How Companies Make Money with Their Data
Over 170 executives interested in commercializing data joined us at the Conrad Hilton on February 1 for Outsell DataMoney 2018 — and what a wowser it was.
There were hard-hitting lessons from emerging companies. Stalwarts like Dow Jones or Dun & Bradstreet talked about the tools and technologies they use to manage their content supply chain and the ways they value aspects of their content value chain and their data products. We heard from Honeywell and ADP about their initiatives to commercialize from their core enterprise business. We heard from upstarts about how to use data to monetize intent, build a new workflow tool for a nascent industry, and leverage APIs to help make data smart. Matt Marolda, CAO of Legendary Entertainment, started the day sharing how he uses data to drive movie attendance and how he and his team optimizes huge marketing spend in order to do so.
The day was must-see TV, only it was real life in downtown Manhattan.
I’ll leave this post with takeaways from the event using the format Outsell is known for — ending all we do with Essential Actions, making sure everything we advise is actionable. So, in no particular order:
1) Think ecosystem: Oil and data is too narrow a comparison. According to 3Pillar, it’s more about building an ecosystem like the one Rockefeller built — pipelines, railroads, adjacent products to create demand (think Petroleum Jelly). Build an ecosystem, ideally with partners around your data business.
2) Don’t forget product management: One of the biggest deficits we see at Outsell is too many companies starting their “data” initiatives without a product management function sitting right between content and engineering operations. Product Management is Switzerland, their only reason for being — advocacy for the market and ensuring product market fit and success. They align the rest of the team to build and GTM. Avoid the technology first trap and do not think about data offerings without a PM sitting squarely at the table.
3) Embrace feedback: Remember that client feedback will always come, welcome it. Sakti Kunz from Honeywell calls this ‘ground truth.’ I love that phrase. Relish ground truth.
4) Take stock of the assets: At Getty Images, when they set out to drive new revenue streams, they started by getting a better understanding of where the data resides, what repository it’s in, who owns it, and how they could streamline policies. I guess you could call this good “data governance.” The devil is in the details with data. Start at the bottom.
5) Be sure to have CEO and stakeholder blessing: Focus the strategy of data around revenue and business outcomes. Make the business case and 9 times out of 10 the story is in revenue.
6) Think market in: Related, start with the market first and work backgrounds. Data businesses are not about technology solutions. They are not about buzzwords like machine learning and AI or algorithms. Those are neat enabling factors, but they are just that, enablers. Work market backwards. By the way, that’s about the only way to create a revenue story, so these two go hand in hand.
7) Think outcomes: There really isn’t more to say here. If you aren’t thinking about the business impact you intend to deliver, then the data business exercise is FUTILE.
8) Have a plan for GDPR: In doing so, recognize that most of the planning is around several items:
a. Having a risk-based approach and understanding tolerance levels for being compliant.
b. Bringing business people and legal teams together. This is a team sport.
c. Recognizing that a big portion of GDPR requirements (guidelines) are really about good data business practices, and they are probably things to have been doing all along.
9) Have a plan for security. Security and breaches are the bane of our existence. It’s not a matter of if, but when a breach will happen. Have good protocols; be clear on who has access to what systems and why. Have a mechanism for who takes charge and how to notify customers and others. Don’t forget Equifax.
10) Last and most important — have a purpose: If you want to know why the business of data is so relevant, it’s the difference it can make on the planet. It’s not about oil. It’s not about gold. It’s not about a better refinery. It’s about purpose, about linking purpose to results, about making sure good business means more than just performance on the top line. There was no better way to end our conference than to listen to the riveting, jaw-dropping, thought-provoking, heart-inspiring keynote from Jeff Tarr, who recently left Digital Globe after overseeing its amazing growth and exit. What a story. More on that soon, but for a peek here it is, and it is “must see” TV.
Thanks so much to our sponsors!
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