According to a new market report available on MMRSE The Global Data Monetisation market is set to grow by over 21 percent over the next 7 years, reaching an estimated value of $709bn by 2025.
Data monetization is the process of transforming the large unstructured volume of enterprise data into valuable insights for drawing economic value or exchange of service.
This can be directly or indirectly. For instance the selling of data assets to third parties (direct), such as Google Nest data or the processing of data to create insights which are used to empower business decision making (indirect).
The market is experiencing significant growth primarily because of the large volume of data that is now generated by businesses as a result of the internet and smart technology.
Of all the sectors, the utilities industry has the most potential as smart meter take up gathers apace. It is estimated that 8.6 million meters have already been installed in the UK and the sector is committed to meeting the government’s deadline of offering every household and business a smart meter by 2020.
The data that is generated by smart metering if used properly can be used to revolutionise the utilities customer experience – something which is considered as lacking at the moment.
The industry often comes bottom of customer centricity surveys such as a recent one by EY which shows that just a fifth of customers trust their utility provider.
An ongoing study conducted by the government into the smart meter experience reveals that so far only seven per cent of customers have been left unsatisfied by their smart meter.
Eighty per cent are either very or fairly satisfied.
The majority of customers have opted to have a smart meter installed so that they can see how much energy they are consuming and to reduce the need for meter readers as well as more accurate billing.
Attitudes towards data sharing were also very encouraging, particularly in this post GDPR world.
A third of all respondents recalled their supplier asking whether they wanted to share their half-hourly consumption data – and of these 94 per cent agreed.
Almost a fifth (17 per cent) believed that sharing their data would be of value to them.
Half (52 per cent) of respondents said they would like to receive more information about at least one of a list of topics shown to them during the survey.
They were most interested in finding out more about the data stored on their smart meter (36 per cent), how to use less energy in their home by changing habits and routines (29 per cent) and changes they could make to their home to make it more energy efficient (28 per cent). This is all information the supplier can provide through segmentation and data analysis.
As a result of smart meters utility companies are becoming more dynamic. Going from an average of one meter reading every six months to one every half an hour results in a 2,000-fold increase in data which could be overwhelming if not properly managed or processed.
However, with the right analytics and data science applications it can be very powerful indeed in terms of improving operational cost structure, customer experience, and overall performance. Exciting times.