The new data economy isn’t about data; it is about insights. How can I increase the availability of my locomotive fleet? How can I extend the longevity of my new tires? How can I improve my on-time-in-full rate? Which subscribers are most likely to churn in the near future? Where is the best location to build a new restaurant franchise or open a new retail outlet? Business decision-makers want answers to these kinds of questions, and new insights services providers are eager to help them.
A growing number of companies recognize the opportunity their data provides, and they take that data to market: 1/3 of firms report commercializing data or sharing it for revenue with partners or customers. The recently published Forrester Report Top Performers Commercialize Data Through Insights Services discusses the new trends in data commercialization: who is buying, who is selling, and what offerings are available, from direct data sales to the delivery of data-derived insight services.
While some commercializers avail themselves of data markets such as Dawex or DataStreamX, many are creating more sophisticated data-derived products and services. They are becoming insights services providers, often as an incremental offering to their existing customers. Some offer insights based on smart products and IoT analytics. Siemens Mobility, Boeing, and GM offer predictive maintenance for their planes, trains, and automobiles. In the agricultural products industry, companies such as Monsanto and DuPont offer services that prescribe when and what farmers should plant, when certain interventions, such as water or pesticide applications, are advisable, or when to harvest.
The explosive growth of the data economy is being fueled by the rise of insights services. Companies have been selling and sharing data for years. Axciom and Experian made their name by providing access to rich troves of consumer data. Thompson Reuters, Dun and Bradstreet and Bloomberg distributed financial and corporate data. Data brokers of various kinds connected buyers and sellers across a rich data market landscape. Customers, however, needed to be able to manage and manipulate the data to derive value from it. That required a requisite set of tools and technologies and a high degree of data expertise. Without that data savvy, insights could be elusive.
The new data market is different with insights services providers doing the heavy lifting, delivering relevant and actionable insights directly into decision-making processes. These insights services providers come in a number of flavors. Some provide insights relevant to a particular vertical; others focus on a particular domain such as risk mitigation or function within an organizations such as sales, marketing, or operations.