Pathways to Data Monetization: Business Presentation

by FlevyPro Library

This is a business presentation on Pathways to Data Monetization. It is a part of a series of presentations on various business frameworks, designed in the same style of management consulting presentations (e.g. McKinsey, Bain, BCG, Deloitte, Accenture, Capgemini, IBM). Each presentation addresses a unique management topic. We are already living in the Age of Data. In fact, every organization operating today is essentially a data organization. However, only 1 in 12 are actually monetizing data to its full extent. Many organizations are already leveraging Data and Analytics to generate growth. Data Monetization is the means to achieve that growth. To achieve Data Monetization, there are 2 pathways an organization can take–one with an internal focus and the other with an external focus. Forward-thinking organizations have already embedded Data Monetization Strategies into their Digital Transformation and Strategy Development efforts. Path to Data Internal Focus The internal focus pathway centers around gaining Operational and Organizational efficiencies by leveraging data to improve our operations, productivity, and offerings. It also enables ongoing, tailored dialogue with customer by leveraging customer data. We can categorize internal initiatives into 2 1. Cost Reduction – Data Monetization efforts leverage data to increase productivity or reduce consumption and waste (either of raw materials or low-value activities). 2. Revenue Growth – For top-line growth, we leverage data to improve sales performance or reduce customer churn. Pathway to Data External Focus The external focus explores new business models enabled by sharing data with Partners and Customers. Through this, the goal is to leverage our data to create new revenue streams. Specifically, there are 3 types of new business models, progressing in levels of sophistication, value impact to customers, and, likewise, revenue 1. Data-as-a-Service (DaaS) – Data is sold to end customers or intermediaries who analyze the data for insights. 2. Insight-as-a-Service (IaaS) – This business model takes to the next level by applying advanced analytics to the data to generate actionable insights. 3. Analytics-enabled-Platform-as-a-Service (APaaS) – We apply proprietary algorithms to generate enriched data for customers via a self-service platform. The external pathway to Data Monetization offers much greater opportunities than the internally focused alternatives. Although Applied Data shows the greatest revenue potential and likewise value to customers, it also has the longest time to value. Therefore, we should carefully analyze each option and build a robust business case that balances our strategic vision, capabilities, and competition. This presentation dives deeper in to these business models. We also delve into how to actually implement a Data Monetization Strategy through a 5-phase approach in setting up a Data Factory. These pathways are not mutually exclusive. We can pursue both pathways for both Operational and Revenue improvements. The ebook also includes some slide template examples you can incorporate into your own business presentations.

42 pages, Kindle Edition

Published December 15, 2020