Book Image

The New Oil: Using Innovative Business Models to turn Data Into Profit

By : Arent van 't Spijker
Book Image

The New Oil: Using Innovative Business Models to turn Data Into Profit

By: Arent van 't Spijker

Overview of this book

Data, at present, has become one of the most valuable resources, driving our economy by impacting every single industry in today’s global market. This book is all about how data plays a dominant role in making crucial business decisions. The book begins with an introduction to the variation of business trends through the course of time and the factors involved. You will study the three major drivers of change, including the connected economy, the internet of things, and the co-creation. Once you know how and why the market shifts, you will understand the data’s significance and how it became a key asset for the majority of firms to facilitate accurate business decisions. In the concluding chapters, you will learn how companies achieve data-driven strategy implementation through its four crucial characteristics. By the end of this book, you will have thoroughly explored the potential of big data and developed a possible approach to monetize it.
Table of Contents (4 chapters)

11 - Pattern 4:
Value Chain Integration

How data defines common ground between customers and suppliers

Monetizing data is not limited to selling data to a third party for hard currency. One different way to monetize data is by sharing it with partners in order to save on expenses. The savings and rewards can be impressive. To reap these benefits, however, companies will need to display trust and a willingness to settle payments through the exchange of data. The predisposition for monetizing data in this way is the recognition that the parties involved are part of the same value chain. As I will show in this chapter, that predisposition does not just include two companies in a direct vendor/customer relationship. Monetizing data through Value Chain Integration can cover any number of links to save money.

Michael Porter first introduced the concept of the ‘value chain’ in 1985.27 Initially, Porter described a chain of events within an organization in which value was...