How will Big Data companies monetize data in 2018?
In today’s data driven economy, Data is a strategic asset to a company and data monetization is prime focus of many companies. Let’s see how data monetization will be achieved in 2018.
In the modern day, the focus of most of the companies has shifted from optimizing the cost of the products they deliver to delivering an elevated customer experience through the products. Providing a high customer experience has become vital to build loyalty and also to limit the customer churn. The entire advent of the Big Data along with its learning applications has made the companies realize that data is the most strategic asset for the development of their businesses. Talking about the monetization of Big Data, the companies are looking to obtain calculated benefits of reduced costs within the extant business model. The Big Data, which usually is the proprietary data and behavioral data of customers are gathered during the customer interaction. Therefore, this data is neither public data nor the private data but is very much legal to be used to ameliorate the business combined with website activities, Social Media monitoring, and engagement.
Companies these days are occupied with anomalous amounts of data including network data, customer profiles, device data, location data, usage patterns, clickstream data, app data and a lot more. Given the abundance right at the fingertip, one of the International money transfer company I know is changing the finance from its core through data and receiving gold mines every day where they can capitalize on the sets by breaking them down, according to the problem areas. Data Monetization has been a process of spawning revenue from the available data sources by instituting the capture, discovery, analysis, storage, mobilizing and dissemination of the Big Data. Through monetization, one can leverage the data, associated with business operations with their services and products.
By the end of the year 2017, the revenue growth from the products that are information-based will double the other’s portfolio, says IDC. The value adding content and the raw data will be sold and bought by bilateral transactions or via markets. The companies will begin innovative methods to value the data as the world starts creating 180 trillion gigabytes of data in 2025, which was only 10 trillion gigabytes in 2015. The cloud vendors will compete with conventional analytics providers, and with immense growth in the capabilities of cloud platforms, the users will start leveraging large vendors predominantly for the 2017 analytical software, says IIA (International Institute for Analytics). IDC also predicts that by the year 2018, new pricing models for the analytics workloads will be 5 times higher in spending cloud-based analytical solutions.
Most of the executives think that role of a Chief Data Officer is Big Data is defensive and is entirely focused on consent with regulatory requirements. But with the enlargement of Big Data in 2018, the officers will build a data culture driven by innovative initiatives. The proliferation of data translators will also exceed based on the requirements. The MGI (McKinsey Global Institute) quantified the shortage of the Data Scientists with deeper skills in U.S to be around 200,000 or a little less, by 2018. Now, they also have forecasted that millions of people will be needed to serve as translators for the monetization of big data. Even if it seems to be the domain experts with the understanding and knowledge of the business given the engagement, a data translator has to obtain interpersonal skills and obtain adequate knowledge about the data in order to get the language of the domain.
Most of the companies today are vigorously investing in the Big Data in spite knowing that data could become their biggest threat, says IoT technology debt study by Paul Reang. Simultaneously, the growing technology has created a stir in the data industry creating impactful measures like loyalty management, churn reduction, customer retention, customer acquisition, generating new streams, accelerated troubleshooting, network optimization, and risk management, etc. The industry practices of 2018 will be mostly focused on three important aspects, targeting, innovating and optimizing. By targeting more products and marketing efforts, using the big data analytics; one can personalize the user experience, increase the loyalty in a person, aligning themselves to the needs of the customer. The companies will start using the network data, and the IT data in order to inject the data in the operational efficiencies to improve the effectiveness of customer management.
Upon knowing, inventing and modulating how the optimization of networks, companies can identify new areas in order to invest in new capacities and when it is the right time to make boosting offers that can improve the business, they can launch the catering products, more efficiently. Over that, monetization of the Big Data will be done to develop new innovating strategies where the potential of the business is unlocked enabling new models in place. That being said, Big Data as a goldmine has the capability to affect the whole service chain, making it an integrated and comprehensive way of usage. With all these advancements, the companies can swiftly become more than the basic service and product providers and become innovative and efficient providers, indeed. Also, because of the interesting interest in AI, there will also be many new AI tools developed to collect and analyze the Big Data creating more roles and responsibilities by 2018.
Bio: Yash Mehta is an Internationally recognized Internet of Things, Big Data Science and M2M expert. He has been recognized by IDG as an Influencer in Big Data and IoT. He co-founded TuTuApp , founded an IoT software and blog named IoT Worm. You can follow him on LinkedIn, Twitter and on his personal blog yashmehta.
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