The Future of Data Economy – Data Marketplaces
Markets have existed for as long as humans have engaged in trade: from the earliest bazaars in Persia around 3,000 BCE to the world's oldest continuously operating market The Grand Bazaar, in Istanbul.
Today, we live in the age of data. Our physical world is more and more surrounded by digital products, that capture our lives digitally and generate tremendous amount of data in every minute. This digital transformation fuels a thriving data economy, and the demand grows as organizations find new ways of consuming data.
Today, there is a global race to access and analyze large amounts of data to improve performance, innovate, and grow. While organizations can use their internal data to enhance their businesses and innovate new products and offer new services for people, their data can also have significant value beyond their own business. On the flip side, companies cannot internally source all the data required to participate in this data and analytics competition. They need external data.
What are data marketplaces?
A data marketplace is where buyers can purchase datasets and data driven insights in order to enhance their analytics and offer new services to their customers, and sellers create revenue streams from their data and insight assets. Data marketplaces like ALTADATA provide a central exchange for high quality, ready-to-use datasets, and curated insights. There are three types of participants in the data marketplaces:
Data providers who want to package, publish, sell, and distribute their data assets. Traditionally, there were data brokers, syndicators, and open data providers, but nowadays, any company may commercialize their own data utilizing data marketplaces in the new data economy.
Data consumers are individuals or companies who want data-driven decisions and insights. Executives and investors want to improve and discover new potential growth with data-driven insights. Data scientists want external data to enrich their machine learning and AI learning models. Product managers want diverse datasets to understand their customers and the market. And on and on...
Analytics providers and consultants who want to leverage their products and services also pariticpate in these exchanges. They support companies and help them make data-driven decisions and create data driven insights.
Benefits of Data Marketplaces
There are four main benefits of data marketplaces that all participants can use to improve performance, innovate, and grow.
- Marketplaces provide an economic model for wider access to data for not only large companies but also for smaller size companies and individuals who want to publish or consume datasets.
- Marketplaces bring all the participants together which will make more data-driven use cases possible that were not achievable in the past.
- New data providers which have never existed before will introduce new datasets to the market. This will not only create revenue opportunities for the new data providers but also it will create innovation opportunities for all marketplace participants.
2. Find, validate, license
- Data marketplaces help to find and match your external data from hundreds of datasets with its catalog structure, search capabilities and documentation.
- Extensive documentation, dictionary, automated metadata, and data discovery features will help you validate and confirm the datasets before buying.
- Marketplaces will allow you to download and test a sample of a dataset before buying.
- With marketplace, you can license what you need - no more no less. Data marketplaces offer different subscription plans that allow you to purchase in bulk or partitions, considering historical or current records. They also give annual or monthly payment options.
3. Curation and Standardization
- Marketplaces promise clean, quality checked, ready-to-use datasets which will help data scientists, analysts, and marketers to improve the accuracy and value of their predictive models.
- Marketplaces set higher standards in terms of the dataset quality with the competition and advanced data modeling. All the standard reference and master data such as ISO codes, geography hierarchies, address data etc. can be consumed without worrying about ETL. Data providers take care of this standardization.
- Curation steps do not only cover the quality but also enhance data by adding scores, labels, segments or predicted columns, so the data consumers can expand their solutions by adding new features to their models.
- Marketplaces support companies and scientists to drive data-driven insights, fuel up machine learning and AI algorithms, and open new channels for marketers.
- Marketplaces provide different data delivery methods from standardized API, downloadable files, programming language libraries (you can connect your data from Python, R, Java etc.), Amazon S3 and more.
In conclusion, data marketplaces are an important part of the data economy and they will become vital by fueling more ML and AI applications in innovative companies. They open a new era for data providers, data consumers, analytics providers, and consultants. Data marketplaces will help democratize accessing and providing data and solutions for all size companies and individuals alike. Data scientists, product managers, marketers, and investors will all benefit in their quest to improve performance, innovate, and grow.
If you are looking for how data marketplaces can leverage your data and insights solutions, check out ALTADATA. ALTADATA will help you find, validate, license and integrate hundreds of ready-to-use, curated and standardized datasets.
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