Organisations are turning a blind eye to the opportunities offered by harnessing big data, a new report has found.
According to Gartner, many companies are missing the chance to cash in on customer data and ignoring the monetary value it presents to business.
Further, Gartner said that while some are beginning to realise the value of big data technologies, many organisations still lack the business models that will allow them to monetise customer data effectively.
The research firm suggested that companies should apply “infonomics” within organisations: treating customer data in the same way they would other corporate assets.
Douglas Laney, Vice President of Gartner, said: “Organisations should use valuations of their customer data as the basis for prioritising investments in technologies that help them acquire, maintain, enrich, archive and apply information.
“They should also calculate thorough business cases when designing monetisation products.
“By doing so, they will be able to create the necessary transparency for their stakeholders regarding the profitability of monetisation initiatives.
“It will also enable them to present proof of the valuation of their information assets during any merger or acquisition, or in an initial public offering scenario.”
Gartner proposed that companies look to banks and credit card providers as examples of how to properly monetise their customer data.
The research firm explained that banks and card companies provide payment information value-added services (PIVAS) to retailers and merchant partners, allowing them to deliver targeted promotions at the point-of-sale (POS).
However, Gartner added that there are still a number of privacy concerns regarding the monetisation of customer data, particularly on the part of the consumer.
Being the case, organisations should first wight up the associated risks of retaining customer data before deciding to monetise it, the firm concluded.
Laney said: "Digital business is having a significant impact on customer data.
“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.”