“Data Monetization. Data Monetization. Data Monetization.”
Every business executive chants this mantra like it’s a magical incantation for driving an organization’s digital transformation. Heck, it reminds me of the “Shame. Shame. Shame” chant from the Game of Thrones.
And while most organizations talk about data monetization, most lack a plan – and maybe even more importantly, a senior executive commitment – to mandate the organization’s Data Monetization opportunity. Turns out that data monetization is like teenage sex – everyone talks about doing it but few are actually doing it.
Organizations need to “get serious” about data monetization, to create an executive directive that prioritizes the organization’s efforts to uncover and monetize the customer, product, and operational insights (think predictive propensities) buried in the organization’s data, and apply those insights to optimize or re-invent business processes, mitigate regulatory and compliance risks, uncover new sources of revenue (new customers, new audiences, new channels, new partners, new products, new services, new consumption models) and create a compelling, differentiated customer experience (see Figure 1).
Figure 1: “Getting Serious” About Data Monetization
Organizations need a Data Monetization commitment that can provide a competitive advantage by leveraging the customer, product, and operational insights (predicted propensities) buried in the data to reinvent business processes, dis-intermediate customer relationships, and transform industry value chains.
I had the wonderful opportunity to participate in a “duel” with Drew Smith, hosted by Samir Sharma, about whether an organization needed a separate Chief Data Monetization Officer (CDMO) role to centralize and accelerate the organization’s data monetization efforts. Drew took the position that the current Chief Data Officer role was sufficient; that adding another C-level role would just complicate matters and that we just needed to hold the business leaders accountable for their organization’s data monetization efforts.
I, on the other hand and very much self-serving, argued that organizations need a new Chief Data Monetization Officer role – one ring to rule them all – with the corporate diktat to champion, drive and govern the organization’s data monetization efforts. That instead of diffusing the organization’s valuable data and analytics capabilities across multiple organizational silos (CIO, CTO, CDO, CDA,) that all of these capabilities should be consolidated in a single organization that owned monetizing the organization’s data and analytic assets.
If data is the new oil, then there needs to be a clear corporate mandate on the business importance of Data Monetization. But today’s CDO data monetization mandate is not clear, which is confirmed by the IDC Study “Chief Data Officers: The New Business Leaders” which highlights the four archetypes or models of data leadership – Governance Guru, Digital Innovators, Operational Optimizers, and Analytics Champions – without once mentioning “data monetization” as a priority.
And as if that’s not enough, here are IDC’s “Top Ten IT industry trends for 2021” (see Figure 2):
Figure 2: IDC’s Technology Trends For 2021
Not a word about “data monetization” here either. And if these technology advisory organizations don’t think data monetization is important, then why in God’s green earth would we expect our business partners to think it’s important.
It’s time for senior executive leadership to “get serious” about Data Monetization.
To move beyond the Data Monetization Teenage Sex stage, organizations must to get “serious” about the data monetization opportunity. And by “serious”, I mean the following:
Figure 4: Big Data Business Model Maturity Index
Figure 5: Data Science Value Engineering Framework
Figure 6: Stakeholder x Use Case Mutual Value Mapping
Finally, the organization needs an executive role – whatever you might call it – who has the responsibility and authority to drive the organization’s data monetization efforts; to develop, share, reuse and continuously-refine the organization’s data and analytics assets. The goal should be to consolidate, not diffuse, the data and analytic assets that have been scattered across CIO, CTO, CAO, CDO, and other technology-centric C-roles.
It’s time to “get serious” about Data Monetization because I ain't got no time for green bananas.