Another Source for Value From Your Data

Dateline: February 6, 2015

Welcome to our Friday WRAP – one thought-provoking idea to think about over the weekend.

In a recent blog post at the International Institute of Analytics, Chief Analytics Officer of Teradata, Bill Franks, discussed a thought-provoking idea about finding value in mining data for external use. His blog, Ignore your Business, Rake in The Profits, suggests that there is unexpected value in aggregating your data for external consumption.

Want to uncover interesting ways to drive value from data? Most organizations focus primarily on internal opportunities that support their business, such as understanding customers better, determining how to more effectively price and promote products, or figuring out how to make the supply chain more efficient.

These are valuable, but in recent months I have seen a new, recurring trend popping up across industries that I believe is going to soon become quite common: Look for ways to provide value to external, third party stakeholders through analysis of the data that your organization initially collects just for itself.

Bill provides several examples of companies using their data and data sources to create revenue streams from, and strategic partnerships with, third parties.  While most organizations are focusing on descriptive, predictive, and prescriptive analytics to add value to internal decision making processes, a few are strategically branching out further by thinking about how data collected internally can be of value to those externally (privacy concerns being managed appropriately in the process, of course).

What is an example of ‘unintended external value’ from your data and data sources?  How can your company capture this value?

That’s a WRAP!  Have a great weekend!

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