It seems that every organization is seeking ways to harness the power of ‘big data and analytics’ to increase the efficiency/efficacy of their operations and to deepen their relationships with customers. However, as previously documented ( Aligning Business Model & Culture to Maximize the Analytics Opportunity), relatively few organizations have focused on developing new revenue streams through services which are based on data and analytics.
Crossing the Chasm
Over the past few months, The Insight Group has been interviewing senior executives from multiple forward-looking companies who are crossing the chasm to monetizing data and analytics through new services and solutions. They provide compelling examples of innovative new services such as: cultural analysis to predict safety performance, cognitive analytics to assess the impact of weather on business, location intelligence to inform critical business decisions, and technology-informed services to optimize advanced manufacturing. These organizations are driving top-line revenue growth, expanding their addressable markets, and creating new value for their customers.
Not surprisingly, culture tops the list, followed closely by the competition to garner the necessary investments in infrastructure and skills. While the challenge of acquiring and retaining skills was anticipated, the breadth of skills—far beyond data scientists to marketing, finance, and sales&was not. Just as services require a substantively different business model and go-to-market approach than products, embarking on a strategy to monetize data and analytics will demand a significant pivot for many organizations.
Fast Forward
The top priority for getting started was to perform a market assessment to understand what data has value— and to whom.
Having said that, almost every interviewee cited the risk of ‘analysis paralysis’ and the need to quickly launch and validate new offerings via a First of a Kind (FOAK) approach. Crafting a business model specific to data and analytics rounded out the top three actions.
Next Steps
The Insight Group is partnering with Arizona State University’s Center for Services Leadership to further explore this topic. We have created a short quantitative survey and welcome your participation:
Monetizing Data & Analytics Survey.
In addition, we will be continuing our qualitative interviews. If you are interested in sharing your experiences and insights in this area, please contact: research@insight-group.com
