Lucrative Information Solutions
In a digitized world, there is no question that data is an important firm asset. Operationally, data is required to understand and hone decisions and business processes across the organization. Strategically, data serves as a critical component of the firm’s operational backbone for customer engagement and digitized solutions, both of which are foundational for digital strategy.
In some organizations, however, the role of data is shifting—from serving as a secondary asset that supports decisions, processes, and digital strategy to being a primary asset that businesses can productize and sell. MIT CISR refers to this new role as data monetization: the act of exchanging information-based offerings for legal tender or something of perceived equivalent value. Companies that engage in data monetization are in effect running information businesses.
Since 2013, MIT CISR researchers have been investigating information businesses to understand what it takes to generate competitive revenue streams from data monetization. The researchers have discovered that the capabilities and business models for information businesses are unique. Understanding the distinct requirements of an information business sheds light on how organizations should approach data monetization to ensure positive bottom-line results from their efforts.