Data monetization: How to get started creating data products for external sale

Many CIOs are interested in creating data products for external sale — i.e., data monetization — to generate revenue. But not many know how to get started. It’s a dramatically new activity for most enterprises (outside of data brokers like Acxiom, Dun & Bradstreet, and Experian). It requires turning raw data into a high-quality product and building a full-fledged, customer-focused business around that data product, including hiring product managers and salespeople.

My latest IDC report ($$$$), “Creating Data Products,” is intended to help CIOs get started down this road by learning from some of the pioneers: Charles Thomas, chief data analytics officer at General Motors Corp.; Justin Kershaw, CIO at Cargill Inc.; and Sakti Kunz, data monetization expert at Honeywell International Inc.

The report cites best practices such as:

  • Ensure CEO support for risk-taking data ventures
  • Turn raw data into high-quality products that solve customer “pain points” or “data gaps”
  • Staff up with customer-focused, product-oriented talent

The initiative may be led by the CIO or by the chief data officer in close cooperation with the CIO. Either way, the role of the CIO in data commercialization is multifaceted: catalyst, educator, talent recruiter, and builder of a secure data platform.

 

 

The ‘factory of the future’ will require massive investments in skills and data

I contributed — as a subcontractor to Lundberg Media — to a new report from Harvard Business Review Analytic Services about the deployment of technology and data to front-line workers in the manufacturing sector (“The Factory of the Future: Manufacturers Invest in Data and Skills to Achieve Efficiency Goals,” free PDF to download).

Screen Shot 2018-04-30 at 12.04.27 PM

In a recent survey, 78% of respondents strongly agreed with the statement “To be successful in the future, our organization must connect and empower its [front-line] workers with technology and information.” In the manufacturing sector, those workers are what one IT leader called “the deskless people.” They include the salespeople who deal directly with the customer; the employees operating machinery, making products, and keeping the processes running on the factory floor; and technicians out in the field servicing the manufacturer’s equipment at the customer site.

But the barriers to implementing this vision of automation — whether that’s mobile apps or augmented reality, for example — are many: the cost of deploying digital technologies to a broader employee base; a lack of effective change management and adoption processes; and a lack of workforce skills. Current workers need retraining. And they need secure, integrated, and trustworthy data to make decisions.

Pundits say the future of manufacturing involves more robots, sensors and mixed reality. But that will only happen if there’s a massive, comprehensive investment in technology, data and skills.

 

CIOs must battle ‘software sprawl’ to produce a more agile business

My IDC report, “Managing the Application Portfolio for Digital Transformation” ($$$$), explores how CIOs are streamlining their application software portfolios — for both on-premise and cloud-based software — as part of their journey to the digital enterprise. Leading-edge CIOs know that application rationalization and modernization needs to be a sustained capability, not just a one-time effort.

But enforcing software standards won’t win any popularity contests, and CIOs will need to deal with pockets of resistance where user groups have a tight grip on nonstandard applications. But relentless CIOs are taming their application sprawl to produce more agile businesses and free up resources for innovation.

The report identifies several best practices for getting control over the portfolio:

  • Start with a business-backed governance process (for political cover)
  • Manage the application portfolio in the context of digital transformation and business agility
  • Deal with pockets of resistance (or your efforts will be doomed by in-fighting)
  • Manage cloud-based applications to avoid “cloud sprawl”

The report features insights from Peter Weis, CIO at Matson Inc. (a $2 billion shipping company); David Jarvis, former CIO of Honeywell Aerospace; Carlos Garcia, CIO at Alvarez & Marsal (a global consulting firm); and Philip Stevens, CIO of the Army & Air Force Exchange Service (an $8.3 billion retail operation).

Government workers need digital tools to meet citizens’ high expectations for service

I contributed — as a subcontractor to Lundberg Media — to a new report from Harvard Business Review Analytic Services about the use of “Digital Tools for Public Works” (free PDF to download).

HBR-AS-govt-cover

The report finds that government agencies are slowly embracing the use of digital tools to empower the firstline workers who provide public services. The applications range from providing tablets to welfare caseworkers in the field, to the ability to pinpoint the location of a tire-crunching pothole with a geotagged smartphone photo.

Government executives and CIOs want to meet the high service expectations of a citizenry that has become accustomed to the speed and convenience of paying bills or ordering pizzas and car rides on mobile apps. But extremely tight government budgets (and silo-ed data) have prevented many agencies from moving as quickly as they might like.

 

CIOs NOT working with start-ups are falling behind

My IDC study, “Engaging with Start-Ups to Accelerate Digital Innovation” ($$$$) explores how CIOs can tap into the start-up ecosystem to accelerate digital transformation while managing the inherent risks of relying on start-ups for enterprise IT.

horserace-pexels-photo-802861-LinkedIn-version

Engaging with start-ups requires a substantial time commitment, including due diligence to avoid the pitfalls. But CIOs say that partnering with start-ups can lead to a big payoff — more innovation from emerging technologies and a competitive advantage for the business — even if some deals go sour.

There are side benefits, too: CIOs say that working with innovative start-ups can re-energize the IT group and give you a chance to peek into the future of IT.

The report covers the following practices:

  • Making the commitment to actually engage with the start-up community
  • Educating the C-suite about the risks and rewards
  • Due diligence: Asking the right questions about start-ups
  • Managing the relationship and risks

The insights come from interviews with Bryan Muehlberger (CIO of Beachbody LLC), Aaron Gette (CIO of The Bay Club Company), and Jesse Carrillo (CIO at Hines, a real estate company).

Pixabay photo released under Creative Commons CC0.