Capitalizing on the data economy

Hidden within these large volumes of data are insights into consumer behavior, emerging market trends, as well as future predictors. For organizations, the goal is to make sense of this rapidly growing amount of data and find innovative ways to extract sustainable value by effectively managing the consumption of cloud services that support data management and analysis.

However, according to a survey of 255 business leaders and decision makers conducted by MIT Technology Review Insights, 45% of respondents say they use data only for basic knowledge and decision-making. That is a missed opportunity.

“There is a complete explosion of data sources both inside and outside the company,” says Channa Seneviratne, director of technology development and solutions at Telstra, an Australian telecommunications company. “As a telecom company, our customer base, and the data it generates, is a wonderful asset that we probably can’t use as effectively as we can.”

But that is changing as Telstra takes advantage of the current data economy. The data economy is a global digital ecosystem in which data producers and consumers — businesses and individuals — and government and municipal agencies collect, organize, and share accumulated data from a variety of sources. By connecting unrelated data across industry boundaries, organizations can gain richer views of the business, tap into unexplored markets, serve citizens and consumers with data-driven products and services, and make money by sharing their data away with major customers and suppliers.

Advantages of participation

So how can organizations participate in the data economy? One way is to eliminate data silos that can prevent companies from gathering credible information. Fortunately, more than a third of those surveyed (35%) are collaborating with partners to exchange data. This sharing of data assets helps organizations unlock value and achieve significant business results.

For example, 66% of those who share data assets are improving their collaboration with partners and vendors. It’s easy to understand why. Data exchanges and markets provide a secure and reliable platform for real-time information gathering and sharing of multiple stakeholders.

More than half of employers (53%) said that participation in the data economy has led to the creation of new business models. For example, using Internet-enabled monitoring devices, Telstra offers applications that turn waste, water, air, soil and noise data into equitable information. By combining these data with microclimate 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 the health of crop yields to determining pesticide use. “We are pooling isolated data pockets to create more value, insights and applications,” says Seneviratn. “We are now in a better position to make that data to make money and add value.”

Telstra is not alone. Kent Graziano, chief technology evangelist at Snowflake, a data cloud provider based in Bozeman, Montana, said, “As the volume of data grows, many organizations are realizing that the data they have can be useful to other organizations, both within themselves. industry or adjacent industries. ‘

Graziano provides an example of a medical device manufacturer. Medical devices can track and collect critical information about a patient’s blood pressure, heart rate, and insulin levels. But most manufacturers play a minimal role in influencing and shaping patient outcomes.

By collaborating with healthcare organizations and securely integrating follow-up data with patient and third-party data, the medical device manufacturer can establish a new business model as a provider of health care information that will have a direct impact on patient well-being.

“Many organizations collect and analyze data, but it has never been technically feasible and economically efficient to try to make money from that data,” says Graziano. By sharing data with key stakeholders through cloud-based platforms, such as data exchange or marketing, companies can “develop a new revenue stream”.

Another benefit of the data economy is faster innovation, according to 52% of survey respondents. Traditional companies are under unprecedented pressure from their digital peers to innovate and respond quickly to customer preferences and market trends. Leveraging data from a variety of external sources, organizations can find innovative approaches to designing products, providing services, and even solving world problems.

For example, credit card companies can work with healthcare organizations, mobile phone carriers and e-commerce players to use their integrated data to monitor covid-19 patients and provide care in a way that would not be possible as a single entity. with silicate data sets.

“In a digital economy, how does a 200-year-old company innovate?” asks Sunil Senan, head of data and analytics for Infosys, a digital services and consulting firm based in Bangalore, India. “We believe that data is a big part of finding new ways to continue serving customers and remain relevant in the world of disruptions.”

In addition to creating new business models and driving innovation, more than half of respondents (51%) can participate in the data economy by improving customer acquisition and retention rates — gaining new customers and retaining existing ones — according to 42% of respondents. increase revenue as an important business benefit.

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This content is produced by Insights, a custom content from the MIT Technology Review. The editorial staff of the MIT Technology Review did not write.