Search Blog
  • Alan Fustey
  • Arthur Salzer
  • Becky Wong
  • Bert Griffin
  • Blair MacDougall
  • Blake Goldring
  • Brett Baughman
  • Camillo Lento
  • Chris Delaney
  • Chris Vermeulen
  • Christine Conway
  • Cynthia Kett
  • Darren Long
  • Desmond Jordan
  • Don Shaughnessy
  • Doug Lamb
  • Ed Olkovich
  • Ed Rempel
  • Ellen Roseman
  • Eva Sachs
  • Evelyn Jacks
  • Gail Bebee
  • Gerald Trites
  • Gordon Brock
  • Gordon Pape
  • Guy Conger
  • Guy Ward
  • Heather Phillips
  • Ian Burns
  • Ian R. Whiting
  • Ian Telfer
  • Jack Comeau
  • James Dean
  • James West
  • Jeffrey Lipton Fairmont Gloucester
  • Jim Ruta
  • Jim Yih
  • Joe White
  • John Winston
  • Jonathan Chevreau
  • Kenneth Eng
  • Kevin Ikeno
  • Larry Weltman
  • Malvin Spooner
  • Mark Borkowski
  • Marty Gunderson
  • Michael Kavanagh
  • Monty Loree
  • Nick Papapanos
  • Norma Walton
  • Paragon International Wealth Management
  • Pat Bolland
  • Patrick O’Meara
  • Paul Brent
  • Paul Mascard
  • Peter Deeb
  • Peter Lantos
  • Riaz Mamdani
  • Richard Crenian
  • Richard Warke
  • Rick Atkinson
  • Rob Peers
  • Robert Bird
  • Robert Gignac
  • Sam Albanese
  • Sam Mizrahi
  • Sean Cooper
  • Stephane Ruah
  • Steve Nyvik
  • Steve Selengut
  • Tammy Johnston
  • Terry Cutler
  • Trade With Kavan
  • Trevor Parry
  • Trindent Consulting
  • Wayne Wile
  • Categories
    May 2013
    M T W T F S S
    « Apr   Jun »


    Data Monetization

    Gerald Trites, FCA, CPA

    The full realization of value from data has become a standard of modern business. Since the big data revolution began, the pressure to realize maximum value from the data available for business purposes has grown to the point that data is now monetized with increasing frequency. One credible source says that 30% of business will have monetized their data within the net four years. But numerous companies are already doing it.

    Data monetization means actually converting data into money, through its sale, or through its exchange for other monetized assets, or its exchange for other valuable data.

    One technique being used is to make data available on a website or through social media to selected audiences, who can then purchase the data or else make an exchange offer. This is a form of data market.

    For example, suppliers might be interested in data about customer reactions to the products they are producing, or about issues that have come up among customers about the components they are selling to the company.  For the supplier, they might make similar arrangements with other of their own customers as well, which would enable them to create a data market, which could then be made available to all their customers in exchange for the data from the individual customers. This type of data market is a growing phenomenon.

    The monetization of data through data markets also facilitates the valuation of the data. The fundamental value for these exchanges is often established through real time analytics of data coming in and being used for revenue earning purposes. Through the analytics, the incremental value of the data can be established.

    Establishing the value of the data is also useful for determining the cost-benefit ratios of utilizing data in certain circumstances. For example, data on markets in certain geographical areas might be acquired for purposes of identifying market segmentation opportunities. Then after implementation, the actual benefit derived from the initiatives can be matched against the cost of the data, and the value of the data thereby verified or modified.

    Without data monetization, the growth in the collection and use of data, particularly in the “big data” era, could run unchecked, and result in the generation of mounds of useless and marginal data. However, the monetization of the data provides a viable economic framework for making decisions about the data to be collected, and the use to which it should be put. It also opens the opportunity to make money directly on the sale of the data itself – a new and valuable commodity.

    The MONEY® Network