Businesses across all industries must recognize that the new data economy is upon us, if not already here. And for organizations that haven’t considered the ramifications of a data-sharing revolution, they need to look at how they can future-proof themselves and find ways to leverage new data sources to deliver competitive advantage. We explore four ways businesses can future-proof for the emerging data economy.
Adjusting systems for regulatory compliance
The introduction of open banking, the GDPR and other regulatory frameworks have forced the hand of many organizations to operationalize next-generation governance systems of compliance. This means seeking out ways to not just comply with new regulatory systems, but also take advantage of increased data-sharing opportunities. It’s important to note that there is a significant financial incentive for businesses to recoup their compliance costs. If they are forward-thinking about how they can use data sharing to drive competitive advantage, they will be more likely to innovate useful – and profitable – products for their customers.
Deliver competitive advantage through new data sources
There’s no denying that data sharing is here to stay. Gartner predicts that by 2019, 75% of analytics solutions will incorporate 10 or more exogenous data sources from second-party partners or third-party providers.
For organizations that are able to design new products and services through data insights, the possibilities for innovation are seemingly endless. Yet privacy and consent must remain core tenets while they adjust their systems and leverage the value of new data sources.
Data monetization without increased risk
While monetizing data is nothing for many industries, new regulatory frameworks draw attention to the potential liabilities that may arise should an organization not do their due diligence. As CIO puts it: “Monetizing … data may well be the right decision for your company, but it’s important to recognize that your data may present a massive liability from a legal and security perspective.”
While data-monetization initiatives can boost your bottom line, streamline processes, and allow for the innovation of new products, any such approaches must be measured against the potential risk. It’s prudent to invest in solutions that reduce data-sharing security and privacy risks while providing a platform for the ongoing monetization of your data.
“By 2020, 10% of organizations will have a highly profitable business unit specifically for monetizing information.” — Gartner CDO Report, 2017 
Expand the remit of Chief Data Officer
As data becomes more recognized as a core business asset, perhaps the smartest way to future-proof your position in the new data economy is to invest in your people. We’ve all heard the hype about having an army of Data Scientists, but the real data hero over the next five to 10 years will be the Chief Data Officer (CDO). Due to evolving business needs, challenges, and responsibilities, the CDO must be able to recognize – and react to – modern disruptions while managing the same challenges data-focused executives have always endured.
As Gary Goldberg, CDO at Mizuho International, puts it: “The challenges are the same as they always were: keeping momentum, demonstrating value, and helping to change organizational processes when the business is constantly moving/evolving.”
In the past, data has been seen as an issue for the tech team (under the remit of the Chief Information Officer or Chief Technology Officer) or marketing department. However, the CDO of the future must have the freedom to oversee broader areas including: terms and conditions; content regimes; technology architecture interfaces; API strategies; data-as-an-asset; commercialization strategies; internal data applications; utilization of third-party data sources; and, of course, the customers. The CDO’s overarching goal will be to maintain the right balance between innovation and governance. Maintaining this balance will be key for businesses to seize their place in the emerging data economy.
A technology solution like Data Republic, which provides secure governance and allows for the free flow of information between multiple parties, enables businesses to exchange data and get true insight out of datasets. To future-proof your business and get utility from data, consider Data Republic.