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As the world is increasingly digitizing, you might have come across stories saying how ‘data’ is changing the world. Data is used in whichever industry, helping cure diseases, boost company performances or help make buildings more carbon friendly (Panoho, 2019). In other words, this data is everyone’s best friend isn’t it? Well, for most companies not quite yet. Whereas some companies already effectively use data to help make better decisions (Deloitte, 2013), the mere amount have not captured the full benefit yet. To take full advantage of data, a company should first know how to create value form the data. They should think on how to exploit this asset (that data is) in order to convert that asset into money. This phenomenon of using data to increase revenue or decreasing costs is also known as: data monetization (Panoho, 2019).

Building a data monetization should be a companies’ main challenge. This challenge is complex and consist of various factors and decisions (KPMG, 2015). Illustratively, this article focuses on just one aspect; ‘road to commercialization’ It is essential for companies to explore and choose their effective road to commercialization (KPMG, 2015). These can be subdivided into three approaches. First, vertical value delivery commercialization means that data solutions are solely tailored to just a specific industry. Contrastingly, horizontal value delivery entails data solutions to be used in multiple industries (with similar needs) simultaneously. Lastly, firms could also decide on a cross-market value delivery in which data is used in multiple industries and for different purposes.

Having decided the road to commercialization, there are many other factors to include in an effective data monetization strategy. All in all, the success of such a data monetization strategy depends on effective execution (Deloitte, 2013). A digital strategy should be embedded throughout the whole company; including the right culture, organizational mechanisms, commitment and executive attention. An article on data monetization by KPMG (2015) pointed out that the first step is to assess the current state of the organization. Companies in this digitized world should differentiate through data-driven decision making, tactical analytics and building a comprehensive data strategy focused on a sustainable competitive advantage. All these factors are summed up in this diagram below which could serve as a data monetization framework for companies. This diagram depicts all factors and perspectives to consider when shaping such strategies.

With this article my aim was to create a better insight into the complexity of data monetization. The topic is briefly discussed in class but seems to involve numerous different factors in practice.

References

Phillips, T., 2013. The Analytics Advantage We’re just getting started, London: Deloitte.

KPMG, 2015. Framing a winning data monetization strategy, New York: KPMG.

Panoho, K., 2019. The Age Of Analytics And The Importance Of Data Quality. [Online]
Available at: https://www.forbes.com/sites/forbesagencycouncil/2019/10/01/the-age-of-analytics-and-the-importance-of-data-quality/?sh=4cae564d5c3c
[Accessed 29 09 2021].

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A peek into your future – by Martijn Linssen

Today’s consumer lives in a rapidly evolving world full of other hyper-connected human beings and data-driven companies. Currently, more than ever, accumulating and essentially utilizing this customer data is crucial to thrive as a firm (Google, 2018). Adding to that, customer data is not just used for being successful in the present, but these customer insights can effectively be used to predict the future. We are surrounded by information that can help predict how consumer behavior will change over time. Through the analysis of two interesting market research reports (Google,2018; Mintel,2019), this blog provides an evidence-based peek into your future.

Technological advances are at the forefront of determining how we will consume within the next 10 years (Google, 2018). A report by Mintel (2019) predicts 5G and mobile technology to play a big role in blurring lines between time, travel, learning and leisure. With an expected 125 billion devices connected to the 5G network by 2030, it is expected that virtual and augmented reality (VR/AR) will create a dominant role in various industries like tourism and entertainment. The rising popularity for augmented travels will only be boosted as the rising climate change awareness makes customers rethink their carbon footprint whence booking a plane (Google, 2018). However, I am in doubt whether the mass-consumer will be open to virtual/augmented travelling and whether it has the potential of dominating the travel industry. An identical real-life experience of a country’s ambiance and people will be extremely hard to re-create using technology. It is the need to see, taste and experience new things that keeps people travelling isn’t it? Technology will still not be able to replicate and fulfill the needs for tasting and creating real-life experiences in my opinion.

The paper by Mintel (2019) describes another interesting development in the sports industry that is likely to happen due to the fast technological advances. It is expected that 5G enabled virtual esports will create an enormous boost and eventually overtake physical sports in popularity. Virtual esports allows the tech-savvy consumer to work-out seamlessly on an international stage. Personally, I definitely see the potential of esports becoming a popular alternative besides physical sports. Being able to choose your league effectively through the internet, and being able to compete with fellows a competitive international stage, are definitely great value propositions that I do believe tomorrow’s consumer would hold on to. However, I am not quite sure whether it has the potential to overtake the physical sports industry.

References

Schmidt, S. L., & Stoneham, K. (2020). Beyond 2030: What Sports Will Look like for the Athletes, Consumers, and Managers. In 21st Century Sports (pp. 293-301). Springer, Cham.

Google. (2018). A peek into your consumer’s future. California: Google.

Crabbe, M. (2019). Consumer Trends 2030. London: Mintel.