Selling data expertise

What is the challenge?

Collecting and processing a wide variety of data can add different value to companies. However, efficient data management is resource-intensive for all companies. Implementing different usage ideas in the context of digital transformation can be time-consuming and complex. A good way of creating new entrepreneurial advantages here can be to offer the data-based expertise already achieved to other companies which, for their part, cannot access the data-based expertise themselves due to resource constraints.

What data can help?

• Sensor or machine data for insights into manufacturing processes
• Anonymized or aggregated personal customer data for insights into optimized customer communication

How can companies use their data?

The benefit arises for the offering companies in the achievement of new revenue streams and consolidation of their own experience values in the intelligent use of data. Meanwhile, there are more and more companies that have defined the sale of expertise in data processing as their core business. In turn, the companies in demand are offered benefits in the form of data-based know-how, the acquisition of which is cheaper (at least in the short term) than generating it themselves. 

Where is this use of data already being applied?

The strategy consultancy and data agency Companion has big data expertise and offers companies data-based optimization of content and marketing.

The management consultancy Gepro sells its customers consulting services to optimize processes in large-diameter pipe production. Process mining methods form the basis of the data-based consulting service.

The electrical engineering company Schneider Electric sells data-based expertise as part of new services (consultations), for example as a field service by carrying out consulting projects to optimize electrical systems.

The online retailer Amazon gives its marketplace merchants recommendations on how demand for a particular product will develop at a particular time based on past transaction data and current trends. 

How does this use of data contribute to value creation?

In addition to traditional business models, companies can expand their range of services to include data-based expertise and the sale of this expertise, thereby generating new value creation.

Sources: companion Strategieberatung GmbH (2020), Gepro mbH (2018), Schneider Electric (2019), OnlineMarketing.de GmbH (2020)