What is a Data Exchange?
by Brenna Dilger, on October 13, 2021
The new data economy is a feast of information and organizations are not only hungry for data; they are serving it up too. Data exchanges are creating a data boom that is generating revenue streams for data providers and supplying a smorgasbord of accessible data to data consumers. These data marketplaces have become key players in the data game and it is indisputable that companies must understand how to take advantage of these networks in order to maximize their own success.
What Is a Data Exchange?
Data exchanges are marketplaces stocked with data assets where data providers and data consumers are able to connect and exchange data in a seamless and secure manner. These exchanges simplify the acquisition and integration of data by minimizing traditional barriers and creating a frictionless experience for their participants. A quality data exchange provides those in the data economy with transparency, trust, quality, security, and integration.
Why are companies using data exchanges?
A quality data exchange is useful because companies will always need more than just first-party data. They must look for data outside of their own organization in order to maximize clarity and insight. Because of this, there will always be a steady supply of valuable data and an insatiable demand for it within data exchanges.
For data consumers, data exchanges are a treasure trove that can’t be overlooked. With access to an endless supply of data points, companies can use data exchanges to acquire data that will fill in gaps of information that only second-party and third-party data can. For data distributors, data exchanges are an untapped revenue source. Companies can take the data they’ve collected and spin it into gold. Organizations that properly utilize a data exchange have a huge advantage; they gain access to multiple sources of accurate and current information while simultaneously monetizing their own data assets.
What are the benefits of using a data exchange?
They simplify how companies buy and sell data
Sharing data between organizations has been a traditionally difficult endeavor. Many companies have endured the painstaking process of finding a suitable source of data, evaluating that data, negotiating a price for that data, and integrating that data with their internal systems. It’s a time-consuming undertaking that generally does not go smoothly and is often not worth the effort. Data exchanges make it easy to purchase data directly from several suppliers at once without having to go through the old-fashioned steps.
They provide more accurate insight
The wealth of data that is shared within data exchanges gives companies better clarity when it comes to making business decisions and strategizing. With the data available to them in data exchanges, organizations can enrich their statistical and machine learning models, enhance analyses and forecasts, create more in-depth profiles of their customers, and much more.
They give companies control
Data exchanges give companies the power to purchase and monetize data on their own terms. By using exciting new technology and providing an easily accessible platform, data exchanges eliminate the need to use middlemen which would drain valuable time and resources.
They facilitate the commercialization of data
Data exchanges create a two-way data ecosystem that is highly valuable to both data originators and data acquirers. The data that saturates these exchanges provides value to a brand’s suppliers, clients, and partners. Enterprises have access to an entire network of data potential and at the same time are able to generate new streams of revenue through data monetization.
What are the disadvantages of using a data exchange?
There's not much ability to differentiate yourself as a seller
You may not have much traction on these platforms and might not generate a large amount of revenue since you don’t have much opportunity to differentiate your business and your data products from other data distributors within the exchange you are participating in. Every data seller looks and operates the same on these platforms, which can cause your data to be hard to find and, consequently, hard to sell.
Some technical expertise is required
These marketplaces can also be difficult to navigate and utilize properly without the technical expertise needed to package and productize your organization’s data. If you don't have some technical expertise, using these data exchanges might not be intuitive and could get frustrating quickly.
Limited ability to filter and customize
Data exchanges also often don't offer the flexibility of picking and choosing exactly the data points you want to buy or sell. There are many limitations on your ability to create custom data products or buy precise data based on your company's particular priorities and preferences.
There is a better option: a data collaboration platform
A data collaboration platform is software that makes buying and selling quality data assets faster and easier than ever. Data collaboration platforms like Narrative provide a marketplace in which to sell or buy data, but we also provide the tools you need in order to filter and buy the exact data you want and create a branded data business with custom data products.
Data providers can package, publish, and distribute their own data with just a few clicks and data consumers can buy and integrate only the relevant data sets they need (and none that they don't need). Data collaboration platforms offer the customization and differentiating power that data exchanges can't. They also simplify the process to point-and-click workflows that anybody, even someone without any technical expertise, could master. It’s Shopify for data!
Why is Narrative the #1 data collaboration platform?
Guaranteed quality data
Narrative focuses on providing quality data, ensuring bots are eliminated and data buyers know exactly where their data is coming from. Because companies have access to fully transparent sources, they can be confident that the data they purchase is reliable and compliant.
Reduce wasted expenses
Narrative offers highly customizable filtering options that enable you to buy only the exact observations you need, and none that you don’t. You won’t encounter vaguely defined segments of questionable quality; instead, Narrative allows you to run truth set analyses before you buy to ensure the data you’re purchasing meets your standards for accuracy and precision. Additionally, automatic deduplication ensures you never pay for the same observation twice.
While every company collects data differently, making that data difficult to “translate” and share with another company that may interpret data very differently, Narrative makes it possible to share any and all data without having to hire a data engineer. Narrative’s data collaboration platform uses a technology called Rosetta Stone, which effectively translates all of your data to be easily understood and usable to anyone that it is shared with. This makes it possible for any enterprise to simply upload their data onto the platform and have it available to the buyers seeking that data within hours.
Easily monetize your data
Anyone can create a fully functional data business in as little as a day by utilizing the tools Narrative provides, even if they don’t have coding or design experience. Instead of having to burn through resources by hiring data engineers, developers, salespeople, and legal and financial teams, you can take control and set up your own data business with our intuitive tools.
Narrative is the fastest and easiest way to exchange data
Narrative’s data collaboration platform makes it easy to buy and sell data. Data suppliers can ingest, package, and deliver their data, and data consumers can discover and acquire valuable data sets that can be delivered to any preferred endpoint. You have access to billions of data points and can also contribute your own to start generating new revenue! Speak to a member of our sales team to learn more or access the Narrative Data Streams Marketplace today!