One of the applications of analytics that excites us most at the APEX of Innovation is insight monetization—that is, data’s ability to inform new products, create new revenue streams, and drive innovation.
A recent Forbes article outlines the chief steps companies must take to effectively monetize their insights, including:
Data is typically captured and stored in various formats, types, and systems. Organizations need to establish a process for transforming this information into a standard data model and data type. This addresses data quality concerns, and also ensures that the data can be easily queried and processed for deriving the resulting insights.
Generally speaking, the more granular and detailed the data, the more precise and accurate analytics can be performed.
Middleware and channels play an important role in delivering data and insights to consumers. In situations where the data and insights must be delivered synchronously, companies can use APIs to disseminate the information. If the delivery is asynchronous, on the other hand, organizations should consider ETL (extract transfer and load), EIA (enterprise application integration), and other data integration mechanisms.
Data is a valuable business asset and it’s important that the inclusion of data in any data product comply with the company’s rules on privacy, security, and other data ethics concerns. Compliance considerations can be addressed using data manipulation techniques like encryption, anonymization, scrambling, ant tokenizing, and masking.
If an insight cannot be taken to the market to improve business performance or competitive advantage in some form, then it’s not truly monetizable. As companies seek to commercialize their product, they need to build an ecosystem with the right pricing, and also consider how the data product will collaborate with other products in the value chain.
Head over to Forbes for more detail on the above steps, along with other considerations for enhancing business productivity through data products. And for more on insight monetization and some industry-specific examples, take a look at this previous APEX of Innovation post.