In a digitized world, data is unquestionably an important company asset. Operationally, the company relies on data to understand and hone decisions and business processes. Strategically, the company leverages data to change customer value propositions and the nature of the company's core offerings.
MIT CISR research identified three key shifts that impact how companies increasingly generate value through data in today’s digital economy:
- Companies monetize data using market-facing approaches
- They rely on five data monetization capabilities—data asset, data platform, data governance, data science, and customer understanding—to increase the liquidity of company data assets
- They democratize data across the enterprise to fuel work tasks in all corners of the organization
Companies that respond accordingly to these shifts will set themselves up to maximize value creation through data monetization, a term we use to describe the direct and indirect conversion of data into financial returns. We believe that business leaders should view data monetization as a key source of financial value for the company.