Hidden in this huge amount of data is insights into consumer behavior, emerging market trends, and even future predictions. For companies, the goal is to understand this fast-growing data measure and find innovative ways to derive sustainable value from it, efficiently managing the use of cloud services at all times that support data management and analysis.
Yet according to a survey of 255 business leaders and decision makers conducted by MIT Technology Review Insights, 45% of respondents said they only use data for basic insights and decision making. This is a missed opportunity.
Channa Seneviratne, technology development and solutions executive at Telstra, an Australian telecommunications company, said: “There is a complete explosion of data sources, both inside and outside the enterprise. “As a telco, our customer base and the data that it creates, it’s a great resource that we probably can’t use as efficiently as we do.”
But that is changing as Telstra takes advantage of today’s data economy. The data economy is a global digital ecosystem where data producers and consumers — businesses and individuals — and government and municipal organizations collect, organize, and share data collected from a variety of sources. By connecting unconnected data across industry boundaries, companies can gather richer business insights, tap into undiscovered markets, serve citizens and customers alike with data-driven products and services, and monetize their data by externally sharing with key customers and suppliers. May 6
The benefits of participation
So how can companies participate in the data economy? One way is to eliminate data silos that could prevent companies from collecting compelling insights. Fortunately, more than a third (35%) of survey respondents are collaborating with partners to exchange information. This sharing of data resources is helping organizations to unlock value and achieve significant business results.
For example, 66% of shared data assets are experiencing enhanced collaboration with partners and vendors. It is easy to understand why. Data exchanges and marketplaces provide a secure and reliable platform for multiple stakeholders to collect and share information in real time.
More than half (53%) of business leaders say participation in the data economy has led them to create new business models. Using Internet-of-Things-enabled monitoring devices, for example, Telstra provides applications that transform waste, water, air, soil, and sound data into effective insights. Combining this data with micro-climate data collected from meteorological stations, the company plans to provide the Australian agricultural industry with information that can be used for a variety of activities, from predicting crop yield health to determining pesticide use. “We’re combining isolated pockets of data to create more value, insights and applications,” Seneviratne said. “We are now in a better position to monetize that data and add value.”
Telstra is not alone. According to Bozman, Kent Graziano, chief technology promoter at Snowflake, a Montana-based data cloud provider, “As the amount of information grows, many organizations realize that the data they have may actually be useful to other organizations, either within themselves. In industry or adjacent industries. ”
Graziano provides an example of a medical device manufacturer. Medical devices can track and collect important information about a patient’s blood pressure, heart rate, and insulin levels. But most manufacturers play a minimal role in influencing and shaping patient outcomes.
By partnering with healthcare companies and integrating secure tracking data with other patient and third party data, a medical device manufacturer can establish a new business model as a healthcare information provider with a direct impact on patient well-being.
“Many companies collect data and analyze the data, but trying to monetize that data has never been technically possible or economically viable for them,” Graziano said. By sharing data with key stakeholders through cloud-based platforms, such as a data exchange or marketplace, businesses can “develop a new revenue stream.”
Another advantage of the data economy is rapid innovation, according to 52% of survey respondents. Traditional companies are facing unprecedented pressure to innovate from their digital native partners and to respond quickly to customer preferences and market trends. Using data from a variety of external sources, companies can invent innovative methods for product design, service delivery and even solving world problems.
For example, credit card companies can work with healthcare companies, cell phone carriers, and e-commerce players to track their Covid-19 patients using their integrated data and provide them with care that would not be possible as a single entity. With sealed data set.
“In a digital economy, how does one invent a 200-year-old enterprise?” Sunil Senan, senior vice president and business chief, has asked Infosys, a digital services and consulting firm based in Bangalore, India, for data and analysis. “We feel that data is a big part of continuing to serve customers and finding new ways to stay relevant in a world of constraints.”
In addition to creating and running new business models, more than half (51%) of survey respondents said participating in the data economy could improve customer acquisition and retention rates অর্জন acquiring new customers and retaining existing ones যেখানে where 42% of respondents mentioned a. Increase revenue as an important business advantage.
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This content was produced by Insights, a custom content arm of MIT Technology Review. It was not written by the editorial staff of MIT Technology Review.