Data as currency in today's digital business
- Posted on March 30, 2015
The Cold War created a need for the United States to gain insight into the military strength of the Soviet Union. On July 4, 1956, America's U-2 reconnaissance aircraft flew 70,000 feet over the Soviet Union to precisely collect that insight. Fast forward 60 years and our pursuit to capture data and gain insights is still the same, if not more, but the means to collect data have come a long way. Today, our physical world is pervaded with “Internet of Things” (IoT) collecting real time data and bridging the last mile between us and the enterprise.
Savvy organizations are moving beyond seeking meaning from the data collected from these IoT devices. These organizations are using data as a form of currency to deliver more meaningful outcomes for their customers and thereby creating new revenue streams for themselves.
For example, Teatreneu, a comedy club in Barcelona, has a pay-per-laugh revenue model. Their facial recognition software monitors the number of laughs and charges customers on a per-laugh basis. People go to this show to laugh, and by giving people what they want, Teatreneu is able to increase the number of spectators and also increase the average ticket prices. Enterprises like Teatreneu are converting data into hard currency.
Another example is of an electric toothbrush with Bluetooth connectivity that sends real time insights on your brushing habits to an app on your smartphone. What if the toothbrush manufacturer could use the data collected through the electric toothbrush and predict potential oral issues and alert the user to visit a recommended dentist in their network? This would allow them to deliver meaningful outcomes for their customers, and could lead to an entirely new revenue stream for them. They would be successful converting data into currency!
Have you wondered about:
- What outcomes are my customers expecting?
- How do I create new value for my customers?
- How do my customers differentiate us from the competition?
- How do I use data to improve employee collaboration and productivity?
The answer to these questions lies in the effective use of data sitting in your enterprise data vaults. Now is the time to develop a “data currency” strategy and harvest the benefits. However, while developing such a strategy, enterprises will need to be mindful of the privacy, ethical and legal ramifications of collecting data.
Although the United States’ strategy to fly reconnaissance aircraft over the territory of a sovereign nation is debatable, when it comes to an enterprise collecting personal consumer data, there is no question about the importance of ethics and privacy. Being trusted stewards of this data is critical; veering from this role can have negative consequences with regards to employee and consumer satisfaction and even worse, can have legal ramifications.
To explore the opportunity behind these questions we invite you to read the Avanade Technology Vision 2015 and learn more about the trends that are impacting your organization today.