By 2020, big data and business analytics will be generating $188.8 billion in revenue worldwide. If you’d like a piece of this pie, now’s the time to get started. With more data available than ever before, why not get paid for your data?
In this article, you’ll learn everything you need to know about how companies are making big money with big data, and how you can too.
Ready? Let’s get started.
What is Big Data?
Big data seems to be the term on everyone’s lips these days. But what exactly is big data, and why is it so important?
Big data describes the large volume of structured and unstructured data inundating businesses each day. Humans generate data with every page they visit online. They take their GPS-equipped phones everywhere and communicate through chat and social media apps.
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Not to mention, machines are also generating more data than ever. This includes smart home devices, sensors on machines and in factories, and more. All this data leaves digital footprints everywhere.
It’s not the data itself that’s important. It’s what your business does with that data that matters the most. If big data isn’t analyzed, it’s useless. But when you use this data effectively, you’ll get insights that will lead to more strategic business decisions.
Here are just a few ways big data is being used:
#1. Crime Prevention
Police forces around the world are using data-driven strategies based on both public data and their own intelligence. This allows them to deploy their resources in the most effective way, and act as deterrents when necessary.
#2. Prediction and Response to Disasters
Both man-made and natural disasters can be predicted with more accuracy than ever before. Scientists are using data from sensors to predict where earthquakes are most likely to hit next. They’re also using big data to safeguard and monitor the flow of refugees fleeing war zones across the globe.
#3. Improved Healthcare
Patients are wearing smart devices which allow doctors to monitor them from a distance and pick up on trends. Doctors and scientists are also analyzing images and medical records for patterns. These help with the development of new medicines. This data also allows medical professionals to spot diseases earlier than ever before.
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Making Money With Big Data
Smart business owners are already seeing the writing on the wall and considering how they can make the most of the vast amount of data at their fingertips.
While we have access to more data than ever before, only a small amount is currently being analyzed. While many businesses have access to a huge amount of data, very few know what to do with it. This means that you have a serious opportunity to grow your business and increase revenue.
Here’s how you can make money with big data:
#1. Passing on Insights
One of the best ways to use your data is to aggregate and enrich it, and then sell it to your customers as valuable insights.
Online indexes, dashboards, and reports can be bundled within your current offering. This makes the products and services you sell more valuable. You can also augment interfaces with machine learning so customers can see new insights on the go.
#2. Selling Advertising and Marketing Data
Data that tells you something about your customers and their interests can be used effectively to create advertising and marketing solutions. Either you can use this data yourself for your own company’s advertising and marketing, or you can sell this data to other businesses so they can use it.
One example of this is Foursquare. The company sells data to other businesses. This allows those businesses to optimize their online marketing and outdoor advertising based on the routes most people are using when navigating their cities.
If you’re considering doing something similar, it might be a good idea to read more about this option.
#3. Sharing with Businesses Throughout the Value Chain
If you’ve struggled with data silos, you’re not alone. Many businesses only have data from their own customer interactions and operations.
But often, businesses are operating in value chains and network environments. And the final delivery to the customer is due to the collaboration of several different companies.
This gives you a massive opportunity for sharing data between companies. You can monetize your own data by selling it to vendors and suppliers, to resellers and retailers, or both.
#4. Selling Outside Your Industry
This may seem obvious, but it’s easy to forget about the potential outside of your own industry. You may have a number of players interested in relevant insights about customer behavior, economic activity, or similar topics.
You may be surprised by just how many innovative opportunities and partnerships are available. In Europe, banks have been required to open data about accounts and payments so it can be used by others. This is a huge opportunity for telecom, information, and fintech companies which can use consumer banking data to create new services.
Another good example of this can be seen with Nike. The business is collecting data generated by sports clothes which are equipped with smart technology. They could sell this data to a number of different industries in the future, including insurance companies which could use this type of data to predict how healthy a customer will be in the future.
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The term “Big data” has been buzzy for some time. And it’s easy to see why when you consider the profound impact it can have on your bottom line.
We can expect increased data sharing to help businesses provide more tailored recommendations for customers, a better shopping experience, and a wealth of new products based on what data has demonstrated that consumers actually need.
By using the above strategies, you can monetize your data and potentially add new products and services to your business.