Tuesday, March 27, 2012

Monetization: What? How? Why?

Monetization, by definition, is the process of converting properties into a commodity; something useful with monetary value. In the world of digitization, monetizing assets means monetizing data; turning properties, both physical and digital into valuable commodities, not only reducing existing expenses, but creating new revenue potential.

Data monetization occurs through the digitization process, through the capture, storage, and application of that data into a valuable resource that can be used to generate new revenue streams, create operational efficiencies, and increase customer satisfaction and loyalty. Data monetization (and digitization) occurs through four phases:

1.  Identification of all existing properties, physical and digital born data.
2.  Storage and access of that data.
3.  Analysis, organization and application of business intelligence to data.
4.  Introduction of digitized data to existing customers and new prospects, often in the form of new vehicles of delivery (i.e. – website access, web and mobile applications, interactive smart response systems, etc.) 

Monetization of data creates internal benefits for an organization, often not fully realized until after digitization occurs. Management and employees, who understand their product and service offering, and work with company assets on a daily basis, now in the form of digitized data, are able to identify new opportunities to improve the customer experience and generate revenue, as their workflow processes change.

A newly digitized business can be to its staff, like a laptop with Internet access and the suite of Microsoft Office products is to a student who traditionally learned solely by use of textbooks, notebook paper and a pen. Both the staff and student have exponentially more data and tooling at their disposal for accelerated decision-making: more frequent and immediate decisions, versus delayed response. Improved decision-making, at all levels within an organization, leads to the discovery of new revenue streams, expense reduction, and improved operations, service, and retention. 

Of course all of this comes at a cost and needs to be done correctly.  Metadata, as we have learned in my previous entries is critical as well as the proper storage for your newly digitized assets.

Digitized data essentially evolves into legal tender. Benjamin Franklin once said, “The use of money is all the advantage there is in having it.” Like money, the real advantage in having data is in its use.

Tuesday, March 20, 2012

Offset Costs through Digitization & Monetization of Assets

One of the primary obstacles executives, archivists, and information professionals may face in the digitization of their physical assets is the cost. 

Traditionally, companies have used the supply and demand of physical properties from existing clients as a separate recurring revenue stream that directly affects the bottom line. By providing unlimited access to intellectual properties online, the ability to charge the same fees for access may diminish.  Additionally with the glut of digital assets available for purchase online, prices are diluted and similar content might be selected instead of your content.

Successful businesses already recognize that in order to keep up with the rapidly changing business world, they too must be willing to adapt and evolve. When a revenue stream is eliminated, the costs associated with that stream must be reduced or eliminated as well, in order to maintain financial solvency. Finding ways to reduce expense plays a critical role in the digitization process.

At LAC Group, we have an established team of efficiency experts that have been working with clients over the few decades analyzing, identifying, and advising clients on specific areas of information management and asset management expenses that can be offset or sometimes eliminated to create a return-on-investment as they re-invent their businesses in this new digital marketplace, whether through monetization strategies or reduction in physical footprint and inefficiencies/speed of information delivery. 

“Almost all quality improvement comes via simplification of design, manufacturing…layout, processes and procedures.” – Tom Peters

Tuesday, March 13, 2012

Marketing Advantages to Digitization

Marketing is one of the basic fundamentals of the “business of business” necessary to effectively identify and obtain new customers, and build strong relationships with existing customers to ensure retention. Effective marketing should not only convey your product, price and delivery methodology, but more importantly it is your tool to communicate the value you create for your customers, partners and society.  
Launching your business within the Digital Marketplace creates many new marketing advantages in product, price, promotion, and place, and positions you as a progressive and viable player in this new rapid-growth economic environment.
Products and services, with a digital footprint, demonstrate that your business is dynamic and evolving with the changing marketplace; that you are not only stable, but forward-thinking, innovative, and you are here to stay.

The Digital Marketplace may require changes and even creativity in product pricing methodology, but it also opens the door for effective communications with your customers that you are committed to add value and provide your customers with more.

Promotion is one of the most exciting aspects in digitizing and metadata tagging your intellectual properties, because it creates a new proactive channel for marketing your products, creating a broader and wider market appeal for you. The very nature of the Digital Marketplace places consumers at your doorstep, automatically reducing the time, money and efforts you have to spend finding them.  

Join me again next week as we explore the expense reduction offsets to digitization.

“If one does not know to which port one is sailing, no wind is favorable.” – Lucius Annaeus Seneca

Blog Reference:
SmallBizU: Marketing 101: Fundamentals

Tuesday, March 6, 2012

If You Want To Play Ball In The Digital Marketplace, You Have To Provide Information

Only a few years ago, we were all learning to embrace new online communication with our customers through emailing, and how to create a business website. Direct mail campaigns took on a whole new appearance, and more importantly so have we to our customers.

2010 Internet Statistics
Email Accounts worldwide - 2.9 billion
Emails sent on the Internet - 107 trillion
Email messages sent per day - 294 billion
Websites as of December 2010 - 255 million

In future blog entries, I'll review what my firm, LAC Group, is doing to address the need for enhanced communications, as email becomes the new snail mail.

By the time we embraced these new technologies and began realizing the significant improvements and cost savings to our business operations, the Digital Marketplace threw us a wealth of new tools to add to our arsenal in professional networks, multimedia, online news and publications, and smart links connecting absolutely everything.

Today’s consumer is not only smarter, but faster, a lot more resourceful, and a lot less patient... as a result. Consumers spend seconds perusing websites for the information they want or need, and quickly move on when they don’t find it through you.  

There is really no way around it, if you want to play ball in the Digital Marketplace, you have to provide information, and you have to provide it using multi-media, in real time. Digitization of your existing properties is fast becoming an expectation; the basic entry fee to successfully conduct business in today’s market. 

Join me again next week as we explore the marketing advantages to digitization.

“And while the law of competition may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department.” – Andrew Carnegie

Blog Reference
Pingdom: Internet 2010 in Numbers