Data Monetization - How an Organization Can Generate Revenue with Data?
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Data Monetization – Miten organisaatio voi tuottaa liikevaihtoa datan avulla?
While digitalization evolves and distinct technologies are developed further, the role of data and data analytics has grown and become more important in the eyes of organizations. Simultaneously data is not considered anymore as insignificant raw material but an important ingredient in developing business activities and enabling innovation. Nowadays, due to the enhanced information technologies, an organization does not need to create data or its more refined forms itself but data can be sold or purchased in the same way as tangible goods or services. Despite an idea of business focused on selling data is rather novel and it has not been yet researched extensively. This thesis work studies Data Monetization phenomenon which refers to business built on data and furthermore revenue generated with data and its derivatives. The terminology related to Data Monetization has not stabilized yet and no unambiguous definition was found from the scientific literature. Hence this study aspires to clarify the phenomenon, its definition and terminology. The main research question of this study is following: “What kind of factors are behind of and affect Data Monetization?” In order to answer the previously described question, the definition of Data Monetization is studied as well as the distinct options and measures an organization may take to enable revenue generation with data. Furthermore this study pursues to discover and identify other phenomena that associate with Data Monetization and moreover to recognize different strategic options to implement Data Monetization business. The thesis work was executes as a systematic literature review and literature sources were searched from scientific libraries and databases, such as Scopus and Google Scholar. Since it seems that this topic is not yet studied extensively and hence only few relevant pieces of literature were found, the literature sample was not confined too much. As a result of this study an unambiguous and justifiable definition of Data Monetization was established. Such definition could not be found from the pieces of literature utilized in the systematic literature review. Additionally distinct components and aspects of Data Monetization business were recognized as well as a variety of different business and revenue generation models. From the perspective of Data Monetization it is essential to identify the valuable data and to be able to, if needed, refine and develop it further in order to enable the business transaction which in turn generates revenue. Since Data Monetization can be either indirect or direct and furthermore the organization’s main or supplementary offering, Data Monetization is a multidimensional, diverse and complex phenomenon and form of business. Hence Data Monetization can be executed in variety of ways and it may offer distinct strategic purposes for the organizations.