Data monetization and new normal
We always hear about “Data is the new oil”, and now, we’re hearing the COVID-19 pandemic will cause the biggest economic crises of the century.
In “crisis time” we always have “troubles” and “opportunities”, how to start turns serious the “Data monetization” business?
Reimburse users when get their personal data to increase assertiveness from your AI solutions sounds strange for you? If yes, change your mind. That is the new era, new normal, and so one. To turns AI useful and assertive we need data, qualified data. Don’t exist a magic algorithm what change nonqualified data into good data.
The perfect way to have the data you need is to ask your customer what you want from them and where you’ll use that, for what. If your customer felt he/she will have any prize with that, they will give you the data.
When you send your cookies and block the page if the user doesn’t accept, to give data without you say for what, or if he/she will have any advantage for it, you think that is a good way to do digital marketing? You didn’t gave them any choice, and think they like it?
I guess the majority people think like me, and hat that king of site, never go back there. Then, try to change your strategy.
Being aligned with all data privacy policies, you will ask and give options to the user access your services with or without given you all their personal data. You could clarify what data is significant to delivery your services and what are optional for them.
What give them the option to have prize them with some discount, privileges or with a digital wallet? That sounds a better approach.
In pandemic’s times the majority people need alternative to reach money. Receiving discounts or some prizes could help them on that phase, and ad value to your brand.
The Gartner consulting had described as “Infonomics” the new discipline of managing and accounting for information, what has the same rigor and formality as other traditional assets and liabilities (such as financial, physical, and intangible assets and human capital).
They describe that as: “Infonomics posits that information itself meets all the criteria of formal company assets, and, although not yet recognized by generally accepted accounting practices (GAAP), it is increasingly incumbent on organizations to behave as if information were a real asset. “
As you could see, the best practices in “Data Governance” could generate best financial value to your company, an article from site “AI Multiple” they said the following:
“Information drives business processes and decisions. According to Gartner, 30% of leading organizations will adopt infonomics practices and value their information assets, maintaining a balance sheet for internal purposes by 2022. As business and IT leaders recognize the importance of information, taking advantage of it gets easier because the potential of generating revenue from information can be higher than traditional assets due to two limitations of traditional assets:
•Traditional assets have transactional limitations which means they cannot be used simultaneously across multiple use cases. For example, an airplane can only fly one route at a time.
•Traditional assets’ value decreases with usage. Secondhand assets are always cheaper than first-hand ones.
However, data as an asset doesn’t have these limitations, in fact, its value increases as it is processed more.”
As you could see, data becomes more and more valuable in different manners of being applied.
On other hand, we have the IoT data and all streaming data what companies could generate, ingest, treat and sell as qualified data to other companies.
One example, the ability to cost effectively connect “things” and collect a wealth of data from them, could enabled companies capabilities to moving from being just a product manufacturing, to a company that generates a wealth of data, or data monetization company, what builds products as a ways to provide a broader stream of services around the product, which is underpinned by the analysis and resultant insights from the data they produce.
A practical example is Rolls-Royce is a UK-based company that formerly built jet engines, sold them, and then provided services to the customers who purchased its engines. But now, Rolls-Royce has instrumented each engine tracking thousands of operational data such fuel usage, cabin pressure, cabin environment, and specific data about the flight, including altitude and wind. Rolls-Royce’s operations center receives all this data, which is then analyzed in real-time to provide insights about ongoing operations. Operational anomalies can be detected while the flight is in operation, and logistics for any necessary maintenance can be planned to minimize any flight disruption while also assuring passenger safety.
You could think that kind of opportunities is just for bigger and international companies, I say no.
Every small business could use and get advantage from the data you generate and manage. The secret is the way you manage your data. But I could talk more about it next time.
Sources:
Site AI Multiple — https://research.aimultiple.com/infonomics/
Site Gartner — https://www.gartner.com/en/information-technology/glossary/infonomics
Site Machine Design — https://www.machinedesign.com/automation-iiot/article/21837630/data-monetization-and-the-new-economy-for-connected-things
The Author:
· Owner and Chief Data Officer at Analytics Data Services Consultancy;
· Professor in Post-Graduation in BIG Data Analytics for SENAC University and Special Classes for Instituto D´Vinci3 for Data Science technical course;
· Certified Chief Data Foundations Specialization — MIT/USA;
· Master’s degree in business administration emphasized in Marketing — FGV/Brazil;
· Main career developed on High Technology for Financial, Insurance and Retail sectors.
· Writer off two books: O profissional de Inteligência Competitiva, Publicit, 2014 and Pesquisa de Marketing, Série Universitária SENAC, 2017, all available on amazon.com.
