Data monetization is when you make your collected data work harder by offering these to businesses and individuals outside your organization. It is no question that companies using big data to help their managers make better decisions about everything from their operations, to their inventory, to their sales and even to new products. And because gathering, keeping and analyzing all these data is not cheap, most companies would be finding ways to somehow earn from all that data either by trading it for useful data gathered from other companies, or simply selling it to interested parties.
So it is no surprise that according to Gartner, around three out of ten businesses will be monetizing their data come 2016. Faced with rising costs of handling and storing big data, many companies will try to turn their data into information products. Some companies are now doing it, putting their collected point of sale data, as well as other information, online. Their partners pay to access the data. The whole set up has generated millions of dollars a year for these companies.
The pie is not limited to businesses who gather their own data. Because most companies are not information product developers and they do not have a thorough understanding or expertise of big data handling, there will be a need for intermediaries who act as data and information resellers or brokers. These are third parties who work with the company to come up with information-based products using the data that has been gathered.
Businesses who monetize their data should take extra steps to ensure that their customers’ privacy is safeguarded at every step of the way. They should be very transparent in how they collect their data and how they intend to use it. Or they may face public backlash for their actions, and maybe get investigated by regulatory bodies for improperly gathering and using customer data.
On the part of the consumer, they need to realize that their information carries with it a certain monetary value. Be it their location, personal details, usage trends, or activity, these bits of information are valuable to the companies they patronize and other companies as well. As such, they should secure it or demand something in exchange for their information. It could be a free product, service or even cash.
Amidst all these, there is a new set of technologies that are emerging. Traditional databases are not well-equipped for data monetization, and are not designed to share data in a subscription-based manner or any other way. Therefore, we are seeing emerging technologies that enable subscribers to access the data, even those restricted one in smaller segments. Most of these technologies are cloud-based, forcing most companies that are monetizing their data to get into the cloud.
Thinking of monetizing your data or just starting out with handling, storing and managing big data? Contact Four Cornerstone and we can help you make sense of all the data that you get. From knowing what to do with all the data you are getting to helping you come up with great information-based products, even augmenting the data that you are collecting with data that helps make it more valuable. Talk to us today!
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