Mastering Data Monetization for Business Growth

Organizations are contending with a burgeoning influx of data, characterized by its exponential growth in both volume and variety, thereby widening avenues for monetization. Advancements in technology have facilitated more efficient data management, empowering companies to optimize the utilization of their data assets. Nevertheless, findings from a study conducted by the consulting firm McKinsey reveal that merely 41% of surveyed companies have initiated deeper exploration into this domain within the market.

The sluggish advancement in data monetization strategies is evident, with only 17% of companies having initiated such endeavors. According to a study by Tableau, approximately 12% of companies are in the process of developing prototypes, while 10% are still at the conceptualization stage. The slow pace of progress can potentially be attributed to the formidable challenges surrounding data acquisition, secure information management, and solution scalability. These hurdles persistently impede the efficient implementation of data monetization strategies across enterprises.

"Developing an impactful data monetization strategy requires a keen focus on addressing specific customer needs or use cases," emphasizes Denis Genova, CEO and Founder, XalDigital. "It entails a deliberate exploration of the value that data brings and how it can directly benefit our operations, rather than mere accumulation for its own sake. Precision and accuracy are paramount considerations in this endeavor."

Crafting a robust data monetization strategy necessitates a comprehensive analysis not only of the quality of data within the organization but also across the entire ecosystem, encompassing suppliers, customers, intermediaries, and other stakeholders. This holistic approach enables the transformation of raw data into actionable insights that drive corporate performance and strategic decision-making. By scrutinizing the quality and relevance of data sources, organizations can ensure the usability and value of their data assets.

According to Ignacio Madrid, Head of Data Management, Citibanamex, “it is imperative not only to analyze internal data but also to consider the entire ecosystem, including suppliers, customers, intermediaries, and other relevant entities.” Madrid emphasizes that drawing insights from successful cases can continuously showcase the competitive advantages offered by data monetization. Juan Jose Denis, Mexico Country Manager at BMC Software, underscores the critical nature of leveraging data assets to gain a competitive edge, highlighting that “whether the data originates internally or externally, its primary focus should be on enhancing market understanding and organizational efficiency.” He substantiates this by citing that 80% of the company's revenue is attributed to effective data interpretation. This underscores the principle that informed data utilization leads to greater agility, efficiency, and profitability.

In crafting a robust strategy, Alejandro Correa Bahnsen, Professor at Tec de Monterrey, underscores the importance of assessing critical factors such as the availability of high-frequency data, understanding consumer behaviors, and precise consumer identification. He emphasizes, "[w]e aim to develop both proprietary and third-party machine learning models to enhance target accuracy significantly." An effective data monetization strategy, exemplified by enhancing customer experience and boosting corporate performance, can yield substantial benefits, albeit contingent upon industry dynamics and company maturity.

Trends in the Mexican business landscape envision that data monetization will be an area of significant growth and development, but evangelizing its potential across organizational hierarchies is a work in progress, reports Iván González Páez, Head of Data & Analytics, Grupo Jumex. That is what makes advancing data monetization strategies now crucial, as it will likely dictate companies’ ability to adapt in a rapidly and constantly evolving environment.

"In navigating the corporate landscape, our culture has prioritized maintaining a competitive edge by staying ahead of the curve. However, the greatest challenge lies in evangelizing this agenda across our organization. Patience becomes paramount as we endeavor to instill this mindset throughout our company," explains González.