{"id":16441,"date":"2019-09-26T11:00:52","date_gmt":"2019-09-26T19:00:52","guid":{"rendered":"http:\/\/www.palada.net\/index.php\/2019\/09\/26\/news-10181\/"},"modified":"2019-09-26T11:00:52","modified_gmt":"2019-09-26T19:00:52","slug":"news-10181","status":"publish","type":"post","link":"https:\/\/www.palada.net\/index.php\/2019\/09\/26\/news-10181\/","title":{"rendered":"The Data Economy: 3 paths to value"},"content":{"rendered":"<p><strong>Credit to Author: Herv\u00e9 Coureil| Date: Thu, 26 Sep 2019 13:24:51 +0000<\/strong><\/p>\n<p>Transforming data into revenue? That is the burning question in today\u2019s boardrooms across industries. While there are many enablers for turning data into business insights or predictions, the question remains:<\/p>\n<h3><span style=\"color: #3dcd58\">&#8220;How is data strengthening the power curves or winner-take-most economics that we witness in today\u2019s digital economy?&#8221;<\/span><\/h3>\n<p> <a href=\"https:\/\/twitter.com\/intent\/tweet?text=%22How%20is%20data%20strengthening%20the%20power%20curves%20or%20winner-take-most%20economics%20that%20we%20witness%20in%20today%E2%80%99s%20digital%20economy?%22%20Discover%20more%3A%20https%3A\/\/blog.se.com\/energy-management-energy-efficiency\/2019\/09\/26\/the-data-economy-3-paths-to-value\/%20%40SchneiderElec\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-52576 size-full\" src=\"https:\/\/blog.se.com\/wp-content\/uploads\/2018\/11\/CTA-Twitter.png\" alt=\"Share the Post on LinkedIn - Data Economy by Herve Coureil \" width=\"200\" height=\"20\" \/><\/a> <\/p>\n<p>Let\u2019s take a closer look at the data economy.<\/p>\n<p><span style=\"color: #3dcd58\"><strong>Data and value<\/strong><\/span><\/p>\n<p>What makes data so valuable? In fact, it\u2019s the insights that the data reveals. In corporate environments, Forrester estimates that between 60-73% of enterprise data goes unused for analytics.<\/p>\n<h3><span style=\"color: #3dcd58\">&#8220;Is there a goldmine waiting to be unearthed from this data trove?&#8221;<\/span><\/h3>\n<p> <a href=\"https:\/\/twitter.com\/intent\/tweet?text=%22Is%20there%20a%20goldmine%20waiting%20to%20be%20unearthed%20from%20this%20data%20trove?%22%20Discover%20more%3A%20https%3A\/\/blog.se.com\/energy-management-energy-efficiency\/2019\/09\/26\/the-data-economy-3-paths-to-value\/%20%40SchneiderElec\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-52576 size-full\" src=\"https:\/\/blog.se.com\/wp-content\/uploads\/2018\/11\/CTA-Twitter.png\" alt=\"Share the Post on LinkedIn - Data Economy by Herve Coureil \" width=\"200\" height=\"20\" \/><\/a> <\/p>\n<p>Consider Forrester\u2019s view of the economic impact of insights-driven businesses. Their revenue model forecasts that insights-driven businesses could see skyrocketing compound <a href=\"https:\/\/go.forrester.com\/blogs\/16-07-28-insights_driven_businesses_are_stealing_your_customers\/\">annual growth rates ranging from 27% to 40%<\/a>, from a collective baseline of $400 billion in 2016. Think about the Airbnb example. <a href=\"https:\/\/bigdata-madesimple.com\/6-of-my-favorite-case-studies-in-data-science\/\">Launched with data scientists on board<\/a>, and equipped with the ability to adapt quickly based on what the data revealed, the company experienced 430x growth in only five years.<\/p>\n<p>Today, new business models around data and data insights \u2014 often termed data-as-a-service business (DaaS) \u2014 are emerging. Core elements of this business model include:<\/p>\n<ul>\n<li>Gathering new raw data sets (e.g., to train models, for instance in predictive maintenance)<\/li>\n<li>Cleaning, refining and enriching existing datasets<\/li>\n<li>Developing new insights and the ability to act based on those insights<\/li>\n<\/ul>\n<p>Think, for instance, of <a href=\"https:\/\/scale.com\/\">ScaleAI<strong>.<\/strong><\/a> This company recently raised $100 million (valuing it at $1 billion) for further development of <a href=\"https:\/\/eur02.safelinks.protection.outlook.com\/?url=https%3A%2F%2Fwww.theinformation.com%2Farticles%2Fsupplier-to-self-driving-car-makers-nears-financing-at-1-billion-valuation%3Fshared%3D35fb9bc64025c7b8&amp;data=02%7C01%7CHerve.Coureil%40se.com%7Ced0f7efd346e4a57469008d72c4799e0%7C6e51e1adc54b4b39b5980ffe9ae68fef%7C0%7C0%7C637026558339027652&amp;sdata=EZCJ6EMtS5ji3LjxKjsZJ4YnYqY5sN8bsCwj2jWFaZw%3D&amp;reserved=0\">its platform, which provides highly relevant training data<\/a> for AI developers. The platform doesn\u2019t build AI systems but supplies a key ingredient for those who do (such as self-driving car companies).<\/p>\n<p>In this evolving, more data-intensive business climate, no one organization can do it all alone. Formulating the right partnerships is an important key for understanding the data economy and staking a claim ahead of the competition. This is one of the main features of the <a href=\"https:\/\/exchange.se.com\/\">Schneider Electric Exchange<\/a> business platform, which can connect data specialists with organizations (such as commercial building owners or industrial enterprises) that want to optimize efficiency with granular data analysis). <a href=\"https:\/\/shop.exchange.se.com\/apps\/40349\/senseye#!overview\">Senseye<\/a>, for example, specializes in applying AI models to conditioned-based monitoring for predictive analytics services.<\/p>\n<p><span style=\"color: #3dcd58\"><strong>Path #1 &#8211; Creating new business opportunities<\/strong><\/span><\/p>\n<p>According to a <a href=\"https:\/\/www.bcg.com\/en-us\/bcg-henderson-institute\/default.aspx\">BCG Henderson Institute<\/a> study, digitally enabled trade will be worth between $800 billion to $1.5 trillion this year. The study also estimated that up to 70% of all global trade flows could eventually be meaningfully affected by digitization. Digitization initially enabled the cost-efficient matching of buyer and seller based in different countries. Now, it\u2019s paving the way to new digital offerings that either substitute or complement existing goods and offline services or create entirely new <a href=\"https:\/\/blog.se.com\/energy-management-energy-efficiency\/2019\/03\/31\/top-3-priorities-industrial-companies-can-drive-within-a-digital-ecosystem\/\">digital ecosystems<\/a> altogether, such as consumer-targeted energy services (informed by usage data) in <a href=\"https:\/\/www.accenture.com\/us-en\/_acnmedia\/pdf-58\/accenture-the-digital-oil-company-getting-ahead-of-the-energy-transition.pdf\">Oil &amp; Gas<\/a>.<\/p>\n<p><span style=\"color: #3dcd58\"><strong>Path #2 &#8211; Transforming business models <\/strong><\/span><\/p>\n<p>There\u2019s a widespread shift from selling products to selling value. For example, data-based services extend an organization\u2019s existing product and service portfolio by creating completely new services that use both data and associated analytics. A good example of this is a machine builder (e.g., <a href=\"https:\/\/www.youtube.com\/watch?v=hHewCiqpEk8\">Berto Coffee Roaster<\/a>) who, in addition to selling a manufacturer a shop floor machine, can now offer the ability the remotely monitor that machine\u2019s behavior in order to optimize performance and minimize downtime.<\/p>\n<p><span style=\"color: #3dcd58\"><strong>Path #3 &#8211; Discovering untapped efficiencies <\/strong><\/span><\/p>\n<p>For a long time, data was considered a business asset\u2026but a very intangible one that was mostly untapped and largely unvalued. Now, with new digital capabilities, rapid advances in ways to seize data\u2019s business value are becoming both omnipresent and numerous. In fact, data is turning into a foundation for making leaps forward in efficiency gains. One of the most radical examples of this is the <a href=\"https:\/\/www.iotworldtoday.com\/2019\/06\/11\/digital-twin-technology-beyond-rocket-science\/\">digital twin<\/a><a href=\"https:\/\/www.iotworldtoday.com\/2019\/06\/11\/digital-twin-technology-beyond-rocket-science\/\">\/ digital thread<\/a> framework. This approach utilizes data to accelerate business outcomes by capturing IoT\u2019s business value while developing efficiency opportunities, in real time, across CapEx to OpEx cycles.<\/p>\n<p>Those 3 value paths remind us that the tooling of industrial-scale, data-centric applications is just starting to be built, and that new technologies \u2014 for instance based on blockchain or crypto \u2014 are opening vast new possibilities (think, for instance, of the potential for technologies such as <a href=\"https:\/\/www.wired.com\/story\/zero-knowledge-proofs\/\">zero knowledge proof<\/a> or <a href=\"https:\/\/duality.cloud\/\">homomorphic encryption<\/a> for sensitive datasets).<\/p>\n<p>To learn more about how Schneider Electric can help support your efforts to leverage data\u2019s value in the emerging data economy, download our new e-guide <a href=\"https:\/\/go.schneider-electric.com\/US_201909_Digital-twin-e-guide_EA-LP.html?source=Content&amp;sDetail=Digital-twin-e-guide_US\">\u201cDigital twin: Bring your data to life for better performance.\u201d<\/a><\/p>\n<p>&nbsp;<\/p>\n<p> <a href=\"https:\/\/go.schneider-electric.com\/US_201909_Digital-twin-e-guide_EA-LP.html?source=Content&amp;sDetail=Digital-twin-e-guide_US\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-60284\" src=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/09\/CTA-Blog_Digital-Twin-eguide-1.png\" alt=\"Link to Digital Twin e-guide\" width=\"560\" height=\"150\" srcset=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/09\/CTA-Blog_Digital-Twin-eguide-1.png 560w, https:\/\/blog.se.com\/wp-content\/uploads\/2019\/09\/CTA-Blog_Digital-Twin-eguide-1-300x80.png 300w\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" \/><\/a> <\/p>\n<p>&nbsp;<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.se.com\/energy-management-energy-efficiency\/2019\/09\/26\/the-data-economy-3-paths-to-value\/\">The Data Economy: 3 paths to value<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.se.com\">Schneider Electric Blog<\/a>.<\/p>\n<p><a href=\"https:\/\/blog.se.com\/energy-management-energy-efficiency\/2019\/09\/26\/the-data-economy-3-paths-to-value\/\" target=\"bwo\" >http:\/\/blog.schneider-electric.com\/feed\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Credit to Author: Herv\u00e9 Coureil| Date: Thu, 26 Sep 2019 13:24:51 +0000<\/strong><\/p>\n<p>Transforming data into revenue? That is the burning question in today\u2019s boardrooms across industries. While there are many enablers for turning data into business insights or predictions, the question remains:&#8230;  <a href=\"https:\/\/blog.se.com\/energy-management-energy-efficiency\/2019\/09\/26\/the-data-economy-3-paths-to-value\/\" title=\"ReadThe Data Economy: 3 paths to value\">Read more &#187;<\/a><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.se.com\/energy-management-energy-efficiency\/2019\/09\/26\/the-data-economy-3-paths-to-value\/\">The Data Economy: 3 paths to value<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.se.com\">Schneider Electric Blog<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[12389,12388],"tags":[23058,6270,23059,23060,12541,12426,23061,21435],"class_list":["post-16441","post","type-post","status-publish","format-standard","hentry","category-scadaics","category-schneider","tag-daas","tag-data","tag-data-economy","tag-data-insights","tag-digital-twins","tag-energy-managementenergy-efficiency","tag-new-digital-ecosystems","tag-schneider-electric-exchange"],"_links":{"self":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/16441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/comments?post=16441"}],"version-history":[{"count":0,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/16441\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/media?parent=16441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/categories?post=16441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/tags?post=16441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}