In the digital age, a lot of data is collected by companies. Know that they are valuable and can be leveraged. In 2019, The Business Applications Research Center (BARC) published a survey revealing that monetizing business data is only in its early stages, but is becoming an increasingly explored solution.
What is data monetization?
The data collected is increasingly seen as an asset by companies. Indeed, they are numerous such as personal ones (age, name…) or even statistics (example: number of customers). These data have value. The information can be monetized to anyone who wants to use it. Any data can be exploitable. Companies would be wrong not to profit from them by making them profitable. Monetization therefore consists in exploiting and monetizing this data. And thus generate new income, in addition to the turnover of the company.
In fact, the BARC revealed in its recent survey that 17% of companies
of respondents have initiatives in data monetization, 37% are only in the planning stage. It has therefore become a more than credible alternative. Although a quarter of respondents said that at this time the data is not monetized.
Solutions to enhance and monetize data: monetization!
There are many possible ideas for monetizing and making data profitable
of business. It is possible to exploit them, develop them and thus make them profitable.
First, internally to find new solutions. This is intended to improve the performance of the company. This is one of the easiest measures to put in place.
Within the same organization, different departments cooperate by collecting this data, such as that on employee performance. Then, they are pooled. Note that it is imperative to identify their roles in order to better benefit from them.
Good management gives decision-makers more weight. And especially when they plan to enter new fields of activity. This enables more informed operational decisions to be made. Another possibility is to create products and services. According to McKinsey, the most successful companies will add new data services to their offerings – 4 times faster than others.
And then, externally by selling them. Directly or through an intermediary, a Data Broker. The latter buys, aggregates, refines and resells data. They are numerous. Among them, some stand out, such as Acxiom, Experian or Datalogix.
It is also possible to share them, for other data or for goods or services. It is interesting to collaborate with companies having access to the same types of data. They will thus be able to derive more profit from it than by working alone.
A financial impact for businesses
Monetizing corporate data can be a real alternative to generate additional revenue. Web giants such as Google and Facebook have understood this well and made it a major business. As for the famous search engine, it is easy for it to identify the centers of interest of its users and thus use this information, to profit from it. Even if this use of data may raise questions about their confidentiality.
As with Facebook, which has exchanged user data with many partners. These data are more and more popular and numerous. This makes it easier for companies to monetize them. But you also have to be competitive by making the best use of them, and in particular by diversifying your data sources. It has therefore become a significant new economic model for companies.
With the emergence of big data, corporate data is becoming more and more important. Thanks to these solutions and good management, their monetization can therefore be a real advantage, a new source of income, easily exploitable. They should therefore not be neglected, even if one must remain cautious and in particular with regard to the confidentiality or not of this data.
Do you want to know more about your data and how to use it wisely? Do not hesitate to contact us now!
Three ideas to remember
What is the benefit of data monetization for businesses?
All of the data collected by companies can be considered an asset. They have value and can be exploited and monetized, to generate new income in addition to turnover. There is a lot of data, like personal and statistical data.
What are the solutions to make data profitable?
Internally, to find new solutions, improve business performance. Collect data, create products and services. Good management enables more informed operational decisions. Then externally, by selling them. Directly or through an intermediary, a Data Broker. It is also possible to share it, for other data or for goods or services.
What is the economic impact for businesses?
With good management of this data, this can be a significant solution to generate new, easily exploitable income. We must also be competitive by making the best use of them, and in particular by diversifying our data sources. But we must remain cautious about the confidentiality or not of this data.