Traditionally, the expertise sought in the Non-Executive and Senior Business Advisory team is still mostly based around traditional skills of Finance, Marketing, Regulatory and Legal, SME, and Organisational Development.
The value of data skills and its power to open up new businesses is still not fully understood and appreciated at the most senior level. While ‘Data Monetization’ is a term used often, it is not well comprehended. As a business advisory team, every business small or large should have a senior data person in their decision making core team.
Why? Simple. Data provides you with commercial rewards.
Examples of data monetization
Take Uber for example — have you ever thought of Uber making money out of data? If you haven’t, well, it does. Uber’s current business model relies on Google Maps’ data, and without this data (which interestingly is not even owned by Uber), Uber would not have thrived in its current form. Data directly defines Uber’s business model.
Moving away from transportation and putting a focus on personal health and wellness, let’s talk about Fitbit — another classic example of data monetization.
Fitbit tracks all your health indicators and while partnering with various providers to commercialise its business. For example, if you are consistently showing up as “stressed” on the Fitbit app, you are more likely tempted to subscribe to Headspace (a wellness and meditation app).
Try selling Headspace to a non-Fitbit user and there’s a small chance that they soul buy it; but try selling it to the same user whose Fitbit says he is stressed, and you’re more likely to get instant traction. Ergo, an optimised case of data monetization through partnerships.
What about Google? Did we know that Google had no tangible commercial model until its Pay Per Click advertising kicked in? Data is what makes Google most of its money (approximately 85-90% of its total revenue).
It is the data we search in Google, which is used for bidding and auctioning in searches, that turns it into the multibillion-dollar corporation it is today. Just another great example of how data can be monetized. Google as a search engine has no commercial value, but Google as a data repository firm has a massive one.
Grow your business using data
Looking at your business from a data lens is the fundamental skill missing on most boards and this is where Sameer can help. Monetizing data requires ripping apart the operating model of the business and looking at things very differently, that is, applying the data lens.
In his career, Sameer has used data monetization techniques to open up new revenue streams to add B2C propositions to predominantly B2B businesses. This was done to develop entirely new business models that pave the way for new offerings and new ways to optimised data to establish new partnerships.
Looking at things from a data lens can change the way businesses are done. Not only does it have the potential to disrupt markets, but it also marks the beginning of an overall change the nature of competition, making it data optimisation and knowledge a competent addition to the core skills. Senior data skills are absolutely vital for companies to alter and challenge their corporate strategies and direction.
However, getting data to work for the benefit of monetization, takes time and energy. Companies need to lay the foundations for it, which is where Sameer can come in to help these firms with data strategy.
Do you have a Data Expert on your Board?
Learning about the different ways to strategise using data would allow companies to find a better direction on building data foundations (i.e. design, architecture, and analytics), which will help them build the business case and technical platform they need to monetize data effectively. Sameer would be able to help set up the data ecosystem that would allow data partnerships to monetize your data.
Let’s transform your business through data; and through data, we will re-inforce your business model and open up new revenue streams. Get your data advisor in the Boardroom.