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In brief: What is Data Monetization?

by Mike Davie•
Intel Data Center GPU codenamed Crescent Island architectural slide showcasing Xe3P AI optimized GPU IP, up to 480GB LPDDR5x memory capacity, and a 350W air-cooled PCIe form factor.
Intel’s Crescent Island GPU targets AI inference economics by prioritizing massive LPDDR5x memory capacity over costly HBM architectures within a practical 350W air-cooled design.

In almost all that we do these days data is being generated and collected. Organizations are gathering vast amounts of data; from internal billing and payment systems, customer service reports, marketing analytics, and product and services usage to media-generated information about the company, customers and its competitors.

All of this data is required for businesses to run. This information however is far too valuable to be just stored and kept after a transaction is completed. Organizations should be aware that the data they gather and keep can be monetized to further add to their top line.

Data can be used to generate profit

Simply put, Data Monetization refers to the process of converting organizational data into currency, which can come in the form of actual money or to ways by which data is used as a service or product enhancement . These are classified as direct monetization; the process of openly transacting data assets in exchange for monetary gain. Other examples include offering report/data subscriptions; selling raw data through brokers; and selling information-enhanced services or products. This is also labelled as Data Commercialization.

On the other hand, indirect monetization refers to the process of obtaining monetary gain through business optimizations that result from using data as the foundation. Examples include the publishing of branded indices and the use of data to solidify and build partner relationships; to develop new markets or products; to measurably reduce risks; and to improve efficiencies (e.g. improving customer service and satisfaction and identifying and stopping revenue leaks).

Data can be a source of competitive advantage

The emergence of big data enables organizations to compete better. In addition to enabling them to improve their processes and results, big data also helps organizations differentiate their products and services from the competitors’; support business growth; and save on costs. It gives companies real-time insights into product development, marketing, sales, finance, and others; thus, enabling them to make better and smarter decisions. It provides them with more opportunities for identifying sales peaks and customer behavior trends, which improves customer relationship, thus, providing the company a competitive advantage. Moreover, data-driven strategies can be used for innovating, competing, and capturing value. The data gathered and analyzed can be used to design future products or create new service offerings.

As Tractica analyst Bruce Daly points out, Companies that are most progressive in thinking about data differently are the companies that are changing the economy, like Google and Uber.

The Data Commercialization process

For companies looking to commercialize their data the process involves a framework that identifies high-value data assets; structures the data as a product; and markets and delivers it. By working step-by-step through the process companies can reduce the risk and complexity which in turn speeds up the process. For companies with unique and in demand data assets, the process pays by directly contributing to the top line.

In conclusion, companies that properly monetize their data assets can gain a competitive edge. Data has the potential of providing better insights on customers and their behaviors, as well as on products and capabilities. Still, many companies miss the opportunity of generating economic value from the data they collect.

Stay head of your competition by capitalizing on the data economy. For more information about the data monetization and commercialization, visit datastreamx.com.

Mike Davie has been leading the commercialization of disruptive mobile technology and ICT infrastructure for a decade with leading global technology firms in Asia, Middle East and North America.

He parlayed his vision and knowledge of evolution of ICT into the creation of DataStreamX, the world's first online marketplace for real time data. DataStreamX’s powerful platform enables data sellers to stream their data to global buyers across various industries in real time, multiplying their data revenue without having to invest in costly infrastructure and sales teams. DataStreamX's online platform provides a plethora of real time data to data hungry buyers at the click of their fingertips, enabling them to broaden and deepen their understanding of the industry they compete in, and to device effective strategies to out-manoeuvre their competitors.

Prior to founding DataStreamX, Mike was a member of the Advanced Mobile Product Strategy Division at Samsung where he developed go-to-market strategies for cutting edge technologies created in the Samsung R&D Labs. He also provided guidance to Asia and Middle East telcos on their 4G/LTE infrastructure data needs and worked closely with them to monetize their M2M and telco analytics data.

Mike has spoken at ICT and Big Data conferences including 4G World, LTE Asia, Infocomm Development of Singapore's IdeaLabs Sessions. Topics of his talks include Monetization of Data Assets, Data-as-a-Service, the Dichotomy of Real-time vs. Static Data.

To participate in the new Data Economy: www.datastreamx.com

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