Data-driven business models
The core of the data-driven business models is data. This focus on data affects all areas of a business model; the value proposition, value added or the revenue. The value added is generated from data making which is the company’s key resource. Thus, the main activities are data acquisition, data evaluation or data use.
Data - the key resource for business models
Data based business is no new, however, the new tech provides industries with broader opportunities, using today’s massive amounts of data for their own purposes, implementing products with wireless sensor networks, or integrating people’s decision-making through mobile computing. The sensor-based monitoring and adjustment of fuel consumption, that changed both the value proposition and value added for car manufacturer Mercedes Benz and how office supply retailer Staples now manages its online prices based on customer location data are the perfect examples.
A new way to add value
When data becomes the core of a business model, this goes far beyond evaluating and making the value creation more efficient. Companies must ask themselves how to use the tech as well the in-house and third-party data to deliver data-driven services and additional business models. Publishing and media companies clearly demonstrate, how disruptive the impact of new tech and data can be on value-added structures in ecosystems and the challenges they pose.
Instrumental approach for innovative adaptation
Companies may offer data-driven services better, cost effectively and earlier than competitors, only by monitoring and evaluating technological developments in their own ecosystem. This requires far-reaching changes to how value is added and recorded, which in turn requires new tools complementing existing methods focusing on data.
Rethink – Focus on data for future success
The move to data-centrism is a paradigm shift and a major driver in transformation for non-data-driven companies. In the future, successful companies must clearly understand what data means to them.
The focus on data will be reflected in almost all areas: services, revenue models, key resources, processes, cost structures, corporate culture, the customers and networks sphere, and corporate strategy. Only by focusing on data and taking into account its effects on the entire business process can a company hope for lasting success.
How we develop data-driven business models
To ensure more data leads to new data-driven services and business models, new tools with a focus on data must be developed complementing existing ones. To this end, we are investigating the impact of data-driven business models on the ecosystem and exploring new development methods.
What we have set to do specifically for companies: