WSJ – The Big Mystery – What’s Big Data Really Worth?

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Very insightful WSJ article  – ‘What’s Big Data Really Worth?’ by journalist Vipal Monga reports on how company’s value and charge for their ‘Big Data’ – a highly prized asset that can act as a substantial competitive barrier.

As predictive modeling and algorithms vastly increase in capability to precisely execute one-to-one marketing, valuing ‘data’ like other assets (e.g patents, brand, etc.) makes sense.

As examples, the Wall Street Journal notes:

  • Kroger:  “2,600 stores” and “tracks the purchasing history of its roughly 55 million loyalty-card members”.  Kroger “sells the information to the vendors who stock its shelves with goods ranging from cereals to sodas”.  Experts speculate the Kroger earn a whooping $100 Million from selling its data to vendors and others.

Interestingly, “Facebook, eBay and Google have combined assets minus combined debt of $125 billion. But the combined value of shares is $660 billion. The difference reflects the stock market’s understanding that the companies’ prize assets, such as search algorithms, patents and enormous troves of information on their users and customers, don’t show up on their balance sheets”.

The Vipal Monga of the Wall Street Journal makes a compelling argument of valuing data as an asset.

To read the full article on the Wall Street Journal web site, click here.

By Nick Mavrick

You can find Nick Mavrick on Google+

Intelligent Response specializes in operationalizing Predictive Analytics, Market Research, Quantitiative Marketing and Digital Advocacy in Washington DC.

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