Businesses today are increasingly turning their data and software into products to boost their sales and create new ways to make money. According to a survey by Deloitte in 2023, more than one-third (36%) of top business executives have accepted that their organisations are already making money by selling data, technology or tech-related services. Another 16% have said that they are planning to do so in the next two years.
Accomplishing this successfully requires big changes in how companies operate, but it can be worth it- and it’s something that tech leaders should be leading. For example, consider the opportunity to make money from data, where data and analysis are turned into profits. In 2020, the global market for this was worth $2.1 billion. By the end of this decade, experts expect it to grow to $15.5 billion, growing at a rate of 22.1% each year. However, even though many tech leaders see the potential in making money from data and technology, their systems and abilities with data are often quite basic.
While some organisations are advancing in managing their data, others might not yet be prepared or give sufficient attention to handling data. Surprisingly, data management and analytics are not among the top five priorities where tech leaders currently invest most of their time, effort, and focus. It ranks sixth on the list, following digital strategy execution (1st), security, risk, and compliance (2nd), digital strategy development (3rd), innovation (4th), and operational reliability and delivery (5th).
The survey results indicate that there isn’t a definitive agreement on who bears responsibility for data management. According to the respondents, 35% believe that Chief Information Officers (CIOs) manage data governance in their organisations. Another 34% think it’s a collaborative responsibility shared by both business and technology leaders. About 21% mentioned that their C-suite executives and tech leaders work together on these initiatives, while 8% attribute it to non-IT executives. Additionally, 2% stated that there’s no distinct ownership established for this task.
Even if organisations are still laying a foundational data infrastructure, tech leaders should still be thinking now about how to monetise their data in the future. Otherwise, it could be a missed opportunity.
Once companies have solidified robust practices for managing and governing their data, they can start exploring ways to make money from that data. However, this shift comes with its own set of challenges. The encouraging news is that many organisations, regardless of whether they are tech-focused or not, already possess data that holds value and can be turned into a source of income.
Various types of data, such as raw data, organised data, and insights obtained from external sources, are key domains that organisations can leverage to create value within their operations and generate revenue externally.
The process of monetising data will differ for each company, but it’s crucial to understand that the rules and regulations governing data sharing are constantly changing on a global scale. Organisations need to stay updated on these trends to navigate the data-sharing landscape responsibly. When uncertain, it’s advisable to refrain from sharing or selling data.
Successfully capitalising on data monetisation might also involve making data more accessible across the organisation. This often requires a coordinated effort involving data platforms, fostering a culture that values data, refining data processes, and ensuring effective communication and collaboration among various stakeholders like tech and business leaders, data strategists, data owners, data scientists, and data stewards.
Developing a vision for leveraging data or technology to make money can give organisations a competitive advantage. Every leader, regardless of industry, can embark on this journey to tap into the potential of data monetisation.
