Guide Toward Data Monetization
Data is not an administrative cost driver; it helps support your enterprise strategy and produces value. As a result, SAP customers often ask for guidance on their way toward data monetization. This article provides an overview of how Business Transformation Services at SAP help put more-effective data monetization into practice.
Many companies struggle to realize the true value of data, as they lack a data strategy that outlines their goals. This in turn makes it difficult to determine if data initiatives contribute to their overall goals, so the value of their data cannot be measured easily.
Within these types of organizations, it’s not clear how they should generate successful data-based growth drivers.
As a result, corporations can become stagnant and lose market share. SAP offers a variety of best practices and services to guide you toward more successful data monetization.
Assessing Data Management for Your Business
We offer a holistic assessment of your company’s existing data management practices. These focus on five capabilities:
- Data science
- Customer focus
These capabilities allow you to identify and benchmark your data maturity. A structured evaluation of improvement potentials allows your company to create a transformation plan and points out priorities for a more-successful data monetization strategy. (See Figure 1.)
Outcome-Driven Data Strategy
A data strategy is essential to the success of any digital project, program, or transformation. You should thoroughly review it when it exists or is newly created. The data strategy should be “outcome-based” because a data strategy derived from the business strategy and embedded in the business model supports essential business goals. As shown in Figure 2, an outcome-driven data strategy offers a more-structured, five-step approach to derive measurable goals within the data practice, which can support the overall enterprise strategy.
Three Steps Toward Data Monetization
Data monetization initiatives can be classified into three buckets, as shown in Figure 3:
- Data optimization refers to classic master data practices, such as deduplication, standardization, harmonization, and optimization of processes, organizations, or technology. The goal is to increase data quality.
- Improved analytics and data science not only allows better insights and understanding, but also increases the availability of data and offers companies better data democratization, which results in enhancements for control and decision-making.
- Successful innovations make use of existing data in a more-innovative way to offer improved services and grow sales.
Making Your Data Monetization Initiative a Success
Successful data monetization requires a structured approach. SAP solutions and services can bring experience from a myriad of data assessments and can offer you a more tailored approach that can help fit your needs.
By understanding the status of your business, developing a transformation master plan, defining and implementing an outcome-driven data strategy, and initiating and realizing data improvements, you can secure the success of your data monetization program. This can help you foster a more data-driven culture, improve control and decision-making, and open up new revenue streams.