The Data Economy Is Going To Be Huge. Believe Me.
Are they serious? I've just finished reading the recent Communication on Building a European Data Economy published by the European Commission. And, it’s a good thing they're seeking advice. The timing is perfect. I’m in the thick of my research for a new report on data commercialization. When I first published It’s Time To Take Your Data To Market the idea was merely a twinkle in people’s eye. Today that twinkle is much brighter than it has been, and it’s growing fast…really, really fast. Believe me. It’s going to be huge.
From what we see and hear, companies know they are sitting on a wealth of valuable data. And they know they aren’t the only ones who can benefit from it. According to Forrester’s Business Technographics, one-third of firms reported selling their data in 2016, up from only 10% in 2014. And, that trend extends across industries, and companies of all sizes.
Supply is growing to meet the persistent demand for new data. The use of 3rd party data in business intelligence and advanced analytics is exploding: 73% of decision-makers report that they want to expand their ability to source external data. And, that trend is matched by the emergence of insights service providers to help companies make sense of it all: the growing volumes of data, the rapidly evolving data and analytics techniques, and the tools for embedding insights directly into decision support and process automation. Our recent data and analytics survey reveals that 49% of firms report using external services providers or strategic consultants for data and analytics or insights services; another 22% are planning to do so. Take a look at Insights Services Disrupt The Data And Analytics Market.
Fortunately the Commission put out the call for consultation because clearly they haven’t heard the word. According to their communication:
"Available evidence reveals that companies holding large quantities of data generally tend to use mostly in-house data analytics capabilities. In the majority of cases, data is generated and analysed by the same company, and even when data analysis is subcontracted, further re-use of the data may not take place. Furthermore, in some cases manufacturers, companies offering services or other market players holding data keep the data generated by their machines or through their products and services for themselves, thus potentially restricting reuse in downstream markets. … Data marketplaces are slowly emerging, but are not widely used. Companies may not be equipped with the right tools and skills to quantify the economic value of their data, and they may fear losing or compromising their competitive advantage when data becomes available to competitors."
I wonder who is advising them. Not me…yet.
Maybe their observations are more from Europe than elsewhere but we see the engagement of insights services providers and the tripling of data commercialization/sharing over the past year happening on a global scale. Companies may not have all the tools they need but they are certainly looking for help. We're getting a lot of inquiries about how to value data and define new data-derived products and services. Those who keep their data to themselves and continue to fear change are going to lose out.
The market is gearing up for this shift and it's going to be huge..very, very huge. Believe me.