All businesses are technology companies in the age of digital transformation, or so the saying goes. It’s also true that many are becoming information businesses as the amount and value of data they produce and consume continues to increase. In fact, business leaders and CIOs will find themselves not only missing opportunities but also at a competitive disadvantage if they don’t leverage data assets before markets are crowded with competitors.
Below are factors for CIOs and business leaders to keep in mind when their companies are considering data monetization.
1) Data-driven customer experiences are the new currency of business.
High-quality customer experiences are enormously data-intensive, but they are a prerequisite for success in the digital era.
2) Customers expect smarter products that learn, improve, and solve a broader array of problems.
Customers want and need help in getting more utility and value out of investments that they have already made. Moreover, companies already have ways to capture much of this data. It will be important to redistribute it in a value-added fashion.
3) Digital transformation fuels demand data across industries and ecosystems.
Start-ups and traditional businesses are scrambling to leverage data assets and gain an advantage as early entrants into markets and ecosystems. Additionally, there must be a quick response or participation from business leaders to avoid being marginalized or shut out of the best opportunities.
4) Digital transformation is exponentially increasing the volume of data exhaust.
Perhaps the easiest reason to pursue data monetization is simply that the opportunity is there. As products and devices gain intelligence and can both produce and act on data, the result will be an increase in both the volume and value of available data.
5) Enterprises, and their CIOs, feel pressure to convert data management from cost center to revenue source.
CIOs are critical to success in data monetization as they are steeped in knowledge and experience in all aspects of data management. Furthermore, it would be difficult, if not impossible, to mount initiatives in many key areas without solid support from IT organizations.
Whether or not you will be monetizing your data, you’ll also need to … Transform Your Data
Learn about a 10-step process that will have you using data in new ways, bringing more value to your enterprise with this on-demand web conference, The First 100 Days of a Data Transformation Initiative.
Content from this blog comes from the IDC report, IDC PlanScape: Data Monetization, Doc #US43627918 on idc.com.