The slides provide a quick overview of the Data Economy trend. The slides provide summary information, a list of trends to watch and links to additional resources

1. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
The Data Economy
IBM HorizonWatch 2016 Trend Brief – External Version
Bill Chamberlin, Principal Client Research Analyst / IBM HorizonWatch Community Leader
May 9, 2016

2. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
About This HorizonWatch Emerging Trend Brief
2 The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016
 Purpose: The slides provide a quick overview of the Data Economy trend. The slides
provide summary information, a list of trends to watch and links to additional resources
 How To Use This Report: Use these slides as a learning document and a springboard to
further research and reading on this trend. You may want to view the slides in slideshow
mode so you can easily follow the links
 Available on Slideshare: The latest version of this file (and other HorizonWatch Trend
Reports for 2016) will be available publically on Slideshare at
http://www.slideshare.net/horizonwatching
 Please Note: This report is based on internal IBM analysis and is not meant to be a
statement of direction by IBM nor is IBM committing to any particular technology or
solution.

3. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Defining the Data Economy
Definition:
The data economy refers to the ability of enterprises to
leverage big data and analytics as a corporate asset to
make strategic business decisions, improve operational
efficiencies and drive revenue growth as well as create
new and innovative business models.
The data economy also refers to the increasing effort by
enterprises to monetize data as a saleable organizational
asset as organizations increasingly seek to harness data
for business decision making.
3
Enabling Technologies:
• Networks, protocols and basic software for the
Internet of Things (IoT)
• IoT devices including sensors, low power
processors, hubs/gateways and cloud computing
platforms.
• Embedded analytics
• Cloud Computing
• Emerging Big Data and data storage
technologies, such as MapReduce, Hadoop,
Apache Spark, NoSQL databases, etc.
• Data Governance & Integration tools
InformationWeek: 8 Ways to Monetize Data
“Information has economic value that
organizations can "turn into money" in two
ways:
1) By selling, bartering or licensing it,
2) By using it to reduce costs or increase
revenue.”
Gartner: Seven Steps to Monetizing Your
Information Assets
The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016

4. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Characteristics of the Data Economy:
• Explosion in creation, capture and
dissemination of increasingly granular
and substantially more personal data
• Value in data, metadata and derived
data enhanced by situational,
contextual, historical, and temporal
factors and user dependent.
• Growth in data sharing across
organizational, business process and
enterprise silos increases business
impact.
Key Takeaways:
• Possession of data provides power
and control in the insight value chain
• Insight on combined data delivers the
highest return
The Data Economy: Data is a primary driver of value
Source: 451 Research
“Many organizations do not manage
customer data as a corporate asset,
and the monetary value of that data is
often ignored” - Gartner
4 The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016

5. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
The Data Economy – 4 trends to watch in 2016
1. Data emerges as revenue source. Some leading edge
companies believe monetization of data could become
as important as their current offerings.
2. Cross-enterprise integration unlocks data
monetization opportunities. As more enterprises
invest in cloud, IoT and big data solutions, they will seek
solutions to integrate and harmonize data. Enterprises
that are able to overcome data complexity and achieve
integration will be able to identify and capitalize on
opportunities to monetize data.
3. Rise in connected devices and IoT platforms create
new feeds. Enterprise IT decision makers turn to
analytics solutions for connected devices. The ability to
optimize IoT analytics to identify true value, and translate
valuable data into saleable assets, will be key to
differentiation.
4. Personalization will be a key data economy driver.
Delivering personalized, contextually relevant customer
experiences will remain a key driver of data economy
growth, particularly as enterprises aim to unlock value
from unstructured social media sources. Success stories
in translating social media data to revenue will lead to
data monetization opportunities.
5
“Gartner predicts that 30 percent of
businesses will have begun directly or
indirectly monetizing information assets via
bartering or selling them outright by 2016.”
Gartner How to Monetize Your Customer Data
“By 2020, data monetization efforts will result
in enterprises pursuing digital transformation
initiatives increasing the marketplace's
consumption of their own data by 100-fold or
more.” IDC Worldwide Big Data and Analytics 2016
Predictions
IBM - Driving Value Through IoT Data
Monetization
The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016

6. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
The Data Economy – Adoption Challenges
 Getting started. One of the initial issues is figuring out
where to start. Companies collect vast amounts of
information about everything from prospects and customers
to suppliers, processes, and operations Determining the
most important data points and how to monetize them is
often a big first hurdle.
 Managing industry specific data needs. Big data
requirements can vary significantly by industry and different
audiences require information in different ways, posing a
challenge to sellers and buyers of data.
 A lack of sophisticated tools for data integration and
analysis. Complex data sets are often poorly structured for
big data analysis and integration. Any data monetization
effort requires the integration, cleansing, securing, and
governance of diverse data sets.
 Finding and retaining data scientists and other related
staff. Successfully managing vast amounts of data
requires resources with unique skillsets and forward-looking
mindsets. As the data economy is still nascent, finding,
training, and retaining best-in-class data scientists to
manage big data objectives poses a challenge.
6
“Through 2017, 60 percent of big data
projects will fail to go beyond piloting and
experimentation, and will be abandoned.”
Gartner Press Release
IBM - The top 7 challenges for data-
driven CXOs
The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016

7. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Selected links to additional resources
• Accenture: Data Monetization: What’s Your Data Worth?
• Digital Agenda For Europe: Worldwide Big Data Technology and
Services - 2012-2015 Forecast
• Digital Agenda For Europe: Towards a thriving data-driven
economy
• EMC: Monetizing your data to create new revenue streams
• IBM - Driving Value Through IoT Data Monetization
• IDC: Monetizing your data
• InformationAge: The future of the data economy: how to measure
the true value of your data assets
• Information Builders: Data Monetization Strategies
• InformationWeek: 8 Ways to Monetize Data
• KPMG: Framing a winning data monetization strategy
• McKinsey: Big data: The next frontier for innovation, competition,
and productivity
• Strategy&: The data gold rush
• U.S. Chamber of Commerce Foundation: The Data-Driven
Economy
• Wikibon.org: The Data Economy Manifesto
7
“The increasing volume and detail of
information captured by enterprises, the rise
of multimedia, social media, and the Internet
of Things will fuel exponential growth in data
for the foreseeable future” - McKinsey Global
Institute
InformationAge: The future of the data economy:
how to measure the true value of your data assets
The Data Economy: HorizonWatch Emerging Trend Brief (External Version)09May2016