In recent posts I've been exploring the concept of the economic value of data from an enterprise point of view. I've covered the four principles of data value, taken a look at data insurance, and even proposed about new enterprise architectures that can support automated valuation frameworks.
Let's flip the discussion around and consider the concept of consumer valuation of data.
I've been browsing through the Outlook Report. This report takes a deep look at the business landscape for targeting what's being called the "Information Generation":
- digital citizens,
- living in a global network,
- always connected,
- with the world’s information at their fingertips
The report contains some interesting insights based on interviews with roughly 3,600 global business leaders. In regards to the economic value of data, I found the following quotes quite interesting:
"Around the globe in virtually every industry, leaders recognize that consumer expectations have been transformed by recent technological advancements."
"Leaders agreed overwhelmingly that customers, and not competitors, partners or regulatory / governance are driving the demand for better use of data and insight. This finding may explain why almost half of the leaders felt that a forward-thinking strategy must be customer focused."
Given these statements, should any exploration on the economic value of data focus primarily on consumer valuation? According to the report, business leaders might tend to agree:
Over four times as many business leaders believe that a forward-thinking technology strategy should be customer-focused (47%) than profit driven (11%).
After reading the report in its entirety, it appeared to me that when it comes to data valuation, consumers may soon be taking data value into their own hands. I learned about Personal Data Marketplaces and found out that there are already startups participating in the valuation of consumer data:
"Datacoup is a startup that aims to get people compensated for the asset they produce — their personal data. They’re building a platform that connects and monetizes demographic, social, financial and behavioral data so that people can become active players in robust data marketplaces."
The screenshot below highlights the Datacoup approach:
The diagram above is yet another example of a data valuation algorithm (similar to data insurance, patent portfolio valuation, etc). However this valuation process is unique in that it focuses on (and partners with) the consumers and the data that they own.
This new angle on "consumer data value" is another piece of the puzzle under consideration as part of our research partnership with Dr. Jim Short of UC San Diego.
In future posts I will explore data value more deeply from both the consumer and enterprise point of view.