Bosch – A guide to data monetization
Today we are generating more and more data, exactly 2.5 quintillion bytes each day. But how to utilize the data? In this guide to data monetization you will get a good overview of the topic in general and a deep dive into the two categories of monetizing data: direct and indirect monetization.
Apparently, data is called the “new oil” in terms of a resource. And I really like the comparison.
“Like the oil industry, there will be those who make money through the raw materials and those that add value along the many steps in the value chain.”
Zach Gemignani, CEO Juice Analytics
This shows very nicely that there is not only one way to generate value by selling resources, but also to apply value-adding steps to make this resource even more valuable. By this you see that you’ve got different approaches to monetize your data and thus have the possibility to make a positive and measurable impact on your business revenue. Essential for direct data monetization is matchmaking between the right stakeholders.
According to Gartner, there are two main approaches to profit from your data:
- Direct data monetization: You provide direct access to your data (e.g. data sets or APIs) in exchange for money or cryptocurrencies (e.g. $$$ or IOTA)
- Indirect data monetization: You use insights to improve your business, create complete new services and business models based on the data you get from your products or services
But how you want to or will monetize your (and other´s) data really depends on how valuable your data is for your business in a strategic context. And also other guidelines, such as legal or data privacy policies will have an impact on your strategy, whether it is about direct or indirect data monetization.