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How to Monetize Data?

September 20, 2017 by OSYB Staff

The internet has created a colossal amount of accessible data on myriads of topics; data collection abounds in all arenas.  Personally, we regularly and often times daily, gather, collect, and share information through a variety of media on topics of interest to us.    Businesses gather data in hopes of collecting relevant information to augment their business plans.  Businesses and the government spend millions of dollars on analytics and have data scientists on their payroll.

Accounting Today shares, “Most organizations search for value in their data by throwing teams of data scientists at the various stores of data collected hoping to find insights that are commercially viable. This approach typically results in endless hours of digging for insights and if any are found, they rarely see the light of day. In order for your practice’s clients to monetize data, they need a different approach — one that starts by turning the process on its head.”

Andrew Wells and Kathy Chiang of Accounting Today suggest 3 approaches of monetizing data to increase business profits:

  1. It’s about the decision

    “The decisions a business focuses on determines the analytics it will engage with, which can range from simple metrics like ROI, or more sophisticated metrics such as a propensity or churn model.”

  2. Align decision to business objectives

    “Knowing the goal is to provide analytics to support value-driving decisions, you need to make sure the client’s goals align with their overall corporate objectives.”

  3. Economic value and decision theory

    In order to monetize data, adding economic value to a client’s decisions through the use of data science and decision theory is a must.

“If you focus analytics on decision, you are already ahead of most analytical practitioners. Creating alignment from decisions to business drivers that achieve corporate objectives makes analytics actionable and relevant. Assessing the economic value of your decisions, and employing decision theory to assist the decision maker with making the best possible choice, will improve the value of your decisions. These three practices will drive up the value of your analytics and enable you to monetize your data.”

Find out more:  3 ways to help clients generate profit with analytics

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