“In data monetization, the merging of major investments into data infrastructure, data management capabilities, analytics, even up to the perceptible shift toward Artificial Intelligence, is considered not only a cost center, but could actually generate new revenues and have a positive ROI”.
Organizations are generating value out of their data by using data and analytics (internally oriented value-creation): 1) For the company to meliorate cross-selling other products and services to existing customers. 2) To upsell products and services availed by the customer to upgrade customer experience and customer usage of the product and to look for secondary customer needs that can be solved by additional features of the product. 3) To increase brand visibility and meliorate marketing effectiveness in order to attract those who are not using the product. Organizations can look at external-oriented data monetization by several models: 1) Acquiring data: data augmentation for ‘richer” data by working with other organizations as sources of data and insights. 2) Providing data: real-time data as an asset. This includes bartering internal data with another organization’s in a direct exchange or in special exchange of value/service. 3) Producing but externalizing distribution: a hybrid model of data monetization, as a referral or registration fee to third-party data platforms, websites, and other channels. 4) Co-innovating and partnering with start-ups and the developer communities: third parties can use the organization’s data to build non-core capabilities and innovating organizations’ digital offerings based on Application Programming Interfaces (APIs). Some principles on data utilization may drive or hinder value generation. These ensure privacy impact assessment, the right to be forgotten, consent and inference, and data portability. The team leading the initiative to monetize data have to look at their initiative as a real build-a-business endeavour. The enterprise has to launch this as a real business, in keeping with the new ways of doing business in this vastly different, data-driven marketplace.