Gartner: Many enterprises ignore the monetary value of customer data

Big data has great potential for enterprises.

Most C-suite types will tell you that they recognize the value of customer data, which can offer unprecedented insights into buyer preferences, desires and motivations.

“The growing wealth of information — from social media, location and context-sensitive data collected from mobile devices and the Internet of Things — is increasing the volume, velocity and variety of that information, radically expanding the scope of the 360-degree customer profile,” says Douglas Laney, vice president and distinguished analyst at research firm Gartner.

But in a recent report titled “How Organizations Can Best Monetize Customer Data,” Gartner argues that many enterprises fail to manage customer data as a corporate asset, thus ignoring that data’s monetary value. Rather, Gartner says, enterprises should manage customer data with the “same discipline as any other corporate asset.”

“Organizations should use valuations of their customer data as the basis for prioritizing investments in technologies that help them acquire, maintain, enrich, archive and apply information,” Laney says. “They should also calculate thorough business cases when designing monetization products.”

Managing customer data as a corporate asset not only will provide enterprise stakeholders a more accurate picture of monetization initiative, Laney says, it also will enable enterprises to offer proof of informational asset value in the event of a merger, acquisition or initial public offering.

Since customer data doesn’t exist in a vacuum, it is important that enterprises “evaluate the associated risks in relation to data ownership and data privacy when developing a business model to monetize customer data,” Gartner says in a press release. “Products should then be designed on the basis of the organization’s level of risk tolerance.”

Extracting full value from customer data requires a meticulous approach and effective governance. The payoff is that enterprises can extract more value from their data assets.

Is your enterprise missing the monetary value of its customer data?

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