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Big Data: Data Brokers to Flourish in Coming Golden Age of Monetized Data
Gartner predicts that companies will soon rely on data brokers to help them package and resell the data which they collect. By 2016 as many as 30 percent of companies will be trading and selling the data which they collect.
Data can be repackaged and resold, helping businesses to pay for the expense of collecting and storing the data. Doug Laney, research vice president at Gartner, said that “The need to justify the expense of accumulating and managing huge volumes of data has led many organisations to consider monetizing or productizing their information assets… For example, several retailers are already generating millions of dollars per year in incremental revenue by placing online their point-of-sale and other data for business partners to subscribe to. Other individuals have launched ventures packaging and reselling publicly available data, or using it to launch new information-based products- such as in the insurance and financial markets.”
But the remarketing of collected data has a dark side too. Chief among the issues are privacy and questions around the ownership of data. In December 2012, the FTC reported that “Consumers are often unaware of the existence of data brokers as well as the purposes for which they collect and use consumers’ data. This lack of transparency also means that even when data brokers offer consumers the ability to access their data, or provide other tools, many consumers do not know how to exercise this right.”
Gartner’s Laney commented that “Businesses monetizing information assets need to be sensitive to the reputational risk of public backlash against such practices, that may in turn lead to a tighter regulatory environment… Consumers and businesses must recognize that their personal usage, location, profile and activity data has a tangible market value. They should guard it and ensure that when they do share it they receive ample services, products or cash for it.”
