Capitalizing on the data economy

Hidden within these numerous volumes of data are perceptions of consumer behavior, evolving market trends, even predictions of the future. For organizations, the goal is to understand this rapid increase in the amount of data and find new ways to derive sustainable value from it, while efficiently managing the consumption of cloud services that support management and data analysis.

However, according to a survey of 255 business leaders and decision makers conducted by MIT Technology Review Insights, 45% of respondents said they use the data only for basic insights and decision making. That’s a missed opportunity.

“There’s been a complete explosion of data sources inside and outside the business,” said Channa Seneviratne, technology development and solutions executive at Telstra, an Australian telecommunications company. “As a telco, our customer base, and the data it generates, is a unique asset that we are unlikely to use as effectively as we could.”

But that’s changing as Telstra takes advantage of today’s data economy. The data economy is the global digital ecosystem in which data producers and consumers — businesses and individuals — and government agencies and municipalities gather, organize, and share collected data from a variety of sources. source. By connecting unconnected data across industry boundaries, organizations can glean more business ideas, tap into unexplored markets, serve citizens and consumers alike. data-driven products and services, and monetize their data by sharing it externally with key customers and suppliers.

The benefits of participation

So how can organizations participate in the data economy? One way is to eliminate data silos that prevent companies from garnering compelling insights. Fortunately, more than a third (35%) of survey respondents collaborated with colleagues to exchange data. This sharing of data assets helps organizations unlock value and achieve significant business outcomes.

For example, 66% of data asset shareholders have experienced improved collaboration with partners and vendors. It is easy to understand why. Data exchanges and markets provide many stakeholders with a secure and reliable platform for collecting and sharing information in real time.

More than half (53%) of business leaders say that participating in the data economy has led them to create new business models. For example, using an internet-of-things-enabled monitoring device, Telstra delivers applications that convert waste, water, air, soil, and noise data into actionable insights. By combining this data with micro-climate data collected from weather stations, the company plans to provide the Australian agricultural industry with information that can be used for a variety of activities, from predicting crop health to harvest until the use of the pesticide is determined. “We combine isolated data pockets to generate more value, insights, and applications,” Seneviratne said. “We are now in a better position to monetize that data and add value.”

Telstra is not alone. According to Kent Graziano, chief technology evangelist at Snowflake, a cloud data provider based in Bozeman, Montana, “As the amount of data grows, many organizations are realizing that the data they have can be useful to other organizations, either in their own industry or in neighboring industries. ”

Graziano offers the example of a medical device manufacturer. Medical devices can track and gather critical information about a patient’s blood pressure, heart rate, and insulin levels. But most manufacturers have little role to play in influencing and shaping patient outcomes.

By partnering with healthcare organizations and securely integrating tracking data with other patient and third party data, a medical device manufacturer can build a new business model as a provider of health care information that has a direct impact on patient well-being.

“A lot of organizations collect data and analyze the data but it’s not technically and economically efficient for them to try to monetize that data,” Graziano said. By sharing data with key stakeholders through cloud-based platforms, such as data exchange or marketplace, businesses can “create a new revenue stream.”

Another benefit of the data economy is faster innovation, according to 52% of survey respondents. Traditional companies face unprecedented pressure from their native digital counterparts to adapt and respond quickly to changing customer preferences and market trends. By using data from a variety of external sources, organizations can discover new ways to design products, deliver services — and even solve global problems.

For example, credit card companies may partner with healthcare organizations, cell phone carriers, and e-commerce players to use their combined data to track covid-19 patients and give them care in ways that are not possible as an entity. with a siled data set.

“In a digital economy, how does a 200-year business change?” asked Sunil Senan, senior vice president and business head for data and analytics at Infosys, a digital services and consulting company, based in Bengaluru, India. “We feel that data is a big part of continuing to serve customers and finding new ways to stay relevant in a world with disruptions.”

In addition to creating new business models and pushing for innovation, more than half (51%) of survey respondents said participating in a data economy could boost rates. in customer acquisition and retention — acquiring new customers and retaining new ones — as 42% of respondents mentioned. additional revenue as an important business benefit.

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This article was created by Insights, the standard MIT Technology Review article. It was not written by the editorial staff of the MIT Technology Review.

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