Data Valuation and Data Monetization Strategy
Data Monetization: Initial consultation
Regardless of your organization's size, HORIZON is ready to assist you in understanding whether data monetization could be a valuable strategy for you. We offer comprehensive initial consultations with rapid turnaround (typically 1-2 weeks) designed answer the question, "Does investing more in data monetization make sense for my organization?".
Read on for more details. Contact us to discuss whether this initial consultation is right for your organization.
What is data monetization?
Data monetization is about making data work harder for your organization by improving your processes or product offerings and/or by packaging and selling your data to others.
Think about your own organization: what data do you collect, for what purposes? Could you put these data to work in ways that would make operations more efficient? With appropriate tweaks and/or additional variables, could you make your data valuable to others?
Most organizations collect data in the course of their operations - often for specific business purposes (e.g., monitoring quality or efficiency, refining marketing strategies), and occasionally for ancillary reasons. Forward-looking management teams view this data as a potentially valuable asset not just for their organizations, but also for others. Firms such as Amazon, Facebook, and Spotify have deployed extremely successful data monetization strategies in selling data on their customers' attributes and tastes for retail products and music to other companies. Two trends - the rapid expansion in demand for data globally, and market innovations that further enhance data buyers and sellers' abilities to identify one another - come together to make data monetization an increasingly sensible option for many more organizations. For example, quantitative hedge funds now regularly purchase "alternative data" (e.g., data collected from mobile apps or sensors) that may be leading indicators of specific kinds of economic activity, helping these funds earn higher returns.
What factors are important to consider?
Having data is not the same thing as knowing how to sell it. To evaluate data monetization as a potential strategy for your organization, you need a framework. As with developing any new product, data valuation and monetization involves a number of key considerations, including:
- Target market/customers and potential market size
- Valuation, cost, profitability, and pricing
- Risks
- Value proposition and plan for demonstrating value
- Competitive landscape
- Product design and packaging (e.g., ensuring consistency, accuracy, and reliability; creating the appropriate distribution platform and channels)
- Marketing strategy
- Compliance, regulatory, and privacy
Why HORIZON? Our approach and experience
HORIZON is well-positioned to guide your organization in assessing the potential value of data monetization. Our approach reflects input from actual data purchasers (including hedge funds seeking alternative sources of data that can provide them with increased returns) and, like all of our consulting work, is guided by the scientific method.
The first and most difficult task in developing a data monetization strategy is understanding the potential value of your data to different possible target markets. HORIZON's approach starts here for two reasons. First, we've seen too many products (data and otherwise) fail because their value propositions were unclear. Second, even under ideal circumstances, convincing someone that your data is valuable to them takes planning and expertise. We tackle this initial step by helping you think through what potential end users' business needs are, what the most appropriate data and methods would be to address those needs, and how your data relates to that ideal. Once a viable plan is in place to address these challenges, you can have greater confidence in the rest of the process.
How to get started
Our experienced data science professionals will draw upon HORIZON's deep business, statistical, and domain-specific expertise to help you evaluate the potential for data monetization to increase your organization's profitability and understand the path forward. We are proud to offer our data monetization strategy services to organizations of all sizes.
Visit the rest of our site for more details on our approach and capabilities. Contact us to learn more and schedule an initial consultation.