We encourage public sector partners to think about data monetization as a spectrum of opportunities. On one end, there’s indirect monetization, which refers to the obvious idea of getting more value from data by doing more with what already exists. That could mean putting data in a more accessible form or location; sharing it across departments more effectively; or mining it more deeply to identify potential operational insights, anomalies, or efficiencies.
On the other end of the spectrum is the idea of direct monetization, meaning new, incremental revenue flowing directly to the city in exchange for the rental, purchase, or limited use of the city’s data. This is approach requires some focus and a proactive sales effort, but can deliver attractive, meaningful revenue streams.
In the middle of the spectrum is what we think of as the Hybrid opportunity. This is often where cities are most comfortable getting started, since its initial focus is on ensuring that the municipality is getting fair value for the time, effort, and costs of the city’s current efforts supplying data to other entities.