What makes a successful data partnership?
It’s abundantly clear that data continues to proliferate at an extremely fast pace. By the time this post reaches you, more than 2.5 quintillion bytes of data will have been created by the end of the day, and this amount continues to increase.
Despite the volume of new data constantly being generated, many organisations have been slow to grasp the potential value of latent data assets that exist within their own walls. While there is no universal path to bridging the gap between untapped data assets and additional revenue opportunities, finding the right experienced partner is key.
The global alternative data market size is anticipated to reach $17.35 billion by 2027, expanding at a CAGR of 40.1% from 2020 to 2027, according to Grandview Research.
Alternative data sources are not restricted to just consumer transaction data – they expand well beyond that to digital receipts, keywords and search traffic, clickstream, mobile app intelligence, point of interest (POI) and location, public web harvesting, connected car data – and the list goes on.
Companies are combining multiple forms of alternative data to extract alpha that can provide meaningful insights into various corporate and consumer trends. Historically, institutional investors have tapped into the power of alternative data, but now the benefits are also being realised by operating organisations to make profitable strategic decisions.
Data monetisation should be a component to every company’s strategy
Businesses, corporations and investors worldwide are faced with questions looming around post-COVID realities and how to navigate and react to changing user behaviour. Alternative data will continue to answer more questions in real time, and it is here to stay.
“Few organisations take full advantage of data generated outside their walls. A well-structured plan for using external data can provide a competitive edge.”
On one end of the spectrum, there are companies that have just begin to think about data monetisation, without clarity on the steps needed to leverage their business’ exhaust data. But there are companies, although very few, that have decidedly made data monetisation measures a part of their business strategy.
Here are a few examples in action that leverage both internal and external sources:
- Health providers partner to create a big data analytics platform.
14 leading healthcare providers are partnering to form Truveta, a new company that will leverage big data analytics for enhanced care insights. The platform will be designed to help improve health equity and advance personalised medicine.
- Equifax leverages alternative data to better understand customers.
In early 2021, Equifax made the move to acquire long-term open banking partner AccountScore. By combining AccountScore’s previously external bank transaction datasets with traditional credit bureau information, Equifax was able to create a more holistic view of its customers.
- Edmunds turns customer preference data into an additional revenue stream.
With millions of visitors to its site seeking car information services, Edmunds sells rich data on customer preference to automotive manufacturers and dealership networks as an additional revenue stream.
Data monetisation and individual privacy can coexist with a comprehensive compliance framework
So, if data monetisation can provide a clear path to high-margin revenue (often in a short period of time), why aren’t more organisations executing strategies to reap its rewards? Arguably, some of the biggest roadblocks are lack of diligence to qualify quality and ethical data, along with no dedicated internal resources or structure thus leading to limited endorsement from management team.
The role of partnerships in building successful data monetisation strategies
Outside of the need to have a sound compliance-driven strategy, the amount of legwork and organisational capability needed to monetise data can often be the roadblock to moving the needle.
Established protocols and expertise may not be available in-house. And if you’re unable to build this strategy internally, here are a few areas where the right partner can step in.
Consider partnering with M Science
What sets us apart and drives our success is largely our data acquisition strategy. We continue to implement a highly effective and thorough due diligence process which demonstrates deep knowledge and a layer of legal and compliance review for both our partners and clients.
We have invested and grown our data partnerships over the years, thus helping our partners multiply their revenue so they can focus on what they know best – their primary business.
Ultimately, our research and data solutions help investors and companies analyse, strategise and react with new norms as user behaviour continues to dynamically evolve. We have worked tirelessly for nearly 20 years gaining our clients’ trust by continuously improving and delivering competitive insights and will continue to do so.
If you are looking for a partner or want to simply talk data, we are here for you – please reach out to Sunaina Swaminathan, head of data partnerships at M Science, [email protected].