I work in data analytics industry for more than 10 years. Since then, I have experienced the dusk of traditional – centralized BI and the transition to 2nd generation of BI, called decentralized, self service BI or sometimes also Data Discovery. And now, I am experiencing the dawn of a transition to the 3rd generation of BI. The new, “democratized BI” where the modern technologies including the Augmented Intelligence and Natural Language Processing are used to help anybody in the organization to utilize data analytics.
10 years ago, the top 3 needs of our customers were:
- to get the single version of truth and to avoid siloed reporting by individual departments,
- to save time with the preparation of manual reports and automate as much as possible and
- to empower the internal users and enable them to do the data discovery on any platform including mobile devices.
Now, in the exponential world and shared economy, we are getting more specific requirements such as:
- to make the data analytics solution more flexible and cheaper on cloud or on premise,
- to involve the external parties including public and
- to monetize the data and information, creating a new revenue stream for the company.
Many organizations are still reluctant to provide access to their data to customers or suppliers. The reasons behind that could be the fear of the loss of control, technical issues, fear of showing their IP to the competition or simply the lack of confidence that the data is correct.
Some companies are providing data to their suppliers without any analytics, using static reports in portals or scheduled sending of the spreadsheet to the email.
And the most innovative players are giving out everything by providing their partners with the same data analytics tools they are using internally… or even better ones.
Some examples by the industry leaders
Empowering of your suppliers or customers can bring a lot of positive results.
For example, Travis Perkins, a UK building merchant supplier and home-improvement leader empowered their suppliers using a data analytics platform, which resulted in the better product availability, reduced lost sales, optimized margin and lower deadstock. The requirement from CEO was to “Develop a world class solution for our Suppliers”. You can hear the whole story of Travis Perkins in this webinar.
Mayo Hardware, an Australian distribution company could serve as an example of customer empowering. Mayo Hardware is holding a market leading position in outdoor lifestyle, safety, security and hardware categories in Australia, New Zealand and selected export markets. They are linking the data from their customers with their own, internal data and they use the analytics apps on mobile devices directly in the stores, cooperating with the customers’ staff. Thanks to this, they are able to better manage the availability of their products on shelves, optimize inventory levels and at the end improving sales and also the relationship with their customer.
Another example is from leading leasing company in Europe. As a next step, after completing their journey towards a data driven organization, they are focusing on monetization of their data and knowledge. Currently, they are starting to empower their dealers and external sales managers by providing the detailed analytics online with the potential of future monetization with other partners.
The deployment models
In general, there are 2 main approaches from data analytics platform point of view.
- a company invests into the creation of the data analytics platform (e.g. Qlik Analytics Platform) and charges their suppliers or customers for the access, commonly using a freemium model. Usually, a core based licensing is being used and the costs start from $ 30k upwards
- a 3rd party builds a solution and provides it as a SaaS for a low price (e.g. $ 50-100 per month) to the suppliers or customers. An example of this could be an app for the suppliers of large retailers such as Bunnings or Mitre 10 on Inphinity.app created by EMARK Analytics. The suppliers just need to upload their data to a drive, reload the app to fill it with their own data and they can start analyzing right away.
Inphinity.app is the world’s first SaaS BI app store and deployment platform which is fully self-service and offers plug-and-play Data & Analytics. Customers can get qualified insight into their data using relevant D&A solution in minute and higher value from data analytics than if done in a traditional way. Also, both partners and customers can share and monetize their data and knowledge.
Not only for the large companies
The monetization or empowering of the customers or suppliers is not just a domain of large organizations. Using the efficient platforms such as Inphinity.app, also the small and medium businesses can start to monetize their data or knowledge and create a new revenue stream, which can be substantial in the future.
So, no matter what industry, size or type of organization, monetization and getting better results through empowering the customers, suppliers or partners can achieve unprecedented results.
And how about you? Are you currently thinking about monetizing using data analytics? Are you empowering your customers or suppliers?
Remember, if you do not disrupt your business, somebody else will.*
*Thanks to the Singularity University for teaching me this ;)