Determine a company’s data monetization platform and the power of blockchain in contributing to new business models with akaChain.
Data is the ever-growing asset of a business. With proper strategy, companies can ultimately reap more profit in every move because all business activities generate data. However, many companies are still showing much confusion with making money with data.
Blockchain technology is becoming a potential tool for businesses to build data monetization models. A data monetization platform on blockchain not only improves the drawbacks of existing data extraction methods but also has the potential to drive new business models.
3 ways to exploit the data potential that blockchain-baked data monetization platforms can improve
Improve internal business processes and decisions:
With data-based insights and clear decision rules, companies can provide more meaningful services that better assess and address customer needs, while improving the process of creating and delivering your products or services.
Businesses need to define their data collection channels to determine their data sources. However, corporate input data is often placed in too many different systems to extend interaction points with customers. This data fragmentation makes it difficult for businesses to aggregate and control data efficiently.
The blockchain-baked data monetization platform creates new integrated customer systems that can get a holistic view of customer interactions with the company. These interactions include what customers bought, the problems they encountered, and how the company is responding to customers.
With this one-point control system, companies can save time on each manual search and data preparation operation. At the same time, this system also helps employees to manage the flow of customers and their work more accurately. By aggregating and calculating the success rate of a business opportunity, this system allows employees to know where potential customers are for the company and prioritizes dealing with these cases first.
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In general, in this case, blockchain is profitable for the business in two ways:
- Customer targeting: based on collected data, companies identify groups of leads or groups that are at risk of switching to competitors, or cross-sell/up-sell opportunities. This method increases profits by increasing the number of goods sold, growing sales.
- Risk mitigation and fraud detection: Evaluate the characteristics of accounts, in case of signs of fraud, identify high-risk situations. This approach increases profits by reducing losses, operating costs along the value chain, and creating a competitive advantage.
Provide the information package about products/services:
Building brand loyalty through developing engaging add-on services can also act as a conversion barrier to customers.
Using the collected information, the company can provide customers with information related to the products they are using. This solution will help increase the value of products to use outstanding significance when combining reports, warnings, and information about products and users. (e.g. health tracker products, credit services).
With the predefined conditions, the smart contract on the blockchain will help to perform this service automatically, as soon as the requirements are met.
Also, companies should ensure that the quality of these add-ons and services is on par with their core products. Most companies are lacking the ability to manage and provide data and analysis in this way. The information in this bundled service may even reveal limitations on the quality of the company’s core products.
Using blockchain to control the quality of input data will provide quality raw materials for the analysis. From there, businesses will make better decisions about the limits and types of information and services that can be provided. The personalization of these services will also become more efficient as the input data is accurate and is no longer general information.
Jump in the data buying and selling market
Companies with large customer files and rich customer data pools are eager to sell their companies’ data. Expanding the information business could create a new source of revenue for their companies.
However, the information business model will differ greatly from the company’s current products and services. The client file will also be different from the existing client file.
Trading information must involve many sensitive elements of data privacy and privacy rights. Meanwhile, the data marketplace currently contains much fuzziness and lack of accountability. MIT Sloan research shows that only about a quarter of companies give employees and customers easy access to the data they need most.
Many users are affected by this lack of transparency in the data marketplace. For example, many people found out that they already have online accounts at the banks even when they have never registered to open an account at this bank before. When identity management and verification mechanisms are not in place, stories of bad actors exploiting customer information to commit fraud and fraud will occur more frequently.
Robust verification techniques from the e-KYC blockchain solution facilitate data validation and detailed information verification from trusted data warehouses.
In the blockchain environment, the company can act as an intermediary for existing customers to monetize their data. Companies will consult users in advance about providing data in exchange for a fee. Users must always know how their data is being used, for what purpose.
Blockchain can affect a data monetization platform through some solutions, such as customer experience/loyalty programs, e-KYC, Digital ID, and Traceability. The efficiency of the blockchain-backed data monetization platform depends on its ability to ensure data quality compliance guidelines.
Compliance principles and blockchain’s impact on data monetization platforms
Data must gain the following requirements for companies to earn more money:
- Sufficient accuracy and reliability
- Are related to the purpose of use and under business needs
- Be processed and segmented
- Always ensure the confidentiality and privacy of data
The above conditions are necessary for the data business model to maintain customer trust and avoid legal troubles. Blockchain has a positive impact on data monetization platform in the following ways:
- Authorization: The customer decides who will be able to access the data and prevents unauthorized persons from accessing it.
- Encryption: The data will be protected by a digital layer of protection and cannot be read in the event of a theft. Only those with privileges can perform this encryption when storing, accessing, or transferring data.
- Tokenization: Redefining the real information of a transaction without personal data on the blockchain. It keeps sensitive information secure at all times and makes transactions more flexible and faster with automated mechanisms.
Monetizing data is a value-adding business model with plenty of growing space
According to Grand View Research’s report, the global data monetization market size is expected to reach $7.34 billion by 2027, reaching a CAGR of 24.1% between 2020 and 2027.
Strategies for monetizing data start with defining value to businesses, customers, and other partners. To make money effectively, companies today can combine many business models to optimize their resources.
The technical capacity of the business will be a supporting tool to help enterprises convert their value from these ever-increasing assets into money, profits, and market advantage. Blockchain technology for secure data storage will be a powerful support tool to develop data monetization platforms.
Educating customers about monetizing their data is also very important. With a more open and precise perspective about monetizing data, users are also more willing to share their wishes. It is also a competitive advantage when a company can give the impression of how it adds value to its customers.
akaChain, one of the leading enterprise blockchain platforms, provides BaaS (Blockchain-as-a-Service) solutions to help companies to manage and use their information more efficiently and monetize them.
What is the potential for data monetization of your business? Contact exchange with akaChain immediately, or leave your contact information, and we will get back to you as soon as possible.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since Establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/.
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