By Cristiane Mirna Machado*
I don’t know if all, but most readers of this article have already heard about Serra Pelada, a gold mine located in the State of Pará that was so explored (or rather, poorly explored) in the decade of 1024, when the region was invaded by thousands of people in search of quick enrichment through gold. The area became the largest open-pit mine in the world and thousands of tons of gold were removed in the hope of enriching the miners, which, in practice, did not happen until the official closure of the region in 506891.
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Although the metal continues to be valued, the Today’s “gold” has another name: dice. Unlike what happened in Serra Pelada, this one only tends to grow exponentially. In general, companies are data companies, that is, they have a substantial amount of unexplored, underutilized data that can certainly represent a great financial value within the organization and for other companies. Being able to generate a positive impact on business revenue through the use of this data is what is called data monetization.
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With the implementation of the General Data Protection Law (LGPD), companies they had to adapt to the new rules in order to protect their customers’ sensitive information and, at the same time, show paths and generate insights for the business. In principle, we have two ways to increase revenue using data: indirect or direct monetization. But what’s the difference and how does it work? You can monetize using insights to improve your business operations and services (indirect) or create a supplemental revenue stream by providing access to your data (direct).
Adding value to your own operations does not mean “sell” information to someone else (Image: Envato / LightFieldStudios)
Regardless of the model, you can impact financial results without the data ever leaving your company. Adding value to your own operations does not mean “sell” information to someone else. In the indirect model, corporations can gather insights about their business and their customers to make changes that create a measurable impact. If it cannot measure the impact of actions taken based on information, the company is not monetizing its own data. At this moment, creativity and data mining are crucial to give visibility to all information that can lead to new routes, reduce risks, expand actions and build trust.
Consider “direct ” like “convert directly to recipe”. Yes, a company can monetize raw data if it has a large amount of it and is willing to navigate the complexity of privacy policies and bureaucracy, which varies from country to country. But direct data monetization is much broader than that. A company can give access to other companies to select data segments or just some insights from analytics.
The advantage of directly monetizing data is that you can use it as an asset and create a revenue stream. The applications are endless, but it must be borne in mind that data privacy is an important issue, as any kind of infringement can ruin a brand’s reputation. It is necessary to structure the environment so that this new gold mine can bring many fruits, without causing damage as it happened in Serra Pelada.
*Cristiane Mirna Machado is director of Products and Alliances of Scala, a company of the Stefanini Group specialized in the implementation of technological approaches aimed at the clients’ businesses.
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