Most organizations search for value in their data by throwing teams of data scientists at the various stores of data collected, hoping to find insights that are commercially viable. This approach typically results in endless hours of digging for insights, and if any are found, they rarely see the light of day. In order to monetize your data, you need a different approach, one that starts by turning the process on its head. We recommend three approaches to help you monetize your data:
1. It’s about the decision
A common approach when starting an analytics project is to ask what “questions” you would like the analysis to answer. But if your goal is to drive actionable analytics that monetize your data, you need to start at a different point. You need to understand the “decisions” you would like the analytics to support. This approach, termed decision architecture, is radically different from conventional methods.
Understanding the decisions you would like to support drives the direction for the rest of the analytical exercise, including the type of data and analytics needed to support the decision. The decisions you focus on determine the analytics your team will undertake which can range from simple metrics like ROI to more sophisticated metrics such as a propensity or churn model.
2. Align decisions to business objectives
Knowing the goal is to provide analytics to support value driving decisions, you need to make sure the goals align with overall corporate objectives. In mapping your decisions to key business drivers that achieve corporate objectives, you are charting a clear path to actionable analytics.
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