Unlocking Financial Benefits through Data Monetization

Summary: Data monetization refers to the process through which organizations leverage their data assets and AI capabilities to create tangible economic value. This article explores the financial benefits of data monetization, treating data as a strategic asset, identifying data products, AI-driven data platform economics, the economic impact of data monetization, and getting started with data monetization.

Data monetization enables organizations to utilize their data assets and AI capabilities to generate concrete economic value. This exchange system utilizes data products to improve business performance, gain a competitive edge, and address industry challenges in response to market demand. In 2023, the global data monetization market was valued at USD 3.5 billion, and it is projected to reach USD 14.4 billion by 2032, reflecting a compound annual growth rate of 16.6% from 2024 to 2032.

Treating data as a strategic asset involves adopting a holistic approach that prioritizes data-driven business transformation to optimize value extraction. Data optimization goes beyond infrastructure cost reduction and focuses on revenue growth potential, cost optimization across infrastructure, development, maintenance, and data security and compliance.

Identifying data products involves understanding specific industry needs and use cases that require different types of data products. These products, developed from internal or combined internal and public data sources, are augmented with AI to extract unique insights that drive business decisions. Data products can be created for internal or external use, leading to internal or external data monetization.

AI-driven data platform economics involve recognizing data as a product built or powered by AI, shifting from collection-led to product-led models, and leveraging platform-driven approaches to build solutions and reduce enterprise data architecture complexity.

The economic impact of data monetization unveils a business case spanning 3 to 5 years to capture short, mid, and long-term economic benefits, addressing market demands, scalability, and the pursuit of cost optimization and revenue enhancement opportunities.

Getting started with data monetization involves defining a data monetization strategy, identifying data products, and developing an integrated AI-driven data platform using IBM Cloud Pak® for Data, IBM Cloud Pak® for Integration, IBM® watsonx.data™, and IBM® watsonx.ai™.

Sources:
– International Market Analysis Research and Consulting (IMARC) Group
– IBM

FAQ

Q: What is data monetization?
A: Data monetization is the process through which organizations use their data assets and AI capabilities to create tangible economic value.

Q: How can organizations benefit from data monetization?
A: Financial benefits of data monetization include increased revenue, cost optimization, and enhanced business performance.

Q: What are data products?
A: Data products are assets developed from a company’s internal data sources or by combining internal and public data, augmented with AI to extract unique insights that drive business decisions.

Q: How can organizations get started with data monetization?
A: Organizations can start by defining their data monetization strategy, identifying data products, and developing an integrated AI-driven data platform using tools like IBM Cloud Pak® for Data, IBM Cloud Pak® for Integration, IBM® watsonx.data™, and IBM® watsonx.ai™.