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.