BBVA's Data Monetization Journey
Study: Recommendations for those who are embarking on their data monetization journeys.
Data monetization occurs when companies convert data and analytics into financial returns. BBVA, a global financial group, established a data science center of excellence in 2014 to lead its data monetization activities. By 2017, BBVA had developed a rich data monetization portfolio by making preexisting data monetization activities more effective, by pursuing new data monetization approaches, and by investing in a larger number of data monetization projects. Based on BBVA’s efforts, we provide recommendations for others as they embark on their data monetization journeys.
How it was studied:
BBVA, a global financial group, established a data science center of excellence to lead its data monetization activities. In 16 monetization projects over three years, they sold information solutions, improved business operations, and wrapped products with analytics features. Their impacts were to raise revenues, lower costs, and increase their capabilities and credibility. This summary of their activities and experiences can be helpful for many other firms.
- Data monetization efforts can have tremendous revenue enhancing and cost reduction impacts on firms.
- A firm with 16 monetization efforts were studied in this paper.
- Actions that led to their successful efforts were:
1. Balance short term goals and long-term capability creation
2. Invest in social good projects
3. Assess the value and impact of data science projects
4. Educate all employees about data science
5. Compensate data scientists with high nonmonetary benefits