The term data monetization is trending in the data management world.
Data monetization is about harvesting direct financial results from having access to data that is stored, maintained, categorized and made accessible in an optimal manner. Traditionally data management & analytics has contributed indirectly to financial outcome by aiming at keeping data fit for purpose in the various business processes that produced value to the business. Today the best performers are using data much more directly to create new services and business models.
In my view there are three flavors of data monetization:
- Selling data: This is something that have been known to the data management world for years. Notable examples are the likes of Dun & Bradstreet who is selling business directory data as touched in the post What is a Business Directory? Another examples is postal services around the world selling their address directories. This is the kind of data we know as third party data.
- Wrapping data around products: If you have a product – or a service – you can add tremendous value to these products and services and make them more sellable by wrapping data, potentially including third party data, around those products and services. These data will thus become second party data as touched in the post Infonomics and Second Party Data.
- Advanced analytics and decision making: You can combine third party data, second party data and first party data (your own data) in order to make advanced analytics and fast operational decision making on order to sell more, reduce costs and mitigate risks.
Please learn more about data monetization by downloading a recent webinar hosted by Information Builders, their expert Rado Kotorov and yours truly here.