Mar 04 2014
A recent article by the big thinkers in McKinsey’s Marketing & Sales practice explores the opportunity for forward-thinking companies to share and monetize their Big Data within their partner ecosystems. This monetization, in turn, can help companies fund their larger efforts to turn their Big Data into improved business outcomes.
The article offers thoughts on how to make such a program successful, including:
- Collecting and consolidating a data stream that’s ‘shareable’
- Sharing the data in a controlled, traceable manner
- Enhancing the data by providing analytics and other value-added services, ideally with the help of a specialist partner
The example of dunnhumby and its ‘customer science’ business is given as a leading example of how this strategy has paid off for grocery retailer Tesco and Tesco’s CPG suppliers. These suppliers pay for access to both the customer shopping data and the analytics platform that helps them understand their consumers and their purchase behaviour. dunnhumby has in fact used this model to build a highly successful business working with both retailers like Tesco, Kroger, Metro, and Macy’s and product manufacturers like Coca-Cola, P&G, L’Oréal and Kimberly Clark.
How do companies know if Big Data sharing and monetization is right for them? Ultimately, if there’s a business case to be made: if the data is sufficiently valuable to enable monetization to a broad-enough network of partners, then it can work. Even more so if that data is provided in the context of an analytics platform that helps users turn the data into actionable insights.
For the complete article, click here: http://www.forbes.com/sites/mckinsey/2014/01/15/new-ways-for-turning-data-into-dollars-now/