Every successful enterprise wants to rake in as much revenue as possible in order to continue to thrive and grow. However, many organizations aren't aware that the data they collect every day can be a significant source of revenue for them. As 2023 nears, more and more organizations are hopping on the data monetization train as they realize that data is becoming an extremely valuable asset. A good data monetization strategy is what could launch your organization into the next level of success. That's why building a data monetization strategy is even more vital for the coming year.
Data monetization is the act of generating measurable economic benefits from available data sources. It allows your organization to unlock the external value of your company’s internal data. The data that your company has collected and used for internal purposes can actually be extremely valuable to other organizations, and your company could be earning an entirely new stream of revenue by simply sharing that data.
Data monetization is expected to generate massive waves of revenue for companies in 2023 and the years to come. According to a recent market study published by Global Industry Analysts Inc., the global market for data monetization is set to reach $4.1 billion by 2026, growing at 16.7% annually.
So, how does your enterprise make sure they are getting a piece of the data monetization pie in the new year?
As your business plans its data monetization strategy for 2023, it’s important to design your strategy in a way that optimizes your company’s data investment returns. In order for companies to make data a successfully monetizable asset, they will need to develop a data monetization strategy that mixes: improving, wrapping, and selling initiatives.
The “improving” and “wrapping” approaches to data monetization are ways to indirectly monetize data through process and/or product optimization.
“Improving” means that your business is using data to redesign and optimize internal processes and tasks. It’s a no-brainer as most every enterprise is already practicing this data monetization strategy in some capacity. Using data to make operations more efficient and cost-effective creates new innovative opportunities and reduces resource waste.
“Wrapping” means that your company is using data to enhance the value of existing products with complementary reports, visualizations, scores, benchmarks, alerts, and automated actions. It’s undeniably important to distinguish your company’s unique products and data wrapping serves as a way to cater to customer experiences.
Wrapping increases the value of your product as well as the customer’s willingness to buy your company’s product. By constantly augmenting your products with valuable data, your company establishes customer loyalty, increases the lifetime value of each customer, and leads to increased customer referrals.
Selling data means exactly that - it is the process of converting your company’s data directly into revenue. As 2023 approaches, more businesses than ever are clamoring to put their data assets into the data economy in order to generate revenue. Data is now seen as a viable and lucrative “product” that can be packaged, marketed, and sold. The most forward-thinking organizations are not only selling non-information products, but also selling quality information solutions.
The fastest and most cost-effective way to sell data assets as products is to use a data collaboration platform. These platforms provide the automated tools necessary to package, market, and deliver custom data products to multiple buyers. It is predicted that as 2023 unfolds, more than a third of organizations will be either sellers or buyers of data within online markets like data commerce platforms.
Data collaboration platforms make buying and selling data more accessible, cost-effective, and scalable than it has ever been before. By leveraging these platforms, companies can rake in revenue from their data assets while also acquiring valuable data from other organizations without having to go through lengthy negotiations.
If your business is applying a healthy mix of improving, wrapping, and selling data, then you should be in a good spot for 2023. However, if you want to get even further ahead of the curve, your company should be sure to utilize the newest and most cutting-edge data monetization tools in the market.
Narrative’s Data Shops is the latest innovation in the world of data monetization. It is a suite of intuitive apps that provides companies with an intuitive, no-code interface allowing them to build a fully functional data shop in just a few hours. Instead of having to burn through resources by hiring data engineers, developers, salespeople, and legal and financial teams to sell your data assets, you can stand up an e-commerce data business with custom packaged products from the comfort of your office in as little as a day.
Using Data Shops will drastically decrease time to market, give you the tools you need to market your data, and provide you with access to a wide marketplace. It’s the fastest, easiest, and most cost-effective way to directly sell your valuable data to multiple buyers and start generating a significant stream of revenue in 2022.
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