Article

Pauliina Jamsa
Pauliina Jamsa 12 April 2016

Data May Be the Most Valuable Asset Your Company Has

Big data is one of the buzzwords at the moment - but what makes it so valuable for companies? How can you monetise the data?

I was glad to be selected as one of the 40 Women in Tech to participate in Enterconf in Belfast last June. One of the most interesting presentations was “The Economic Value of Data” by Steve Todd, VP of strategy and innovation, at EMC.

According to CapGemini EMC Big Data report, 63% of the respondents considered that the monetization of the data could eventually become as valuable to their organisations as their existing products and services.  This is not so far off the truth – data may indeed become the most valuable asset your company has.

Let’s take Caesar’s Palace in Las Vegas, for example. The most valuable asset in the bankruptcy evaluation was not Caesars Entertainment group’s physical resort or the land they owned. It was the data. Their customer loyalty program with 45 million members has been valued at 1 billion dollars by creditors.

Every business is now a digital business

With the emerging disruptive and connected technologies, every business is now a digital business. It doesn’t matter whether you are a car company, mobile manufacturer or supermarket chain – everything is becoming connected and each business has some unique data that another company can combine with their own and cash on.

You can build a highly detailed database with users’ contact details, age and gender as well as their buying behaviour and patterns, interests and habits. Collection and analysis of this data is not beneficial merely because you can exploit it in your company. It can become a saleable service on its own right.

Put data in the heart of your business

Data value has to become part of your company and IT strategy and it needs to be in the heart of any plans and decisions you make. Make sure to create valuation policies, align your IT resources and data value, ensure employees from top to bottom understand the value of data collection, and provide tools and services to make the change happen.

Naturally, once you have your highly valuable database, privacy and security become a real issue. It's essential to protect and insure it, especially if your data is evaluated to be the most valuable asset you have.

Embrace the change

The world is changing and as Uber, AirBnB and Facebook have demonstrated, physical assets are becoming less and less essential in business. If you stick to the old ways and fight against the revolution, lobbying and laws can protect your business only for so long.

You may not want to embrace the change, but can you afford not to?

Watch the vlog:

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
The New '4Ps of Marketing'

The New '4Ps of Marketing'

Neil H. Borden, in 1964, gifted the world with the 4Ps of the Marketing Mix: Product, Price, Place and Promotion. This concept has been a cornerstone of business marketing. However, there are new 4Ps of Marketing – just as powerful and just as game changing as Neil Borden’s.

Daisy Kent
Daisy Kent 18 May 2017
Read more
Digital Marketing Vs. Traditional Marketing: Which One Is Better?

Digital Marketing Vs. Traditional Marketing: Which One Is Better?

What's the difference between digital marketing and traditional marketing, and why does it matter? The answers may surprise you.

Julie Cave
Julie Cave 14 July 2016
Read more
4 Important Digital Marketing Channels You Should Know About

4 Important Digital Marketing Channels You Should Know About

It goes without saying that a company can't do without digital marketing in today's world.

Digital Doughnut Contributor
Digital Doughnut Contributor 5 November 2014
Read more
How To Calculate Marketing ROI

How To Calculate Marketing ROI

Calculating marketing ROI is an exercise in patience and accuracy. The formula to calculate basic, short-term marketing ROI is simple: ROI = (Incremental Profit – Campaign Cost) / Campaign Cost. But marketers know that the formula—while accurate—is far too often misapplied to their efforts.

James Loomstein
James Loomstein 16 May 2017
Read more
Forget SWOT, The Pareto Rule Holds The Secret To Your Online Success

Forget SWOT, The Pareto Rule Holds The Secret To Your Online Success

One of the most important principles I've learned is the so-called Pareto Rule. This principle holds particular importance for aspiring online entrepreneurs. If you are a Blogger, Digital Marketer, Amazon Seller, AdSense expert, then Pareto’s Rule applies to your business. Understanding it is vital to your success.

Alex Papaconstantinou
Alex Papaconstantinou 17 May 2017
Read more