HOW TO START A SUCCESSFUL DATA BUSINESS
How to Get Going & Conjure Up Data Gold
Know it or not, like it or not, everyone is in the data business, as a consumer, and/or as a creator, for example if you are on Facebook then you are contributing to their bottom line (If not necessarily their tax bill).
The growing realisation that data has a value that can be measured in dollars is a misunderstood truth and concept because the new data sources too often think “I have data, so I can make money”. The world does not work that way, just having data does not mean it will magically conjure up data gold. What is needed is to put together the parts making up the data business jigsaw.
This article takes a high-level view of strategies to get going, and the pitfalls lying in wait.
Data Pitfalls so Dig in the Right Place
So for data source owners looking to monetise their data to generate revenue, (and for some companies the value of their data is worth more than the underlying business) a coherent approach is required to mitigate the errors that many have already made, for instance:
Many new data sources have little to no expertise or experience in creating a data business, often they think just because they have data, there is a market for it. This is a false assumption. Expertise is required.
Data Sources must invest in developing a business models, harnessing technologies, building partnerships, and generating sales. There is a cost involved, but it need not be exorbitant or prohibitive. Resources are required
Concepts such as Intellectual Property Rights (IPRs) are the beating heart of the data business, but often misunderstood or inadequately addressed. New ways to use data usage always precedes new ways to charge for it and so data’s incredible versatility which makes data so valuable is also an Achilles Heel. Establishing ownership and rights is an absolute requirement.