maximizing value through data: business value … · maximizing value through data: business value...
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Maximizing Value Through Data: Business Value Generation and Data Monetization
Dr. Barbara Wixom, Principal Research Scientist, MIT Sloan School of Management, Center for Information Systems Research
Anne Buff, Thought Leader, SAS Best Practices
@anne_buff
Introductions
Dr. Barbara H. WixomPrinciple Research Scientist
Center for Information Systems Research (CISR)
MIT Sloan School of Management
[email protected]; http://cisr.mit.edu/
Anne BuffPrincipal Business Solutions Manager
SAS Best Practices
@anne_buff
Information Offerings Value Chain
DATA INSIGHT ACTION
@anne_buff
Definition: SAS
pronunciation [mon-i-tahyz-ā-shuh]monetization
“The collection and packaging of data or
insights derived from such data for delivering
value-added services or creating revenue-
generating products.”
Anne Buff
SAS Best Practices
@anne_buff
What’s important here?
Purpose
Method
Storage
Integration
@anne_buff
What’s important here?
Data and Insight
Reporting and Analytics
Decision Management
and Change Management
@anne_buff
What’s important here?
Ease of Use
Context and Understanding
Proximity of Information
to Action
Fit for Purpose
@anne_buff
Data-based Value Creation
@anne_buff
Definition: MIT
pronunciation [mon-i-tahyz-ā-shuh]monetization
“Exchanging information-based products and
services for legal tender or something of
perceived equivalent value.”
Wixom, B. H. “Cashing In on Your Data,” Center for IS
Research Briefing, XIV, 8 (August 2014)
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
The track to generating value for internal information offerings
Source: Wixom, B. H. and Beath, C. M. “Winning the Data Race,” MIT Sloan CISR
Research Briefing, Vol. XIV, No. 3, March 2014.
BUSINESS
VALUEBUSINESS
PURPOSE
Data Insight Action
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Data monetization is about understanding your customers’ (or other stakeholders’) racetracks
Source: Wixom, B. H. and Beath, C. M. “Winning the Data Race,” MIT Sloan CISR
Research Briefing, Vol. XIV, No. 3, March 2014.
BUSINESS
PURPOSE
Data Insight Action
BUSINESS
VALUE
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Data monetization information offerings
Source: Wixom, B. H. and Beath, C. M. “Winning the Data Race,” MIT Sloan CISR
Research Briefing, Vol. XIV, No. 3, March 2014.
BUSINESS
PURPOSE
Data Insight Action
Raw data
Prepared data
BUSINESS
VALUE
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Data monetization information offerings
Source: Wixom, B. H. and Beath, C. M. “Winning the Data Race,” MIT Sloan CISR
Research Briefing, Vol. XIV, No. 3, March 2014.
BUSINESS
PURPOSE
Data Insight Action
Reporting
Analytics
BUSINESS
VALUE
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Data monetization information offerings
Source: Wixom, B. H. and Beath, C. M. “Winning the Data Race,” MIT Sloan CISR
Research Briefing, Vol. XIV, No. 3, March 2014.
BUSINESS
PURPOSE
Data Insight Action
Process design
Process execution
BUSINESS
VALUE
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Data monetization
Source: Wixom, B. H. and Beath, C. M. “Winning the Data Race,” MIT Sloan CISR
Research Briefing, Vol. XIV, No. 3, March 2014.
BUSINESS
PURPOSE
Data Insight Action
BUSINESS
VALUE
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Data monetization requires platform, people, and perception
B.H. Wixom, J.W. Ross, and C.M. Beath, “Capturing Value From Big Data At comScore Through Platform, People
and Perception” MIT Sloan CISR Research Briefing, Vol. XIII, No. 11, November 2013.
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Six Sources of Value for Information Businesses
Wixom, B.H., A. Buff, and P.P. Tallon, “Six Sources of Value for Information Businesses,” Center for IS
Research Briefing, XV, 1 (January 2015).
Information businesses recognize
that their clients must act upon
information products and services in
ways that generate business value;
otherwise, the information seller’s
business model is not sustainable.
This knowledge creates an urgency in
driving client action…
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Commitment to client action
Monitor action
Remediate lack of action
Offer consulting services or process execution
Co-produce offerings
Ensure offerings are actionable (e.g., visualization, dashboards)
Offer outstanding user call-in support (i.e., hand holding)
Educate within the context of client use
Wixom, B.H., A. Buff, and P.P. Tallon, “Six Sources of Value for Information Businesses,” Center for IS
Research Briefing, XV, 1 (January 2015).
Center for Information Systems Research (CISR)© 2014 MIT Sloan CISR
Six Sources of Value for Information Businesses
Wixom, B.H., A. Buff, and P.P. Tallon, “Six Sources of Value for Information Businesses,” Center for IS
Research Briefing, XV, 1 (January 2015).
Center for Information Systems Research (CISR) © 2008 MIT Sloan CISR -
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2015 MIT CISR Research Projects
The Digital Economy: Exciting New Management Challenges
Engaging Your Executive Committee and Board on Digitization
Beyond Monetization: Balancing the Risks and Rewards of Data
The New IT Unite Operating Model: Orchestrating the Supply and Resources for Digitization
Business Complexity as a Strategic Choice
Becoming a Digital Ecosystem Driver
Imagining the Future: The Possibilities Offered by Technology
Designing Digital Organization: Strategic Responses to SMACIT-Induced Disruption
The Internet of Things
Inventing the Digital Workplace
The CIO as Venture Capitalist
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