Monetizing Data

By KC Costales

“Data is the new oil,” a phrase that we have been hearing for some time now. So how can we monetize data?

Before anything else, what does data monetization mean? Data monetization refers to the process of using data to obtain quantifiable economic benefit. We need to have a clear understanding of the role and value of data in our business — data that can be used to help increase productivity and reduce consumption; data that can lead to cost reduction and revenue growth, which, at the end of the day, impacts the bottom line.

I would like to share what I have learned from the MAP webinar that I attended.

• Healthy data, healthy business
• 7 out of 10 largest public companies are either data exchanges or provide data infrastructure

5 Rules of Data Monetization

1. Understand the role and value of data in your business — what data is available to support the growth of the business.
2. Get your data house in order — metadata and data quality is essential.
3. Embed data monetization into the business strategy and get the right structures in place — aligning business goals to data management initiatives.
4. Be open to new opportunities — build a healthy culture with agility to innovate with new products/services.
5. Foster growth and communicate data’s value internally/externally — democratize data and foster the use of data.

2 Main Ways Companies Can Monetize Their Data

1. Cost Reduction — using data to increase productivity or reduce consumption and waste (either of raw materials or low-value activities)
2. Revenue Growth — using data to improve sales performance or reduce customer attrition

Delta Plus Model: 7 Elements of a Successful Analytics Program

1. Data — high-quality and accessible data
2. Enterprise — a strategy for analytics
3. Leadership — getting support of leaders and getting them skilled; make them champions of analytics
4. Targets — establish clear targets
5. Analysts — professionals who will be performing the analytics
6. Technology — needs to be selected based on how they perform and how you want to scale your analytics project
7. Analytical Techniques — sophistication of algorithms and other measures

Data Value Chain — Increasing Value of Data

• Collection — identify, collect, process
• Publication — analyze, release, disseminate
• Uptake — connect, incentivize, influence
• Impact — use, change, reused

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About the author:

KC is a graduate of BS Psychology from Miriam College. She enjoys basketball, billiards, tennis, and plays the piano, banduria, and guitar. She also practices Mixology for fun and finds barbeque parties the best way to unwind with friends and family. KC believes that while one always has to perform their best at work, they should never compromise their mental and personal well-being.

Sources:

5 rules of Data Monetization: https://home.kpmg/xx/en/home/insights/2019/04/the-five-rules-of-data-monetization.html

Demystifying Data Monetization — MIT Sloan Management review

https://opendatawatch.com/publications/the-data-value-chain-moving-from-production-to-impact/

Davenport, T., Harris, J., and Morison R. Analytics at Work: Smarter Decision, Better Result