Data monetization: What leaders should consider before getting started

In today’s rapidly evolving business world, data is everywhere and is more valuable than ever. However, for companies whose core offer is a non-digital product (think manufacturing, retail, or agriculture), figuring out how to monetize data can be a real challenge.

This article provides an overview of key elements to consider when embarking on data monetization. As the whole process can be quite complex, I also divided those elements into four categories, identified during my research: strategy, resources, people, and continuous improvement.

If you are new to data monetization, I invite you to read on. Hope this article will help you get started .

1. Strategy: align before you leap

First things first: if you’re going to dive into data monetization, make sure it aligns with your company’s strategic goals. This alignment will support the broader vision of the company and create a sense of purpose. In addition, it helps prevent situations in which the company invests money in data monetization strategies that will not deliver a meaningful impact.

What does alignment look like? It’s about using data to complement your strengths, not compete with them. If your core business isn’t digital, start by improving decision-making or streamlining processes. For most companies in this space, these types of initiatives, like integrating data insights into supply chains or customer service, contribute more to complement core competencies, ensuring that data initiatives add value without diluting their primary business focus.

Pro tip: When you leverage data to enhance operations, you’re not just getting more efficient, you’re creating real-time insights that can make decision-making smarter, faster, and more effective.

When I worked at Ab-Inbev one thing that always fascinated me was how the company was managing to build a completely new digital business while still keeping its core in mind (for a future with more cheers). They developed several digital solutions, including two marketplaces: one where points of sale could buy beverages for their businesses, and another for consumers who wanted to order beverage deliveries (including beers from competitors). In addition, several other digital products, such as a mobile app, called BEES Force (on which I worked), were utilized to send algorithmically driven tasks to frontline representatives, to ensure that they offered the right products to the right customer. BEES Force was initially utilized globally within Ab-Inbev, and over time evolved into a SaaS. If you want to check some of the other cool things that were developed by Ab-InBev and that were aligned with its core strategy you go to this website: https://www.bees.com/en

For now, let’s continue.

2. Resources: build the right foundations

Let’s face it: good strategy needs solid execution to generate value, and data monetization is no exception. It needs to be well-supported to succeed, and this requires investment. We’re talking about time, money, people, and tech. But don’t worry, it doesn’t have to be overwhelming. The key is to make sure you’ve got the right resources in place, and nothing better than the collaboration of a cross-functional team to determine what′s essential. One idea is for business and technical managers to join forces with an expert who can “speak” both languages. This person will be able to bridge the gap, ensuring that strategy and execution are aligned, so everyone works toward a shared vision.

Now that we have a strong team, let′s turn our attention to the star of this game: the data. To successfully monetize it, we need to ensure the data is valuable and reliable. Clean, accurate, and accessible data is non-negotiable. Implementing robust governance processes will help maintain high data quality, so you can trust the insights provided by it.

To facilitate access and use of data, user-friendly platforms can be leveraged to present data in a storytelling format. This approach will enable stakeholders with different backgrounds to analyze information more effectively, allowing them to make data-driven decisions. Additionally, keep in mind that balancing security with accessibility is vital. Sensitive information must be protected, and to do so, you can create authorization layers for users within the system.

Lastly, in this section, I would like to write about scalability (the last cookie in the package). Everyone wants to create scalable solutions, with their low marginal costs and higher return on investment. Creating scalable solutions for data monetization involves several key strategies, including the implementation of robust data aggregation and integration tools to consolidate data from various sources into a unified platform, ensuring a comprehensive view for better analysis and insights. In addition, utilizing APIs allows third parties to access data, creating a more efficient ecosystem. Leveraging scalable cloud infrastructure is important when handling increasing data volumes because it provides flexibility and cost-effectiveness.

In addition, while creating customizable data products tailored to specific industries can attract a broader customer base, it needs to be done with care, so the provided solution is still scalable and cost-efficient. Product managers can play a key role here. By researching the product, understanding customer needs, and evaluating how new products and features fit into the bigger picture, they help ensure that any additions bring real value. The goal is to avoid adding features that only serve a small group and instead focus on solutions that are relevant, impactful, and aligned with the business’s growth strategy.

3. People: your secret recipe

Even though I already mentioned people in the section “Resources”, I find it so important that I decided to create a pilar only for it.

First, let’s talk about leadership. No data initiative succeeds without the right people leading the change. Strong leadership sets the tone for the whole organization, ensuring everyone is on board with the vision for data monetization. I believe great leaders need to champion data initiatives because if leadership doesn’t take data seriously, no one else will.

Another important thing is to make sure everyone is on board with what needs to be done and commits to it. That is why it is important to encourage collaboration. In the end, monetizing the data is a team effort, and involves everyone, from operations to top management. Therefore, making sure that know their role is essential.

The last thing I want to call attention to in this article is that, even if you have the buy-in of people involved in the data monetization initiative, this does not mean they will be able to execute the necessary tasks and fulfill their roles. It is also essential to invest in training since data is only as good as the people using it. Build your team’s data literacy and keep them up to speed with the latest tools and trends, so they can also propose new things and harvest the full potential of the data they have access to.

Want to foster a truly data-driven culture? Give employees incentives to experiment with data, and watch innovation take off.

4. Continuous improvement: stay nimble

Data isn’t static, and neither should your approach be. Regularly review your data monetization initiatives to ensure they align with your business strategy. Start by setting goals and key metrics that help you evaluate if the desired results are being achieved.

Additionally, build a system for ongoing feedback and iteration. The business world moves fast, and if people in the organization have access to these results, it will empower them to come up with strategies to improve them, which may lead to faster time response.

In addition, don’t be afraid to pivot if something isn’t working. Change is part of any business and should be embraced for businesses to thrive. The faster you are able to identify those points of improvement, the better, so you do not keep sailing in the direction you do not want to go.

The bottom line

Balancing your core business with data monetization initiatives might sound like walking on a slackline, but with the right approach, it’s doable. Start with the four categories: strategy, resources, people, and continuous improvement. This way you’ll protect your primary business and unlock exciting new opportunities.

Remember, it’s not about chasing every shiny new data trend. It’s about leveraging what works for your business and staying true to your mission.