Framing a winning

data monetization
strategy
kpmg.com
1 / Framing a winning data monetization strategy

Framing
a winning
data monetization strategy

At many forward looking organizations across

the globe, an immediate and evolving new front
of competitiveness, data monetization, is being
added to the C-Suite and Board agendas.
Highly competitive and innovative companies constantly seek
new competitive grounds and explore new paths to success. The
recent advent of the technological advancements in Big Data and
analytics has paved the road to a new era of competitiveness; an
era where data is viewed strategically and as a living and evolving
asset, an asset that can unleash new opportunities for monetization.
The use of data and analytics to enhance decisions is not new
or novel. The new frontier is exploiting and monetizing data in a
coordinated and organization-wide manner to strategically advance
our competitive advantage; a strategic goal that demands a strategic
approach and framework.
This document offers a dynamic framework for developing a winning
data monetization strategy – a framework that considers the varying data
sources, offers a process for recognition of value, presents applicable
business model options, explores commercialization alternatives and points
to the various challenges to be addressed.

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
 Framing a winning data monetization strategy / 2

Foremost, it is NOT about Principally, it IS about how

information technology or you look at the enterprise as
business intelligence. a LIVING entity and data as
Data monetization is about effective and timely an asset.
exploitation of an ever-growing new class of asset, the
Unlike most corporate assets, data is constantly evolving,
enterprise data, and converting that asset into currency
and it may be both appreciating and depreciating
(profits) by increasing revenues or decreasing costs. It is simultaneously. While historical data may lose value with
true that this asset (data) is generated through deployment of respect to short cycled transactional opportunities, it may
technology; however, monetization of this critical asset is most be gaining value from a trending and long cycle strategic
definitely a business challenge. Technology will help collect, perspective. As an organization operates, it generates data. And
store, and deliver the data; advanced analytics will help explore as its environment and competitors interact and evolve with each
the data and discover strategic and transactional value. But it other and with customers, more and more data is generated.
is a sound strategy, followed by an effective business model, A framework to effectively monetize this constantly changing
which helps the enterprise focus on creating value from data asset (data) must recognize the dynamic nature of the asset.
and analytics, effectively monetize the asset and create a The monetizing assumptions and plans should recognize and
competitive advantage for the enterprise. be responsive to the constantly growing and changing nature of
data as well as how it may be generated and consumed.
Business intelligence (BI) solutions, tools, and dashboards
that deal with packaging and visualizing historical performance A key step towards recognizing the evolving nature of this
data to support decisions are hugely valuable to the day to day fluid, dynamic, and ever-growing asset is to appreciate that the
management of the operations. An effective data monetization organization that generates this asset is also ever-changing
strategy is however not about tools, the underlying and growing. An enterprise that can be viewed as a LIVING
technologies or the tactical management of the enterprise. As organism. An entity that consumes cash and produces services/
an analogy, if we view BI tools and databases as the pipelines products, profits/losses, and waste. Its soul is its culture. Its
and the data as the electricity that flows through it; although an nervous system is the measurement and communications
effective pipeline is important to delivering electricity, it is the network overlaid upon it. The synapses and data contain signals
of opportunities, risks, performance, and efficiencies from
electricity that is monetized (sold) and not the pipeline network.
across the body of the enterprise and from its environment. As
Data monetization strategies are indeed influenced by a “LIVING” entity, the enterprise needs a “living” and exertive
technological capabilities of an enterprise, however the starting strategy that is adaptive to the challenges it constantly faces.
focus for strategy formulation should be on defining the value The evolution of a living entity and its mutation towards an
to the enterprise, the value to its customers, and the potential improved being is a function of how quickly it can sense and
value to third parties in its immediate or adjacent industries. respond to danger (i.e. capture the data, analyze it, and extract
actionable insights from it), as well as how fast it acclimates to
It is about monetizing data or transforming this corporate new sets of challenges (i.e. finding an improved focus for the
asset into currency, profits, and market advantage, and not strategy and a responsive rhythm in execution).
about optimizing servers and databases, data mining, or
dicing and slicing past performance information to support To effectively strategize around leveraging data to its advantage,
tactical decisions. corporate leadership should recognize the fluidity of data across
the enterprise, data’s ability to connect the enterprise together,
and the embedded value contained in the signals it may carry.
Other factors to consider are data’s ever-evolving and changing
characteristics, and its ability to create value as the context of the
evaluation shifts or when placed alongside other data (internal or
external).

So, what is data

monetization
all about?
© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
 3 / Framing a winning data monetization strategy

An effective data monetization strategy recognizes

data as an evolving asset living and growing within
a living enterprise and NOT as a static asset that
depreciates in value.

An enterprise that does not effectively utilize its data assets of material and labor and indirect costs; when valuing data,
can be compared to a living entity with a broken nervous one must not only consider the use case, but also factor in
and sensory system. A living enterprise that suffers from freshness, its value when connected to other data within or
compromised abilities to hear, feel, see, and smell the dangers external to the enterprise, the evolution path (does the value
and opportunities around is vulnerable and disabled. The lack increase over time), etc.
of a working nervous system that can help the brain make
This dynamic and evolving view of an enterprise is the
the right decisions at the “right” time leaves a living entity
foundation of the Exertive Strategy Concept (ESC), a
exposed. The return on data, this unrecognized asset on the
conceptual perspective that facilitates the formulation and
balance sheet, is a superior competitive position that can
execution of dynamic strategies that are powered by data
be shaped based on the intelligence and insight it offers the
analytics. It is an approach that leverages the data assets
enterprise. In the new era of Big Data, this asset can potentially
within and external to the enterprises, recognizes the
provide a very differentiating competitive advantage.
continuous shifts of the competitive forces and the ecosystem,
When arriving at the value of any piece of machinery considers challenges of execution across the value chain, and
one considers utilization; when evaluating liquid assets, examines effectiveness from a “connected enterprise” point of
one considers the annualized returns; when pricing real view balancing growth, risk, and efficiency. Data Monetization
estate assets, one accounts for occupancy rates as well as strategies are most effective when conceived through an
maintenance factors and market dynamics; when assessing Exertive Strategy Concept lens and executed with a dynamic
value of inventory, it may be a function of market or a rollup framework and mindset.

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
 Framing a winning data monetization strategy / 4

Fundamentally, it is about enhancing

competitiveness, achieving clear differentiation,
and making MORE money.
What’s your business model?” or “How do you plan to make money?” is a fundamental question
that must be addressed as we begin to shape an effective data monetization strategy. Thinking
about various possible business models often is an excellent starting point to frame
the alternatives available for monetization. This initial organizing filter provides the ability to
categorize the monetization alternatives and distinguish the ultimate applications. It can help answer
questions such as: “Is the definition of monetization selling data to external buyers?” or “Are we
defining monetization as better use of the data assets to improve our transactional performance in
customer acquisition, fraud detection, and loss control?” or “Are we using the data to differentiate
our products and services which would lead to brand loyalty?” or “Are we helping our customers with
benchmarking data, improved experience, and possibly premium services?”

An effective data monetization strategy is

not the sum of a series of data and analytics
driven initiatives designed to enhance
revenues or reduce risks.

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
5 / Framing a winning data monetization strategy

There are four commonly applied business models for B. Premium Service Model
monetization. Often, a comprehensive data monetization
Achieving monetization through a “Premium Service Model”
strategy includes deployment of multiple business models in
requires the data to be processed or transformed to the point of
order to effectively serve specific internal constituents and/or
end-user consumption, with the value proposition crystallized
external customers.
and the value exchange formula well defined.
A. Return On Advantage Model
Most often a premium service model includes delivery of value
Most of today’s enterprises apply data analytics and define to end users through software as a service (SaaS) mechanism
data monetization, through a “return on advantage model,” or interface; where the customers can access the data products
where an organization uses its internal performance data, and via a portal in exchange for a monthly or annual subscription fee.
at times triangulates with external demographics information, Examples of this model include health or sports performance
to create an advantage for the enterprise. Common examples information aggregated through wearable devices (e.g., Nike
of this business or monetization model include initiatives fitness monitoring device) are provided back to customers for
centered around: an additional fee. Telecommunication companies providing the
i) Customer targeting: using purchase patterns to identify individual usage information back to the user via mobile devices,
product and buyer clusters that have an affinity to purchase or aggregated usage data to another business for a fee to access
more or are at risk of going to a competitor, as well as privatized data through a site/portal may be another example of
identify opportunities to cross-sell or up-sell, and possible monetizing through a Premium Service Model. Under this model,
modifications to online content delivery to improve the data is monetized through a fee based premium (a level above
conversion. The monetization in this case is to gain an normal) service to direct customers or by a subscription fee paid
advantage over competitors by selling more of the same or by other interested parties (none-direct customer) accessing a
compatible products more effectively, and the return on that service portal. Monetization under a standard premium service
advantage is realized most often when revenues are increased model is usually fee-based online access and returns are directly
or margins enhanced. linked to incremental revenue generation.

ii) Risk mitigation and fraud detection: using patterns of system C. Differentiator Model
access and purchases mapped against external credit data The “differentiator monetization model” is utilized where the
and geo data to identify what the characteristics of the risk
return on the data asset or the means of monetization is the
prone accounts or situations are, and then discovering who
differentiation gained through delivery of the data or derived
those customers are today or profiling potential customers
benchmarks for no additional fees to the customers in order to
coming in that would fall within that population. Additionally,
secure their loyalty. Under a differentiator model the delivery of
based on patterns, identifying specific fraud opportunities or
service or value to the customer may be similar to a premium
fraudulent events in progress. The monetization in this case
service model, the fee, however, is set at zero to negligible to
is to reduce loss and all the operational cost associated with
customer. Monetization under a differentiator model is basically
it all the way through the value chain, therefore creating an
through building brand loyalty or developing compelling value
advantage over competitors and generating a return on the
add services that may serve as switching barriers. In other
data assets.
words, the customer receives the additional or premium service
without paying for it, in anticipation that the said additional
services will differentiate the company and somehow enhance
the brand or create loyalty, leading to a monetization scheme
that is difficult to measure and clearly quantify.
D. Syndication Model
A “syndication model” is often used where data in a transformed
manner (usually not raw data) is delivered to third‑party entities.
They would then use it for their own analytics purpose or for
research in their various planning activities or product/service
development efforts. The client/buyer can sign up to receive
a syndicated data feed (raw data delivered via some sort of
digital means—e.g., API) or preassembled reports. The data
asset owner is monetizing through recurring income-generated
transactions from selling the same set of data over and over or by
selling reports on a recurring or ad-hoc basis. For example, most
research organizations (i.e. IMS, Neilson, NPS, and IRI) follow this
monetization model.

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
 Framing a winning data monetization strategy / 6

And, it is about framing the value our data contains,

balancing the expanded view of opportunities with
a laser-focused perspective of tactical value delivery
options.
The journey from raw data to insight is not a straight line. The trip requires an inquisitive mind and a
disciplined approach: inquisitive, so that side roads may be explored and relationships that are not obvious
can be discovered; and disciplined, so that one does not get lost along the way. As you explore building
your data monetization strategy and approach, there are four Critical Discovery Concepts
that deserve special attention. The critical discovery concepts of Aggregation, Triangulation, Privacy
Preservation, and Frame of Reference help to expand perspective and explore data assets independently or
in conjunction with other external or third-party data in order to discover compelling value.

Critical Discovery Concepts

Aggregation Triangulation

Analyses of aggregated data are most Powerful technique that facilitates

often central to the identification of key validation of data and verifying insights
data analytic signals. Patterns, shifts, through cross-verification from two or
pivots, and anomalies become crystallized more sources. New data sources may
and observable where data is aggregated be created with this method, including a
by various dimensions and explored “1+1=3” greater sum phenomenon that
from different perspectives or frames of is achieved when data is combined and
reference. correlated in unique ways.

Frame of reference Privacy preservation

The insight that can be extracted is a There needs to be a balance between

direct function of the perspective of the risk control and value preservation. Often
comparisons and exploration that is applied tactical data monetization initiatives
to the situation. Look at a coffee cup from struggle when data privatization factors
a direction and you may see the logo of are considered. This dilemma is amplified
the store. Turn it or change your frame when data monetization is treated as
of reference, and you may see the name only a “transactional” driven opportunity.
of the individual who ordered the cup on Broadening your view may help discover
the other side. Changing your frame of high value opportunities with reduced risks.
reference adds to the depth of the insight
that can be considered.

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
7 / Framing a winning data monetization strategy

To create focus, it is important to categorize (filter) the type of value we aim to deliver to user/consumer/
buyer by the nature of their contribution. The additional value contribution filtering often helps fine
tune the monetization strategy and further focus the value proposition to users. The clarity of the
ultimate value contribution (purpose of use) provides an important context in defining what the exchange
rate is between an organization’s data driven products and the value they have for either internal or external
users—the critical exchange between value delivered and the level of acceptable monetization.
There are two main Value Contributors:
i) Performance contributors, where the purpose of value delivery is to contribute to and help improve
performance (i.e. the organization, its clients, or third-party buyers) through applications such as
benchmarking or constraint-based optimization that can be grouped by risk, growth, and efficiency
implications. Performance contributors generally offer value through answering the question “how well
are we doing?” and analytics driven and most likely industry centric context (e.g. Benchmarks) to the
“compared to what?” paradox.
ii) Predictive contributors, where the data delivered is designed to be a predictive signal and intended in
general to be used as an input to another model or a guide for more qualitative decision making process—
such as weather data and its use in retail sales prediction applications, or an individual’s driving data
captured through signals coming from a connected vehicle impacting his/her insurance rates.
The performance contributors focus on the “compared to what” questions. For example, the data
provided to external third-party buyers or customers that address how the organization, or its customers,
are doing with respect to certain key performance indicators such as collections, network coverage,
quality measures, etc.—a benchmarking view with targets and cross-industry performance metrics.
The Predictive contributors, on the other hand, deal with capturing and delivering signals that point to an
outcome—defined or measurable KPIs that lead other important outcome variable. The monetization value
of the contributors and the use widely varies by changing the customer group (to whom that insight or data
product is delivered to). For example, a leading indicator to retail sales on store level may have a value of X
where a leading indicator to specific retail indices or company stock prices may have a value of Y. In other
words, application and use case of data products impacts the value and hence the level of monetization.
Therefore, another important layer of evaluation or perspective to consider as you shape your monetization
strategy is the “Delivery Focus” from a perspective of market and use. The delivery focus provides an
added dimension to timeliness needs, to privatization requirements, to level of aggregation, to the extent
of data reusability and buyer propensity to buy, and ultimately, to the price versus value equation. This
perspective is particularly important when external monetization of data is contemplated.
In addition to internal use of data to gain a tactical advantage and offering data products for a fee
or as a differentiator to our direct customers, it is critical to explore commercialization through a
vertical, horizontal or cross markets value delivery focus:

1 Vertical value delivery, where value is delivered and data solutions are tailored to
specific industries (e.g., prescription data for the pharmaceutical companies).

2
Horizontal value delivery, where the same set of data products may be valuable in
similar form and format to various industries with similar needs (e.g., economic
indices and indicators are used to project retail sales also used for real estate pricing).

3
Cross-market value delivery, where data that is collected for one purpose
in one industry is valuable for another purpose in another, often adjacent,
industry (e.g., good driver signals captured from vehicles and used for
insurance pricing is also valuable for pricing car lease rates).

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
 Framing a winning data monetization strategy / 8

And, it is about being inclusive without boiling

the ocean.
“There is way too much data to consume, it is coming fast and from too many directions, hard to digest”
are very valid concerns most executives offer when considering a data monetization initiative. As a
consequence, most folks quickly sway towards the famous “low-hanging fruit” and risk converging to the
lowest common denominator of value.
Yes, it is absolutely futile to boil the ocean of data, but a systematic approach can help organizations explore
without exhausting their resources, and converge towards alternative data monetization opportunities,
based on value delivered to organizations and their customers, as well as to potential external buyers (if that
is a viable monetization scenario).
The first step is to recognize the types and sources of data to work with – essentially the raw material
needed to extract value from.

There are generally four types of data to be considered:

Unstructured Structured
internal internal

(e.g., customer relationship (e.g., financial, production,

management textual data as well distribution, sales and delivery,
as maintenance logs, and emails) adoption rates, clicks and
conversion data)

Unstructured Structured
external external

(e.g., news, analyst reports, blog (e.g., syndicated industry data,

and social media data) as well as demographics and
public market performance)

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
 9 / Framing a winning data monetization strategy

The greatest value is most often discovered when various

data types are explored in relationship to each other.

The next step in this journey of converging to compelling value is to organize the data (or signal
source) based on the manner they glue the organization together or connect the organization to
its environment (data buckets):

1 Enterprise performance indicators/signals

2 Enterprise capability indicators

3 Market dynamics indictors relating to competitive forces

4 Ecosystem indicators

These data buckets can also be classified as Internal Performance Data, Customer or Client
Generated Data, and Collaborative Public and Privately Sourced (acquired) Data.
It is the interaction of these signals (information hidden in data) that ultimately point to insights or value that
can be monetized either by the enterprise, by its customers, or by other third-party buyers.
Before an exhaustive but very focused and time-bound/resource-bound exploration can be initiated, it is
also critical to map the available data and the sources to the value chain and explore the interconnections.
The basic thesis is that data and the signals hidden in it connect the organization together—the nervous
system of the “living” enterprise that carries the signals of opportunities and risk.
The systematic approach to identifying data sources, classifying them based on impact and contribution,
and overlaying them on an organization value delivery map (the data genome map) provides the foundation
for converging to high-value monetization strategic scenarios.

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
 Framing a winning data monetization strategy / 10

And, it is about recognizing the value of the

“GOOD” at hand versus the illusive “PERFECT” and
dealing with technology-driven challenges.
Too often, there are technology-related challenges that act as roadblocks to obtaining the helpful insights
that could lead to an improved competitive position or effectively monetizing data in a timely manner.
Some of the typical Technology Challenges include:
• Data overload, and having data that is too widely distributed are common impediments to data
monetization initiatives—an organization waits for the new infrastructure and compromises on possible
competitive opportunities.
• Data access, from a consistency and formatting perspective, is also a common roadblock. Similarly,
there is the challenge of getting the right data, in a format that is consistent and useful. If gold were easy
to mine, it would not be so valuable – but, incrementally accumulating wealth from our data assets is a
viable option as well.
• Data cleansing is a never-ending challenge that will exist as long as an enterprise creates new data or
essentially as long as it exists. This is a challenge that is even more articulated in the era of unstructured
data. Getting insightful signals begins with the quality of the data. However, the reality is that we don’t
control all the data sources and data tends to get contaminated along the way.
• Data scalability, is critical not only from collection and storage (warehousing) perspective, but also from
speed of digestion and processing, access and security, as it is gathered, stored, consumed and last but
not least delivery to end user customers (internal and external). Challenges that are real and grow as data
gets bigger (volume) and more complex (variety and velocity).
The keys to success are: 1) recognize that these issues are not just yours (the misery-loves-company argument),
2) those who find a way to go around or overcome the challenges faster have a real opportunity to enhance
their competitive position through monetizing the data, and 3) an enterprise is a living entity competing with
others in an ever-changing environment, where today’s perfect solution is most likely the imperfect solution for
tomorrow. Recognize that you will never have perfect data, complete data, enough time to be exhaustive, or the
perfect monetization model. Although a plan for data monetization may be revolutionary, execution should be
evolutionary and focused on incremental value creation guided by an overarching data monetization strategy.
In short, technology and its inherent and ever-evolving challenges may influence our perceived capabilities, but
should not define our strategies and the dimensions of the competitive advantage we can gain through data
monetization. Data monetization is a strategic business initiative and not an IT project.

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
11 / Framing a winning data monetization strategy

And, it is about the enrichment road map, the evolving asset

value, the capture and dissemination economics, and a lot more.
In the process of developing an effective data monetization • Asset value determination/tax and financing
strategy there are a number of other factors that are important implications: An important but often ignored factor
to consider. The non-technology-driven challenges and in monetizing data is the potential complications and
factors to consider include: opportunities that can be faced or explored by treating data
as an asset (particularly if it is packaged to be to be delivered
• Enrichment road map: Data is perishable and in a living
as a premium service to direct clients or syndicated to third-
corporate environment its value fluctuates. It is important
party buyers). Are there any special treatments required in
to examine the road map for keeping the data fresh and
revenue recognition? How would you treat the asset on the
the analytics relevant. Embracing a continuous discovery
balance sheet? Are there tax implications with respect to
mind-set is also critical to finding the unknowns that lead to
syndication or SaaS models? What are the challenges with
value recognition and enhanced monetization. Additionally,
global distribution?
as the monetization strategy is formulated, it is critical to
fully understand how the data is captured (online, mobile, • Partnerships & organization structures: There are two
from the Internet of Things or devices, etc.) and how it could critical partnership paths when it comes to executing an
be enhanced or enriched. The aim should be to actively and effective data monetization strategy.
continually increase the value of data assets.
First, the “data collaborators” who add value to the
• Capture and dissemination economics: Like any other organization’s data in order to increase the ultimate value
product, there is a cost to the raw material, a cost to add to the end user. Examples of collaborators include research
value, and a cost to deliver and support. There is a cost to companies that provide data series around consumer
capture the data in the right form and format, and a cost demographics, spend patterns, drug use, specific markets
to perform the right level of analytics to cure the data to the like consumer goods product purchase patterns, etc. By
point it can be monetized. These costs, alongside the cost to combining our data with theirs, in most cases the value
disseminate the data to the point of use or purchase (if data of the combined or triangulated data increases. If the
is being sold to external sources or commercialized) should monetization is entirely internal, you can consider these
be evaluated against the contemplated return as well as partners as data providers or data vendors. These partners
consistency and replicability of those intangible or tangible become data collaborators when some sort of business
benefits. The big difference between a focused analytics relationship such as revenue share is considered in
exercise (rather common in any planning or evaluation formulating the economics of the monetization alternatives
initiative) and data monetization is considering recurring (if the data is monetized externally). The next set of potential
income or benefit in the evaluation of value. partners act as distribution channels. Oftentimes if an
organization is not in the business of externally monetizing
• Network effect & natural barriers: When the focus of
data, it might be appropriate to use third-party players who
the data monetization strategy is around third-party sales
have established channels within a particular industry to act
and/or delivery to our clients, it is critical to consider the
as the distribution channel. For example, an organization
potential network effect. For example, if a development
may be able to create certain indices that may be valuable
company is using real-estate valuation data from a data
to the stock market and to those who are in the hedge
provider and has built predictive or evaluation models around
fund business; Unless their entity is prepared to develop
that data, it is extremely difficult for them to switch to a
an organization around sales of data with the proper
different provider. Another example may be TV rating data
performance framework and organization support, it might
used by every studio, brand, and advertising executive—the
be an easier go-to-market strategy to utilize channel partners
prevalent use by one industry has persuaded the rest of
that sell other kinds of data, such as derivatives or bond
the industries connected to that industry to also rely on the
information, to the same market.
same data, therefore creating a network of users that cannot
easily switch to a different data provider, building natural
competitive barriers to entry.
© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
 Framing a winning data monetization strategy / 12

Finally, it is about prioritization, culture, and commitment, as

much as it is about a systematic approach.
There is more to formulating an effective data monetization strategy that delivers sustainable competitive advantage than hiring a
few data scientists and using data to improve sales and marketing performance.
Framing an effective strategy begins with an understanding of the living nature of an organization and the data that resides within
it, continues with an acknowledgement that data monetization is not an IT or business intelligence focused activity and that the
process like any other strategy formulation and execution effort should help the leadership narrow its alternatives and develop an
enterprise-wide focus on the most compelling and achievable competitive advantage.
Formulation of strategic alternatives or data monetization scenarios begins with a first level ideation process, where technology,
business and execution factors are considered in a systematic manner. As the key considerations are captured and evaluated a
prioritized set of alternatives surface for further consideration. The diagram below depicts an approach to ideating, documenting and
evaluating monetization scenarios across various dimensions. The ideation and prioritization process is a must-do activity that helps
us narrow the art of possible to the domain of feasible and high probability; the domain of ideas that deserve further investigation.

Data Monetization Scenarios

Technology Business
Factors Factors
Unstructed/Structured Source Value to Buyer (H/M/L)
Exaction Challenge (H/M/L) First Level Tactical Optimization Value
Data Source (IP/CG/Collab.) Ideation Vertical Focus (One/Many)
Formating & Consistency Index Value
Challenges Buyer Target
Data Type (Int/ext/mix) Differentation Value
OTHER Triangulation Opportunity
Delivery (on-line/Synd./Rep)
Execution
Predictive vs. Performance Cont.
Factors
Cost to Value Recognition
Speed to Value Recognition
OTHER

Privacy Flag
Partner Opportunity
Priority (H/M/L)
Enrichment Roadmap (Easy/Hard)
Network Effect Opportunity
OTHER

In summary, an effective data monetization strategy is constructed on a fundamental belief that data is an evolving asset and as
such requires a more dynamic and evolving framework for monetization. Where monetization is considered the transformation
of an asset (data) into currency or profits, the definition of currency or profit may vary depending on the business model to adopt;
ranging from capitalizing on a tactical advantage to reaping the benefits of being differentiated in the market and creating a barrier
to entry, to offering premium services impacting revenues or commercializing some variations of our data though syndication.
An effective data monetization strategy should consider the expanded data products or monetization opportunities by exploring

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
13 / Framing a winning data monetization strategy

various internal or external as well as structured and unstructured data types. In addition to an internal value generation and
monetization perspective, the strategy should also consider commercialization opportunities, the value of the solutions or
products generated through a lens of contribution (performance vs. predictive) and the ultimate user, our organization or others
(in a particular vertical, across various industries horizontally or cross markets). Data monetization strategies are influenced by the
very real technological challenges the enterprise faces but these challenges should not be the driver of the strategy, but viewed
as obstacles that can be overcome in increments, challenges that may impact priorities but should not shape an organization’s
future. An effective monetization strategy should clearly factor in the business challenges and opportunities offered by the
economics of data capture, processing, and dissemination and be influenced by critical decision elements such as partnering,
distribution channels, asset value and tax implications, etc.
The diagram below provides a graphical representation of the various factors and perspectives to consider as you
shape your strategies.

Other Probabilistic shape Scenarios & Dynamic Strategy Execution

Factors Strategies
of the Future Expectations Valuation Metrics Framework

Asset Broad

i) Too much data/Too distributed – wait for a new infrastructure; ii) Access to data – consistency & formatting;
Differentiators, Syndication
Value, Return on Advantage – Premium
TAX
Business Loyalty Contribution Feeds, Reports &
Tactical gain Services
Financing Models & Adoption Enhancer online stores
Data Genome: Discover connectivity & value

iii) Data cleansing, Scalability – depending on Audience & access purpose

Distribution Delivery Vertical Value Delivery (cut Cross Market Value delivery Horizontal Value Delivery
Channels Focus to serve a specific industry) (one industry/to another) (multipurpose indices)

Performance Contributors Predictive Contributors

VALUE
Partnerships compared to what insights Driving Signals (US &
CONTRIBUTERS

Technology Driven Challenges

(Growth, risk & Efficiency) THEM)

Capture &
Internal Client Collaborative
Dissemination DATA SOURCES
Economics Performance Generated Public & Private

Unstructured Internal (e.g., CRM, Unstructured External (news/social media –

customer generated) as a triangulation source)
TYPES
DATA

Enrichment
Roadmap
Structured External (syndicators by
Structured Internal (numbers: financial,
industry, public market performance, etc.
delivery, adoption rates, clicks, etc.)
as a triangulation source)

Key Factors (Critical Discovery Concepts

Network
Effect Triangulation Aggregation Privacy preservation Frame of Reference
(1+1=3) (strategic vs. (Risk control vs. value (shifting the view for
transactional value) preservation value extraction)

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 Framing a winning data monetization strategy / 14

In conclusion, effective data monetization is as

much about strategy as it is about execution
AND it is as much about where to go as it IS
about where to start.
The success of any strategy depends on effective execution, and data monetization
strategies are not any different. Without the right level of executive attention, commitment,
and priority assignment, and in absence of the right culture and organization, the scope and
degree of success will with a reasonable level of certainty, be compromised.
The framework for a winning data monetization strategy needs to be dynamic and
evolving (just as data itself is dynamic and evolving), but the commitment to winning
through the use of data and analytics across our existing value delivery process, as well
as new innovative commercialization scenarios in a strategic manner, should be rather
solid and unwavering.
The first step on the journey to frame a winning data monetization strategy is to
assess your current state and your organization’s resolve. To this end, ask your
organization to differentiate among data-driven decision making, tactical analytics
activities, and comprehensive strategies that focus on gaining a sustainable
competitive advantage. Challenge your organization to brainstorm the following
assessment questions in a cross-functional manner.
• Are we leveraging our data assets to create a sustainable competitive
advantage?
• If we are not waiting for the perfect product, the flawless supply
chain, the unblemished market dynamics to use the rest of our
corporate assets and capabilities to compete and excel, why are
we waiting for the perfect data?
• Do we have a systematic way to identify the value centric data
monetization strategies and to evaluate and prioritize the
feasible scenarios?

© 2015 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Contact us
Sid Mohasseb
Managing Director, KPMG in the US
T: 949-885-5625
E: [email protected]

kpmg.com/strategy

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Publication name: Framing a winning data monetization strategy
Publication number: 132669e-G
Publication date: September 2015