A recent KPMG Insights article asks a question on every executive’s mind these days:
What is the value of data?
Simply put, the answer’s not that simple. According to the article, this is because “unlike tangible assets, the value of data can grow the more ways it is utilized and the more insights that are drawn from it.”
Whether your company is well underway in executing on its data monetization strategies or you’re still exploring which options are best for your business, we’re here to help. The KPMG article offers up five rules for getting data monetization right, providing some very useful guideposts for success. See them below:
- Understand the role and value of data in your business: Today’s companies need a change of mindset. Executives must view data as an asset with real market value. By understanding where your data resides, how you can use it to derive value, and how much it is actually worth in the external world, companies can begin to effectively use data monetization as a growth strategy.
- Get your data house in order: Focus on data quality and knowing what data sources you require to drive a data monetization strategy. This can include internal data on partners, customers, products, transactions, and more. It likely will also include data from external sources, such as data marketplaces, as well.
- Embed data monetization into business strategy and get the right structures in place: Make sure the data strategy is connected to the business strategy—an often overlooked requirement, according to KPMG. This includes clearly understanding how data supports business goals and building cross-functional teams to execute on data monetization initiatives.
- Be open to new opportunities: According to KPMG, successful data monetization requires a “data point of view” and the willingness to work with other businesses, in favor of using established strategies and revenue streams. By using data that you already have, you can discover new ways to engage customers, new products to develop, and new markets to serve.
- Communicate data’s value internally and externally to foster growth: Data monetization is a new topic for most people. As your company notches successes, be sure to communicate the business value and educate key audiences both internally and externally. This includes employees from every part of the company as well as partners and other key stakeholders.
To explore data monetization strategies and practices further, see this recent APEX of Innovation post titled, Data Monetization — Everybody’s Doing It, Why Aren’t You?