A new generation of technologies is transforming “data exhaust”—vast stores of enterprise information of little apparent value—into fuel for high-margin, recurring revenue, according to a new IDC Analyst Connection publication.
“Organizations are literally sitting on goldmines of revenue, should they allow others to access or use their data,” writes Dan Vesset, IGG’s Group Vice President for Analytics and Information Management.
In fact, a May 2017 IDC study found that senior-level managers from 44% of top organizations are monetizing data externally. To help others do the same, the new IDC publication:
- Defines the concept of data monetization—also known as data as a service (DaaS)
- Outlines steps to turn raw data into profitable products
- Provides critical questions to guide your investment in the right DaaS platform
FROM EXHAUST TO REVENUE
Retail, telecom, credit card and media companies have been the first to capitalize on their data. But now, businesses are unlocking value across a range of new industries and data types, from agriculture and manufacturing to healthcare and entertainment.
Whatever the source of raw data, its monetization requires a three-phase process, according to Vesset:
- Data preparation, including data extraction, integration, enhancement, and cleansing. “Data preparation should include a mix of centralized and self-service functionality to address the needs of the overall enterprise and those of individual business groups.”
- Data management, including data storage, security, governance, lineage management, and analytics. To get it all right, you must choose the right platform for your DaaS initiatives.
- Data distribution, from pricing and packaging to marketing. “Data monetization is as much a business effort as it is a technology effort.”
THE RIGHT DAAS PLATFORM IS CRITICAL
While the three-phase process sounds simple enough, each phase requires many individual steps that encompasses a wide range of technologies and processes.
“A DaaS platform supplies not just the core data processing functionality but also the governance and control, go-to-market, and add-on analytics services,” explains Vesset. Obviously, each business must decide whether they want to build and manage it themselves or choose external DaaS platform providers. But before embarking on your own data monetization journey, check out Data Monetization: Capitalizing on Your Data Assets to hear what IDC has to say about:
- The forces that are driving growth in DaaS
- The technological and business requirements to turn data exhaust into a goldmine
- Critical questions to ask before choosing the right monetization platform