Data as a basis for value creation for business and process

Data is present all around us nowadays. These data is invaluable for a company. More people and more machines constantly generate larger amounts of data and technologies for storage, analysis and knowledge processing are freely available and evolve quickly. Money can be made and saved by collecting, accumulating, analysing, using and (re)selling of data.

All kinds of data can be valuable in several ways to companies. There are lots of ways to apply data analysis within a company.

Internal use of data

Internal data, for example received from machines by technologies like sensors, communication and data storage, can be used to continuously monitor the operation of these machines. However, often the huge amount of collected data is not fully used. Maintenance staff mainly uses the data to verify whether the machine runs correctly or as heuristic to find errors after they have occurred.

Some leading companies are already checking how these data can be used in a more advanced way, because they want to switch, for example, from reactive to proactive maintenance. This is usually done separately for each machine, but at the level of a complete fleet of machines, usually an enormous potential remains unexploited: a particular machine can operate well within its operational limits, but at the same time perform poorer than others due to, for example, misconfiguration or sudden failure. By taking into account the performance of one machine compared to the entire park, we can extract more detailed and accurate knowledge.

Not only in production data can be interesting within a company, but also the internal processes and the organisation benefit from the use of the data generated.

Generate value with data for product or service

In addition to the application of data analysis to gain insight and improve processes, generated data can also be used to add value to products and services.

After all, the worlds of hardware and software are increasingly converging towards each other: hardware manufacturers are expanding their products with digital functionalities and software developers are also making the link with physical products. Adding sensors, intelligence (local processors, algorithms, data analysis) and connectivity (with other devices, with the Internet) to a product creates a whole range of new possibilities. Today, anyone who wants to make a product smart and connected can make use of many available building blocks that can be integrated with a limited cost and development time.

Data-driven business model

The data present in companies can also have value for other organisations within the sector or beyond.

For example, data is the main source for data-driven business models. This can be (a combination of) data that is already owned by the company, but not yet fully utilised, data specifically collected for this purpose, data purchased from other sources or freely available (open source, web-crawled) data.

New business models can be created by combining, analysing, visualising and delivering different data sources. This may create new services for existing or new customer segments. This is done by collecting and combining data from a domain (e. g. on money matters, mobility or health) and providing insights based on these data, or by using the data to make the match between customer and provider (e. g. travel or dating). Value can be captured via a subscription or marketplace model, traditional licenses, etc.

The main reason for developing data-driven business models is to unlock additional value in data assets. These data-intensive models are more difficult to copy and their value grows over time by adding more data and gaining new insights. 

Do you want to know how data value can be generated for your product, process or business model? Come and get inspiration at the presentation of the ‘Digital Journey Tracker’ by Sirris and Agoria on 5 December. 

Digital Journey Questionnaire: How digital is your company (already)?
Is digitisation an issue for your company? And what impact would it have on your business processes? Agoria and Sirris would like to see how far your company has come in terms of digitisation. The results will be presented on 5 December during the 'Outsmarting Digitisation Together' event.
Click here for the questionnaire. (in Dutch/French)