So when was the last time the CEO asked “what’s the value of our corporate data? Are we making money off it? Can we sell some of our data?” Some CEO’s and COO’s are starting to ask this question, but not enough. In our own research, we found that out of 80 CEO’s only 4 had considered there may be added value to their corporate data. Yet none knew quite how to go about figuring this out.
Approaching the CEO About Data Value
CEO’s are all about making decisions. That’s their day. They rely on their senior management team to bring them the right information to make a decision. While CEO’s are beginning to see the value of analytics based decisions, many don’t realize the full value potential of a company’s data. If you want to get their attention, you need to hit the right buttons and the two buttons that will get their attention? Understanding the value of a company’s data can generate new, ongoing revenue streams with minimal cost (it’s pretty much at margin) and properly understood, corporate data can be an asset on the books, further adding value to the company and it’s shareholders.
Unlocking The Value of Your Corporate Data
If you want to unlock the value of your data, you first need to understand what you collect, where you collect it, how you collect that data and what you do with the data you collect. From this activity, you can better understand your data exhaust (the data you don’t use) and how you are using that data to make decisions and run the company.
To do this, don’t thrust the project into the hands of your Business Intelligence team or data team and say “figure it out”. That’s a recipe for disaster. Not because they aren’t capable, but because you’ll miss a tremendous amount of value. You need to involve senior marketing executives, sales leaders and operations. Such a mandate should be driven by a champion on the senior management team. Additionally, it can never hurt to bring in an outside set of eyes that understands how data can add value and how to package it as an asset.
Making New Revenue from Your Data
When you have put a valuation on your data and the corporate mindset understands and views data as an asset, you can begin to look at new revenue opportunities. These may range from selling raw data exhaust or packaging data exhaust to resell to suppliers to selling certain data to other industries on a subscription basis. There are a number of business models that can be employed. Remember, this is very low cost since you already collect the data. Margins are high and recurring revenue opportunities abound.
If you decide to package and resell the data, there will be some governance considerations. You have to ensure privacy compliance with local and federal laws, security of the data being sold, quality of the data (veracity) and how the data is transferred/accessed by the buyer.
Have more questions? Contact us to learn more.