Data monetization is a potential gold mine for transport, automotive and related organizations. Connected cars are the talk of the automotive market, but shared mobility in a growing niche too. With a large number of IoT gadgets and sensors connected to different types of vehicles, the amount of mobility data available is staggering. We can only witness an increase in this data in the future because curiosity in modern vehicle autonomy and shared mobility is only starting.
Now, the question by most people is, how can this mobility data be of monetary value? Join us as we explore a few strategies that can help you take advantage of mobility data.
The Situation in the Market
The world is highly connected with data that has the potential to transform the future. According to a McKinsey report, the car data monetization revenue pool could be worth up to $750 billion by 2030. For instance, more than 80% of the connected car data is yet to be monetized.
For this economic potential to come to fruition, the players need to leverage the data value. We are talking about service providers, infrastructure organizations, technology firms, dealers, and OEMs themselves.
The market reception or understanding of data monetization is uneven. For instance, Deloitte’s 2019 Global Automotive Consumer Study revealed that while Chinese approval of the benefits of vehicle data monetization stands at 79%, only 35% of German customers share those views.
So, what are the options for companies and organizations interested in data monetization?
Challenges to Consider
Data monetization comes with a range of challenges encompassing technological, legal, and social concerns. Original equipment manufacturers (OEMs) and other players are working day and night to iron out these issues.
Perhaps, the biggest drawback in the progress of data monetization programs is the legal obstacle. Data privacy must be safeguarded. Players must adhere to existing laws.
Biometric data is central to the relevance of connected cars and other smart transportations, but its use is tasking many players. There are too many privacy obligations and restrictions. For example, Illinois’ Biometric Information Privacy Act (BIPA) requires companies to adhere to strict data protection measures. The result has been a limited number of real cases of data monetization.
The potential for mobility data monetization may be there, we have analyzed the challenges and outlined a few strategies.
Taking Control of Legislation
The world of data privacy legislation is dynamic and the fines for non-compliance can be extremely punishing. It is incumbent upon OEMs to monitor their data monetization programs to ensure complete compliance at any given time. In addition, industry players need to collaborate amongst themselves to petition the government to enhance the protection of certain programs.
Customers are more ready to part with data when they are assured of data privacy and know the benefits of sharing information. That’s why mobility players must center their focus on the value their strategy is giving to the customer. Brand loyalty promotion should be the long-term strategy, as it will ensure a revenue stream. If you have any short-term money-making ideas, let them come as a bonus.
Representation at Senior Levels
The success of a data monetization program significantly depends on how well it is allocated resources and budgets. If it is not a priority at the high table, then it is likely to fall by the wayside. Seek executive support so that the program can remain relevant in the wider organization. Such representation will ensure that the program is not judged in the short-term, but rather given the long-term outlook it deserves.
Based on findings from the research “Accelerating the car data monetization journey” conducted by McKinsey & Company , players in the car data space may need to undertake some industry-specific strategies to generate value from mobility data. For instance, according to the survey, the majority of OEM executives have no idea what benefits the customer is expecting. Thus, OEMs need to focus on connected customer experience before developing any products or services in that regard.
Infrastructure and technology players are struggling with unpreparedness for partnerships. The most important data monetization strategy for them is to closely work with OEMs to array any fears or misunderstandings about business models.
As for suppliers, collaborations with OEMs should have a healthy balance between tensions and benefits. Suppliers need to adopt data monetization strategies that create value propositions that benefit all parties.
Promoting brand visibility is probably the single most important strategy for service providers. The consumer will find it relevant to have the benefits of mobility data solutions communicated to them more clearly.
Getting real benefits from mobility data requires a business strategy that takes into account several conditions. Among them is the customers’ willingness to pay and share data.
As you can attest, this process is not quick and automatic because many systems are involved. A short-term strategy will probably fail because mobility data monetization takes time. Be ready to do it for the long haul because it will eventually pay off. However complex this process may look, Net4things has the experience to successfully lead any OEM or other organization through the transformation. To learn more about our company’s vision on data monetization, or how we are assisting different clients leverage data and monetize it for their purposes, visit here.