A Complete Guide to Infonomics in 2022

ByPaul Christiano Last Update on

Are you looking to better manage and monetize your organization‘s data in today‘s digital economy? Leveraging an infonomics approach can help maximize the value of your information assets. This comprehensive guide will explain what infonomics is, why it matters, how to implement it, real-world examples, and best practices to drive success.

What Exactly is Infonomics?

Infonomics involves managing data as a valuable business asset and accounting for its value just as you would with any other corporate asset. It means shifting your mindset to recognize that your organization‘s information has tangible monetary value that can be measured, managed, and leveraged to generate revenue.

According to leading research firm Gartner, infonomics is:

"The discipline of managing and accounting for information with the same or similar rigor and formality as other traditional assets and liabilities."

Infonomics posits that even if not accounted for on financial statements yet, information meets the criteria of a formal asset. As a result, organizations should treat data with the same strategic approach as any other asset on their balance sheet.

The Rise of Infonomics and Information Monetization

Several key factors explain why infonomics has seen rapid growth and adoption in recent years:

  • Massive data growth – The exponential growth of data through digital transformation provides a wealth of monetization opportunities.
  • New revenue options – Technologies like analytics and AI allow more ways to productize and sell data.
  • Data‘s unique traits – Unlike physical assets, data increases in value when consumed and reused.
  • Changing mindsets – Business leaders now recognize the potential of data as a revenue driver.

According to IDC, the amount of data created over the next three years will be more than the previous 30 years combined. As data volume continues to explode, organizations are waking up to the value of managing information as an asset.

According to a Forbes survey, 66% of enterprises now monetize their customer data in some way. And Gartner predicts over 30% of organizations will adopt infonomics practices by 2022.

Data also provides unique monetization opportunities compared to traditional, physical assets:

  • It can be used for multiple purposes without diminishing in value
  • Its value increases rather than decreases with usage and insights

With advanced analytics, AI, and cloud technologies, organizations can now productize their data in new ways – either selling it directly or extracting value through internal analytics. An infonomics approach provides the framework to capitalize on data‘s business potential.

The Path to Monetizing Information

Transitioning to an infonomics model involves concrete steps to productize your data:

Appoint centralized leadership

Assign an executive data product manager or team to develop data monetization initiatives rather than leaving it siloed in IT.

Catalog all data assets

Leverage a data catalog or mapping process for full visibility into your information assets. Hidden data can‘t be monetized.

Evaluate monetization approaches

Assess options for direct sales of data vs. indirect analytics monetization to determine the best strategies.

Start small then scale

Pilot product offerings with small test groups before full launch to refine based on feedback.

This process requires extensive cross-functional collaboration – from data teams providing raw materials to sales and marketing monetizing products. Infonomics represents a shift in culture and technology.

The Tangible Benefits of an Infonomics Approach

Adopting an infonomics framework has many tangible benefits:

  • New revenue streams – Monetization of data through sales or indirect analytics.
  • Improved data management – Treating data as an asset encourages better data governance.
  • Informed decision making – Analytics insights powered by an infonomics mindset are more impactful.
  • Risk mitigation – Proper data asset management enhances privacy/compliance.
  • Smarter investments – Quantifying data value ensures you don‘t overspend on tools/security.

According to leading research firm IDC, organizations are achieving substantial value through data monetization:

  • 10-25% increase in operational efficiency
  • 20-30% faster product innovation cycles
  • 15-25% revenue growth

For example, Google utilized an infonomics approach internally to quantify the value of improving ad targeting algorithms. By assigning an actual dollar value to the data asset, they could justify greater investments in analytics tools to maximize long-term impact.

Real-World Examples of Infonomics in Action

Understanding how other organizations have succeeded with infonomics is instructive:

Dawex

Dawex operates a data marketplace, enabling companies to directly list and sell data products. Suppliers can publish datasets, set pricing, and earn commissions on sales like an app store.

General Motors

GM used infonomics to quantify the value of data from connected vehicles. By comparing costs of hardware vs. incremental revenue opportunities, they could justify greater IoT investments.

Rolls Royce Aerospace

Rolls Royce monetizes aviation engine sensor data through performance-based maintenance contracts. Customers pay for data analytics insights that optimize engine servicing and maintenance lifecycles.

Best Practices for Infonomics and Data Monetization

To maximize the results of your infonomics initiatives, leading organizations recommend these best practices:

  • Start small – Pilot ideas before going all-in to refine monetization models.
  • Focus on use cases – Identify high-value business challenges that data can address rather than monetizing for its own sake.
  • Prioritize privacy – Avoid compliance issues that could carry major reputation and legal risks.
  • Develop data mastery internally first – Leverage analytics to improve decisions before attempting to productize externally.
  • Formalize data governance – Implement oversight of data as an asset with documented processes and policies.
  • Be transparent with consumers – Clearly communicate how data is being monetized and provide opt-out options.
  • Evaluate emerging technologies – Cloud platforms, AI, and new analytics tools open up fresh monetization avenues.
  • Consider external partnerships – Data marketplaces and platforms can provide reach and enable faster monetization.

Key Takeaways and Actions for Your Data Monetization Journey

With the right strategy, infonomics provides a path to maximize the value of your organization‘s data in tangible ways. Key recommended next steps:

  • Catalog your existing data assets and quantify their business value.
  • Research options for direct vs. indirect monetization models.
  • Pilotideas with small test groups before scaling up.
  • Implement a data governance framework with proper oversight.
  • Evaluate technologies and partners to accelerate your data monetization initiatives.

Ready to unlock the revenue potential of your enterprise data? Reach out to our team of experts to get started on your infonomics journey today.

I am Paul Christiano, a fervent explorer at the intersection of artificial intelligence, machine learning, and their broader implications for society. Renowned as a leading figure in AI safety research, my passion lies in ensuring that the exponential powers of AI are harnessed for the greater good. Throughout my career, I've grappled with the challenges of aligning machine learning systems with human ethics and values. My work is driven by a belief that as AI becomes an even more integral part of our world, it's imperative to build systems that are transparent, trustworthy, and beneficial. I'm honored to be a part of the global effort to guide AI towards a future that prioritizes safety and the betterment of humanity.

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