Data monetization is the process of using data to increase revenue. The highest-performing and fastest-growing companies have adopted data monetization and made it an important part of their strategy, according to McKinsey & Co.
Direct data monetization involves selling direct access to your data to third parties. You can sell it in raw form, or you can sell it in a form that’s already transformed into analysis and insights. Typical examples may be contact lists of potential business prospects or findings that impact on buyers’ industries and businesses.
Indirect data monetization is where things get interesting. Firstly, there’s data-based optimization. This involves analyzing your data to reveal insights that can improve your organization’s business performance. Data can identify how to reach customers and understand customer behavior so you can drive your sales. Data can also highlight where and how to save costs, avoid risk and streamline operations.
Secondly, there are data-driven business models, where you use your data to discover new business opportunities and customers. You can embed analytics into your products or services, providing advantages for you and your customers. Customers benefit from direct access to usage analytics and other data generated by each product they already use. You benefit from offering this as a value add-on or as a new tier of service, encouraging customer loyalty. In turn, you get a better insight into how your customers are using your products.
Without the right data monetization strategies in place, you risk missing critical insights that could improve your business. With the necessary strategies in place, you are well equipped to sharpen your competitive edge.
Here’s an overview of the benefits of data monetization, the key data monetization methods, and what attributes you should look for in a BI and analytics platform, to support the best data monetization tool.
Why data monetization is essential for your organization.
Good data monetization ensures that you get the most value from your data by maximizing profits, reducing costs, and optimizing opportunities for your organization, your customers and your partners. Data monetization:
As our world has become increasingly data-driven, so the ways of monetizing data have developed. The best methods provide you with the capacity and flexibility to get the most out of Big Data from the greatest variety of sources. As your organization grows, you need to decide which monetization approach fits best with your larger data strategy. It’s therefore important to consider the main methods, establish which of them are most suited to your current and future requirements, and which BI and analytics platform can provide you with the data monetization tools that are right for your needs.
This is the simplest, most direct data monetization method. Data is sold directly to customers or intermediates. The data is either raw, aggregated or anonymized and the buyers mine the data for insights. Buyers don’t benefit from receiving insights — they derive those for themselves. Nor do they benefit from advanced analytics.
This involves combining internal and external data sources and applying analytics to provide insights. Either the insights can be sold directly or provided in formats such as analytics-enabled apps that provide updated data. The insights are limited to specific datasets or contexts that the buyer has purchased.
This is a more flexible type of data monetization that provides much more value to customers. Analytics and BI platform is installed and implemented to provide customers with highly versatile, scalable data analytics in real-time. It is available both on-premises and in the Cloud, compatible with all cloud-based data warehouses and the widest array of data formats, so you can use data from any source and any format. Expert set-up and support are needed to get the full benefit from cloud-based tools.
This is the most advanced and exciting way of monetizing data that provides the most value to customers. Simply put, embedded analytics means adding features normally associated with BI software – such as dashboard reporting, data visualization, and analytics tools – to existing applications. Product teams can build and scale custom actionable analytic apps and seamlessly integrate them into other applications, opening up new revenue streams and providing a powerful competitive advantage. Sisense is the only embedded analytics platform built from the ground up to provide both agility and performance with scale. It accelerates the time to market, lowers TCO, and creates an embedded analytics solution that’s fully customized for your specific needs.
While companies and organizations share many features and requirements, each has its own specific characteristics and needs. So, when you’re considering which BI and analytics platform enables data monetization that best meets your requirements, bear in mind the following considerations:
The amount of data you need to manage, and the number of connected devices generating data, is rapidly growing all the time, so it’s vital that the data monetization capability in your BI and analytics platform has the capacity not only to handle your current data, but a massive increase in data that you can expect in the future.
The more data there is, the more formats it can have. Make sure that your data monetization supports a wide range of formats. In additional to basic file types like Excel, delimited text files, XML, JSON, EBCDIC and the like, ensure that it can handle other common formats like SQL Server, Sybase, Oracle and DB2. And it’s increasingly important that your choice of monetization tool can also handle enterprise software like SAP, SAS, Marketo and others, plus data from cloud services and the leading cloud-based data warehouses.
As your organization grows and changes, you should be sure that you can scale up your data monetization capability and that it can grow with you. It’s important that your chosen platform has the power and technology for scaling up, in terms of being able to handle and map larger quantities and increasing varieties of data, without extra infrastructure.
The data monetization functions in your BI and analytics platform should also be adept at coping with other changes that your organization might experience to meet changing demands quickly. From granular customization of functionality to adapting to new requirements and driving shorter times-to-insights, it should ensure performance regardless of the challenges ahead.
Ideally, your choice of platform should meet your specific requirements, so consider how well and how easily it can be customized. Make sure it’s purpose-built for developers so they can reduce development time, and can embed analytics everywhere so that you can integrate analytics into your products and services. Sisense’s technology can be used for terabyte-scale data and analytics, and to serve multiple users concurrently. We harness the true processing potential of today’s 64-bit computer, multi-core CPUs and parallelization capabilities, enabling a single commodity server to deliver the same data processing power as much larger clusters.
To maximize the value that you get from your data and your BI platform, it should empower more users across your organization to analyze, visualize and act on business data. Can it automate repetitive tasks? Does it offer coding-free drag and drop functionality that enables non- technical users to transform data easily? Plus, your platform should enable AI throughout so that it learns from your users and data to solve problems intuitively.
See how the leading vendors of data monetization tools and analytics stack up in the most respected industry analyst reports:
Value delivered, early innovation, and customer success are what make us the leading Visionary in the Magic Quadrant.
Sisense earned top rankings from customers for ease of use, ease of doing business with and quality of support.
“Overall Leader” for customer experience and credibility with high scores for value & integrity put us consistently above the rest.
There’s a lot to consider when choosing a data monetization tool, but a lot to be gained by making the right decision. So, in addition to the overview you’ve seen so far, look at these comparisons between Sisense and the other leading data monetization tools, to see why you should choose Sisense:
Developers, cloud data teams, and analysts from some of the world’s leading companies and global enterprises use the power of Sisense to effortlessly combine complex data from a variety of sources and build analytics apps that deliver insights to everyone in the organization.
These power users, plus business users from a wide range of functions, are what we identify as the builders of your strategy. Sisense gives them the power to identify, analyze, and visualize the data that influence the course of your organization, with powerful decision-making capabilities that are potentially game-changing.
The Sisense BI and analytics platform dramatically accelerates the time it takes to build, embed, and deploy intelligent analytics apps that unleash user creativity and engagement. Whether it’s interactive dashboards, self-service analytics, or white-labeled BI apps, Sisense delivers the industry’s lowest TCO at scale, all on a hybrid-cloud platform designed to leverage all your data together, no matter where it is.
Sisense empowers your users to make decisions and challenge assumptions by equipping them with the insights they need, when and where they need them. We help everyone in your organization drive change and build the business using innovations in AI and ML that deliver BI with more impact than you ever thought possible.
It’s not just what we do, it’s how we do it. It takes more than patented technology to make your business successful. You need the product to work in your network, with your requirements, under your constraints. And that’s when our customer-centric culture kicks in. We work with you on every installation, every upgrade, and every project to make sure you feel the value of your BI platform in your business. Sisense scores consistently above the overall sample and is the leader in terms of customer experience and vendor credibility.