Detecon conducts a survey on data centricity
In the coming years, conventionally physical goods and services will be supplemented by data-centric products and services more and more frequently. This is the conclusion drawn by the opinion paper “Turning Data into Profit” from the ICT management consultancy Detecon.
When asked what information would be of especially high value, 80 per cent of the respondents mentioned the value of customer data, 62 per cent the analysis of user behavior, and 59 per cent the value of financial data, followed by geo-location or evaluation-related information. As a general finding, the authors see high potential above all in niche-related areas. However, companies are successful in the establishment of information products only if they give serious regard to the private sphere and interests of their customers and to data protection.
The Detecon experts show that the collection, processing, and management of data have developed into a business model of growing commercial viability. “Our survey identifies the success factors currently most important for data-centric business models,” says Christoph Tempich, Senior Consultant at Detecon.
“To start with, there must be detailed analyses to reveal what customers themselves might find especially interesting. Afterwards, it is above all necessary to have tight feedback loops so that the development of new products does not head off in the wrong direction.”
Generally speaking, the guarantee of a protected private sphere and data security as well as the currency of the information play a decisive role for success. Starting from prominent examples such as Google, Amazon, and Facebook, the Detecon paper investigates why these companies achieve markedly higher profitability than classic IT service providers.
Data business in many industries
Companies in financial services, machine construction, or the consumer goods industry can also implement data-centric business models successfully. The issues in these industries include the demand for products, dealing with producers of pre-products, or managing the error rate in process steps. The preparation and marketing of these data can generate substantial value.
“As the first step, companies can piggyback a so-called data sphere onto their conventional products and services,” explains Detecon consultant Philipp Bodenbenner. The sports products manufacturer Nike, for example, has taken this path by inserting a chip into sports shoes. Customers can use the information generated in the chip for their personal fitness plans or share the data with other Nike users in social media forums.
The Detecon opinion paper “Turning Data into Profit — Success Factors in Data-Centric Business Models” is available for downloading at www.detecon.com/data-centric