Data is valuable, so much that the fastest-growing companies are adopting data monetization imbibing them a vital component of their strategy. Every modern enterprise is a data-driven company. Data is everywhere in the enterprise, harnessed through strategic partners, supply chains, operations, customers, and competitors, what is critical is the insights derived from it that substantially increase that value.
How do enterprises value their data? That’s one most demanded question in the C-suite asks as the volume of big data grows exponentially. What is interesting to realize, that there is no finite answer. Data like air is free flowing, no wonder that data monetization focuses on increasing the economic value of data.
Leveraging from Data Monetization
There are two primary paths to data monetization. The first is internal focusing on leveraging data to improve an enterprise’s takeaways which include operations, productivity, and products and services
The second path is external that encapsulates creating new revenue streams by making data available to customers and partners.
Gaining the monetary rewards from data, or the ‘Golden Rules of Data Exchange’ include-
1. Understanding the Role and Data value in Business
Smart data utilization also helps in managing risk and provides assurance that the business is compliant with laws and regulations. But it can only serve this purpose effectively if you know where your data resides, how relevant it is and how valuable it could be.
2. Getting Data in Order
Before thinking about monetizing data, companies need to discover what kind of data they hold about their partners, customers, products, assets or transactions and what publicly available data can be called on to increase the value of their proprietary data.
3. Embed data monetization into Business Strategy
Executives should evaluate their key business goals and strategic initiatives through the lens of how data can support them. Once you understand the quality of data and have tied it to business strategy then you can put the right structures in place to monetize it.
4. The potential for data to deliver value is Enormous
Sometimes, though, it’s hard for companies to imagine quite what the opportunities could be because they are so used to pursuing growth through established strategies and revenue streams. That’s why all companies should be open to learning from other businesses and partnering in ways that make sense from a data point of view.
Communicate data’s value to Foster Growth
Monetizing data is still a relatively new experience for many organizations, and even when successful initiatives are in place they aren’t always known to the business as a whole. As data becomes more and more important, companies will need both to communicate and educate internal and external stakeholders so they fully grasp the value data can deliver.
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