Analytics & Marketing Metrics

Why Hoarding Your Data Is Hurting Your Business

Ostensibly, wanting to secure every bit of data in the business makes perfect sense. It is your property, and you would never let someone walk into your house and take your TV. But the reality is that holding data too close to the vest may actually be hurting you. In an article for Inc., Joshua Klein describes where hoarding goes wrong and what should be done with data instead.

Show and Tell and Profit

In the first place, there is just too much data these days. It is becoming increasingly and exceedingly expensive to secure it all. But secondly, there are real financial benefits to be reaped from consciously sharing data. Consider how much small businesses wish they could learn from the data of bigger players. Then consider that these people would be willing to pay to view it; McKinsey says there are $3 trillion untapped in pursuing open data approaches:

For example, the Spanish bank BBVA annually hosts [an] “Innova Challenge Big Data” contest based on anonymous card transaction data. Their very first challenge generated 144 projects from 19 countries, which helped accelerate existing BBVA products. One of the first projects, “BBVAI,” made their data service easier to understand by visualizing BBVA credit card purchases in the Madrid region’s municipalities.

Additionally, it created entirely new platforms dependent on BBVA’s data. These include Shopping Center Benchmarking, which allows companies to determine how effective their direct marketing strategies are, and Qkly, which helps users skip long lines in stores (among other products). Both platforms buy BBVA’s data and present it in interesting new ways as a value add.

Klein goes on to describe several more examples of businesses sharing their data for the benefit of all. He describes the principle as “radical sharing,” and the time to start considering it is now. Of course, this does not mean you should suddenly start sharing everything. Meticulous understanding of the value of your data will be required to know what is worth sharing, and no, you should not be giving away company secrets.

You can view the original article here:

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