{"id":7411,"date":"2020-09-25T06:27:55","date_gmt":"2020-09-25T11:27:55","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=7411"},"modified":"2022-09-29T13:00:46","modified_gmt":"2022-09-29T18:00:46","slug":"its-the-age-of-data-time-to-incorporate-a-data-monetization-strategy-into-digital-transformation","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/its-the-age-of-data-time-to-incorporate-a-data-monetization-strategy-into-digital-transformation\/","title":{"rendered":"It’s the Age of Data, Time to Incorporate a Data Monetization Strategy into Digital Transformation"},"content":{"rendered":"

\"\"<\/p>\n

We are already living in the Age of Data. In fact, every organization operating today is essentially a data organization. However, only 1 in 12 are actually monetizing data to its full extent.<\/p>\n

Many organizations are already leveraging Data and Analytics<\/a> to generate growth. Data Monetization<\/a> is the means to\u00a0achieve that growth.<\/p>\n

To achieve Data Monetization, there are 2 pathways an organization can take–one with an internal focus and the other with an external focus.\u00a0 Forward-thinking organizations have already embedded Data Monetization Strategies<\/a> into their Digital Transformation<\/a>\u00a0and Strategy Development<\/a> efforts.<\/p>\n

The internal focus pathway centers around gaining Operational and Organizational\u00a0<\/strong>efficiencies by leveraging data to improve our operations, productivity, and offerings.\u00a0 It also enables ongoing, tailored dialogue with customers by leveraging customer data.<\/p>\n

The external pathway centers around making our data available to Partners and Customers<\/strong>. Through this, the goal is to leverage our data to create new revenue streams.<\/p>\n

These pathways are not mutually exclusive. We can pursue both pathways for both Operational and Revenue improvements.<\/p>\n

\"\"<\/a><\/p>\n

A successful Data Monetization Strategy requires us to focus on the highest-value opportunities that align with our Corporate Strategy. To better understand how to evaluate and prioritize these opportunities, let’s dig a little deeper.<\/p>\n

Path to Data Monetization: Internal Focus<\/h2>\n

\"\"As mentioned, the internal focus looks at improving Operations and Organization. We can categorize internal initiatives into 2 areas:<\/p>\n

    \n
  1. Cost Reduction<\/strong><\/a> – Data Monetization efforts leverage data to increase productivity or reduce consumption and waste (either of raw materials or low-value activities).<\/li>\n<\/ol>\n
      \n
    1. Revenue Growth<\/strong><\/a> – For top-line growth, we leverage data to improve sales performance or reduce customer churn.<\/li>\n<\/ol>\n

      Pathway to Data Monetization: External Focus<\/h2>\n

      The external focus explores new business models enabled by sharing data with Partners and Customers. Specifically, there are 3 types of new business models, progressing in levels of sophistication, value impact to customers, and, likewise, revenue potential:<\/p>\n

        \n
      1. Data-as-a-Service (DaaS)<\/strong> – Data is sold to end customers or intermediaries who analyze the data for insights.<\/li>\n<\/ol>\n
          \n
        1. Insight-as-a-Service (IaaS)<\/strong> – This business model takes to the next level by applying advanced analytics to the data to generate actionable insights.<\/li>\n<\/ol>\n
            \n
          1. Analytics-enabled-Platform-as-a-Service (APaaS)<\/strong> – We apply proprietary algorithms to generate enriched data for customers via a self-service platform.<\/li>\n<\/ol>\n

            The external pathway to Data Monetization offers much greater opportunities than the internally focused alternatives. Although Applied Data shows the greatest revenue potential and likewise value to customers, it also has the longest time to value. Therefore, we should carefully analyze each option and build a robust business case that balances our strategic vision, capabilities, and competition.<\/p>\n

            Interested in learning more about Data Monetization<\/a>? Check out our framework presentation, Pathways to Data Monetization<\/a>. It discusses the 3 business models in further depth, as well as how to implement your Data Monetization Strategy via Data Platform and Data Factory.<\/p>\n

            You may also be interested in this other framework, the Building Blocks of Data Monetization<\/a>.<\/p>\n

            Do You Find Value in This Framework?<\/h2>\n

            You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0FlevyPro Library<\/a>.\u00a0FlevyPro<\/a>\u00a0is trusted and utilized by 1000s of management consultants and corporate executives. Here\u2019s what some have to say:<\/p>\n

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            \u201cFlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it\u2019s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.\u201d<\/p>\n

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            \u201cSeveral times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients\u2019 benefits.\u201d<\/p>\n

            \u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

            We are already living in the Age of Data. In fact, every organization operating today is essentially a data organization. However, only 1 in 12 are actually monetizing data to its full extent. Many organizations are already leveraging Data and Analytics to generate growth. Data Monetization is the means to\u00a0achieve that growth. To achieve Data… It’s the Age of Data, Time to Incorporate a Data Monetization Strategy into Digital Transformation<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":11918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[84,81],"tags":[2175,1262,2174,917],"class_list":["post-7411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-information-technology","category-strategy","tag-age-of-data","tag-analytics","tag-data-monetization","tag-digital-transformation"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/7411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=7411"}],"version-history":[{"count":6,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/7411\/revisions"}],"predecessor-version":[{"id":11919,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/7411\/revisions\/11919"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/11918"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=7411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=7411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=7411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}