According to Barbara H. Wixom and Jeanne W. Ross, principal
research scientists at the MIT Center for Information Systems Research in
Cambridge, Massachusetts, businesses can monetize their data in three
ways. Businesses can use their data to improve internal processes, use it
to sell core products and services, and sell the information to other
businesses. Since companies have the ability to measure analytics internally
and externally, they are able to apply the data to their policies, procedures,
and products to turn a profit. According to Information
Week, “Companies that leverage data to drive the performance of their
organization’s decisions are winning at a faster rate than their competition.” Basically,
it is crucial for companies to use and monetize their data to stay competitive
in the market. Let’s explore the ways companies are doing this.
Improving Internal
Processes
The effectiveness of an internal team can influence an
entire company. Do policies and procedures have employees focusing too much on
the process and not enough on the actual work? Recording internal data can help
companies take a look at their internal processes and see what is what is
working and what is inefficient. An example of companies using big data to
improve processes is call recording for help centers. When you call a company
with a question you often hear that the call is being recorded for quality
purposes. According to Open
Source Recording, a call center employee provides 95% of a company’s value.
Being able to listen to calls and use them to train employees is a fantastic
investment for companies will call centers, especially when the cost of storing
data is becoming negligible. Maybe analyzing calls can help companies reduce
the time the customer is on the phone. It is possible that analyzing call data
can help companies discover why people call and can help improve the dial menu.
As big data gets even bigger, companies will find even more ways to use their
data to improve their processes.
Improve/Sell Products
& Services
Gathering Data on company products and services is another
way companies can monetize their data. Discovering the top customer wants and
needs can help a brand take their product to the next level. For example, if an
ecommerce website sees an uptick in certain products being bought during
certain timeframes, the company can make note and be sure to keep up with
supply during that time of year. Another way companies can use data to improve
products is to look at comments and site reviews on Amazon and social media. If
a brand analyzes their reviews and social media comments, they may see patterns
and trends, like consumers saying “this product is okay, but it would be really
great if it had x.” Brands can use this data to add those features to their
products in the future.
Selling Data
So many brands underestimate the value of their user data. Selling
data is an efficient way to make a profit. Companies will buy all types of
information, from user demographics to what type of device a user is accessing
a website from. According to the Harvard
Business Review, one of the best ways to get value from your big data is to
sell it. The Harvard Business Review describes how “Data can be the ‘missing
link’ for a company that has never had access to the side of your customers
that only you can see.” While brands are busy using their websites for
ecommerce, content management, etc. a useful byproduct of user information is
being cultivated on the back end. Brands should use this data and take
advantage of the value their data has.
As big data changes over time, more ways to monetize will
definitely surface. Right now the three big ways companies can monetize their
data is by using it to improve processes, using it to improve products and
services, and selling it to other interested companies.
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