Big data is an organization’s newest asset, and it can be monetized. The IT Industry has only recently been able to collect, store, analyze and process the variety and volume of data available from traditional internal databases and new external data sources.
By organizing data from across sources for data consumption, an organization need only ask “What decisions would we make if we had the right information at our fingertips?”
Data that can be incorporated into an organization’s IT infrastructure includes real-time data from the Internet of Things (IoT), other unstructured data from a variety of internal sources, and structured data from nearly all aspects of daily operations. Having the ability to readily access this massive amount of data in real-time from across sources provides organizations with the ability to take quick, decisive actions to solve problems, make more informed decisions, and to gain new lines of site for company growth.
Organizations who understand and act on the value of big data have a competitive advantage. These organizations gain efficiencies and learn ways to generate new revenue streams. We refer to this as monetizing data. Monetizing data is not always about increasing revenue. Monetizing data is also about increasing ROI by decreasing investment costs.
5 Ways to Monetize Data
1) Supply Chain Optimization
A smooth flowing supply chain requires readily available access to accurate information. Big data and cloud-based technologies deliver this access, providing insights for decision-making and efficiency gains that cannot be derived from legacy systems. Gained efficiencies equate to increased ROI and impact all aspects of supply chain management. These efficiencies improve the ability to manage inventory and to meet stringent delivery deadlines, as well as the ability to track raw materials, replenish products and improve order fulfillment.
2) Predictive Analytics
Organizations can increase operational efficiencies by predicting equipment failures and necessary maintenance. Using data collected from sensors attached to equipment in the field or plant, automated alerts are triggered, warning of equipment failures and maintenance needs. These real-time data alerts decrease expenses by avoiding potential equipment failures, preventing costly downtime, and reducing asset replacement by extending the life of capital investments.
3) Yield Optimization
Reducing the costs of scrapped production runs and wasted materials increases yield optimization. Any percentage increase in manufacturing yield is a value gain. By incorporating real-time data from across platforms into the production process, delivered in sync with each stage of production, organizations can significantly improve yield and reduce waste.
4) Generate New Revenue Models
Organizations may be able to generate a new revenue model as a result of access to more accurate and inclusive data, including data related to better understanding the needs of their customers. For example, Xerox now allows customers to better manage their costs by charging by the copy and by paying for real-time maintenance in lieu of selling customers a copier system.
5) Sell Data to Companies in Another Industry
With the explosion of the IoT, an organization can collect and store data that has high value. An organization may be able to sell this pool of raw data to another company. For example, data collected by a security company via connected security system sensors is valuable to the insurance industry. The same can be true for manufacturing organizations who collect data from sensors in the field.
These are only 5 ways to monetize your data. What other lines of sight can you gain from your data?
By leveraging data science tactics, cognitive machine learning, analytic technologies, and artificial intelligence to solve business problems, an organization gains a huge competitive advantage. To begin to leverage this data is to begin to harness the power of big data.
About Jeff Eiben: Jeff Eiben is principal owner of River Point Technology, a Pittsburgh, PA-based company that offers comprehensive data assessments and a unique implementation methodology that helps companies visualize the benefits of data-driven solutions. Eiben can be reached directly at jeiben@RiverPointTechnology.com. More information is available at www.riverpointtechnology.com.