Capturing the value of data
In the previous section, we discussed how data creates value. Now, let's find out what the value of data is and how to capture it; we will now move from understanding the process to understanding the math. The crux of monetizing Big Data lies in capturing the value created by data as correctly as possible. In going down this path, it is important to remember that this monetization process is not an exact science, so we will have to work with some assumptions and approximations.
Identifying the value
Data leads to insights and insights lead to tangible business benefits. In the example of retail store customer information from the previous section, the data will lead us to stocking and promotion decisions, which will most likely result in new customers coming in or existing customers visiting more frequently and customers buying more. The insights and resulting actions will lead to tangible business benefits in terms of higher sales and profits. It is not very difficult...
