Big data costs will see firms monetise information assets

Friday 11 January 2013

Customer service

Almost a third of businesses will look to directly or indirectly monetise their information assets this year, it has been predicted.

IT analyst Gartner found that the financial demands of storing and managing big data will lead 30 per cent of firms to trade, barter or sell their assets in 2013.

The firm noted that many enterprises are starting to appreciate the "real market value" their harvested information assets have within their own industries or beyond.

Gartner believes that, since many businesses are ill-equipped to develop and introduce information-based products, 'information resellers' will arise to help organisations develop and execute their monetisation strategies.

Doug Laney, research vice-president at Gartner, said the need to justify the expense of accumulating and managing huge volumes of data has led many organisations to consider a shift in approach.

"For example, several retailers are already generating millions per year in incremental revenue by placing online their point-of-sale and other data for business partners to subscribe to," he noted.

"Other individuals have launched ventures packaging and reselling publicly available data, or using it to launch new information-based products - such as in the insurance and financial markets."

Mr Laney said businesses must recognise that their personal usage, location, profile and activity data has "a tangible market value".

"They should guard it and ensure that when they do share it they receive ample services, products or cash for it," he stated.

In addition, he urged businesses monetising information assets to be sensitive to the reputational risk of public backlash against such practices.

Posted by Alex Boardman