New Sources of Data
New Ways to Manage Data
Evolving Business Models for Established Companies & Data-Driven Startups
Lessons in Best Practice for Business Model Development
- build a defensive strategy into the business model. This might be through the development of proprietary software which is hard to replicate or the exploitation of network effects;
- if possible develop or have access to unique data which would be difficult for others to access or create;
- make sure your company has the skills to manipulate and organise the data;
- establish what the core value proposition(s) is in relation to data-driven services;
- work with partners and customers to add value to data, perhaps through the development of a platform for linking complementary assets. The recently launched data exchange, Terbine, is a good example of this.
Where It Is All Going
- AI and machine learning will continue to alter the economics of product and service development for the immediate future. Being able to exploit software to better understand customer needs and market conditions will provide a significant competitive advantage over those still doing business based on previous trends and gut instinct;
- Working with customers and suppliers to provide added value to all parties will be important as low friction platforms reduce the barriers to communications and information sharing;
- Just as the application of software has transformed business processes and value creation and capture over the last 20 years, so the combination of this with data collection and manipulation will do the same over the coming years. Companies with business models that do not acknowledge and this and evolve accordingly will go the way of Kodak, Encyclopedia Brittannica and Blockbuster.
How to Accelerate Growth with Data-Driven Innovation from Valuer.ai
Martin De Saulles
Editor, Information Matters
Dr Martin De Saulles is a writer, analyst and lecturer specializing in the commercial applications of data.