This past week, news broke of yet another huge data breach, this time involving the financial data of 143 million people that was stolen from Equifax. Obviously, the reason hackers break into systems and steal data is because they want to sell it for nefarious reasons. But many legitimate businesses also sell data, or monetize it in other ways. In fact, monetizing data has become a significant revenue stream for certain types of businesses, so much so that pundits predict it will become the primary revenue stream in some cases.
- Data monetization: A new way of thinking (Upside | Savaram Ravindra) “There are two ways you can make money from your data. You can create a supplemental revenue stream by providing access to your data (direct monetization) or use insights to improve your business services and operations (indirect monetization). Data monetization is not simply about turning over your existing data to another party. There are many other ways to utilize data that can impact costs or revenue.”
- Monetizing data: A new source of value in payments (McKinsey Insights | Alessio Botta, Nunzio Digiacomo, and Kevin Mole) “Any large business or bank has two types of customer data: line-of-business (LOB) data owned by a particular part of the business, and common data, which falls into two groups: enterprise-level data and supplemental data. Enterprise-level data consists of the same elements as LOB data—customer preferences, needs assessments, and so on—but spans the organization, and in most evolved enterprises is drawn from a single source, such as a data lake. Supplemental data ranges from raw data derived from external sources such as social media, weather data, and digital IDs to synthesized, value-added analytics that are captured through predictive modelling, sentiment analysis, and so on.”
- Whose data is it anyway? (CUInsight | Austin Wentzlaff) “The credit union should be focused on monetizing their own data and not giving that data away to someone else to monetize it for themselves and their own benefit. The fact of the matter is everyone wants your data. What company wouldn’t? It’s some of the most valuable data out there – where your members shop, how much they spend, what types of vehicles they have, or what their credit scores are, etc. Instead of giving away the value of its data, a credit union must figure out a means to monetize that data for itself.”
- How APIs will make your next fridge — or even your next car — free (ReadWrite | Mehdi Medjaoui) “Soon, car companies will make more money by making sense of where you are and where you’re going. Just imagine, if they can monetize at 20 cents/mile, on 100,000 miles they make $20,000: A free car. For 30 cents/mile, they almost triple their profits and can give the car away. They can collect and sell drivers’ data, traffic data, micro-location weather data, state of the road data and so on. They can sell ads on the radio or on the GPS with CPCD (Cost Per Change Direction), coupons to restaurants close to your destination, audiobooks to listen in the car — a lot of things to monetize your time and location in your car.”
Articles from Ohio Web Library:
- Chief Data Officers: The new oil barons. (Information Today, June 2016, p.18 | John Thielens)
- Monetize your data. (Leadership Excellence Essentials, April 2017, p.60 | Andrew Wells and Kathy Chiang)
- The smart thing to do: Practical applications of monetizing big data in finance. (KM World, July/Aug. 2017, p.10-12 | Jelani Harper)
