customers and your company, on a regular basis simply makes more sense.
In the past there was a lack of transparency with regards to the ownership of data. This has since been recognised by many governments as a significant problem. It’s a good thing the legal and regulatory framework for data is catching up.
The EU GDPR changes being implemented next month and changes to the Australian legislation introducing Consumer Data Rights at the end of the year provides the individual with the power to take control of their data. Creating an appropriate avenue to finally receive value from living a digital life and create a data footprint.
How can I innovate and take advantage of these fundamental changes to the data landscape?
If data is the digital personification of your customers, therefore shouldn’t you respect it like you would the customer?
It is tried and tested that providing value to the customer is the best way to show respect for their custodianship. Provide the customer a mechanism to accumulate value from their data before you consolidate and analyse it for insights. Foster a positive relationship, one based on cooperation and reciprocity. This will make your data ethically derived and exponentially more useful.
Having trouble finding and implementing these solutions?
We can help.
bron.tech puts your customer as a top priority when building marketplace which exchanges value for data. With their consent, users are rewarded in our native currency for contributing their data, whether that be spending receipts or digital footprints. This currency can then be exchanged for real value and utility within the ecosystem or externally. There are numerous advantages to becoming apart of this ecosystem.
- Accurate data from a diversity of customers
- Extracting data with consent
- Real-time updates to the data pool, removing the issue of data decay
- Data contribution is incentivised
- A more competitive marketplace, avoiding data exclusivity
- Bron API provides seamless interactions
- Blockchain technology improves data security, giving no single data honeypot for hackers.
- Easy to use consent management where users can op-in and op-out seamlessly.
- Improved trust mechanisms
Would you like to hear more about the bron.tech value proposition and become apart of the ecosystem?