In order to drive value from Big Data, the data must be converted to a form or product that answers a fundamental market or asset question.
This process can be challenging and will surely involve great amounts of analysis by firms. It will be rare that companies will desire to buy data in and of itself.
Instead, it will be the case that companies have unanswered or insufficiently answered questions about markets, customers, and assets. The data on these questions will aid them in advancing their business.
Transforming Big Data into economic insights will be the focus of many firms who will monetize data. This transformation will require the creation of data products. It may be that such data products can be sold or traded to clients.
It can also be that giving away data products, derived from Big Data, will drive other related monetization strategies.
Let’s examine some of these distinct strategies for monetizing Big Data and how firms can expect to execute on these strategies.
Let’s look at four overarching data strategies and their specific monetization strategies. These four data strategies are:
(1) Keep the Data Proprietary
(2) Trade the Data to Business Partners for Shared Benefits
(3) Sell the Data Product (to a host of possible clients)
(4) Make the Data Available (and Even Free) to Many Users