Data marketplaces have revolutionized the way businesses and individuals access data. While there has been a lot of lip service to data-first culture and data-centric decision-making, the data marketplace has walked the talk and truly empowered the industry ecosystem with a data economy that supports data sharing, is secure, and is universal. Industry verticals such as retail, FMCG, pharma, BFSI, media, and entertainment have shown tremendous trust in data collaboration on data marketplaces, paving the way forward for new adopters.
Organizations of all sizes and types can now leverage the power of data and use it to power their decisions and for market-forward thinking. They don’t have to worry about ‘what, when and where’ to get relevant data and can focus on the answers that data dictates. A unified interface, easy access via Microsoft Excel or other proprietary software, AI, data management, web scraping, and blockchain advancement have led to its emerging popularity.
The data marketplace platform industry was perhaps among the few that witnessed a favorable impact amid the pandemic. The traditional, non-digital verticals such as retail, IT, and BFSI gradually moved to digital platforms. The emergence of secure blockchain and remote access data services further propelled the data marketplace market into the next big thing of the future. A marketplace provides a data analytics framework by optimizing and arranging data flow, solving the persistent challenge that many companies face.
In fact, a data marketplace contributed to what can easily be called the largest vaccination campaign by corroborating the data on vaccination status across the world. Similarly, another data marketplace platform encouraged users to share their behavior data consensually for health mapping benefits.
A big data marketplace is intuitive and automated. It helps users to find their required data assets using a simple search bar. The data is delivered to the end-user seamlessly. Automation eliminates duplication of data and redundancy of requests, making the mechanism completely seamless and scalable.
It is an undisputed fact that it is the world of data and we are living in it. The question is, how is the dataset marketplace making it better? Last time we checked, data is like roses, and one must go through thorns to get to the flowery part.
So, let’s find out what this big deal about data marketplaces is and how a B2B data marketplace changes a business’s course of action.
What is a data marketplace? Is it really worth the hype?
As the name suggests, a data marketplace or dataset marketplace is a platform for data, much like Amazon or eBay, but exclusively for data. Individuals, data providers, and organizations can drive value creation by buying, selling, or exchanging different types and sizes of data. A data marketplace is a user-friendly intermediary that offers businesses and companies seamless and easy real-time access to data for analytics, reports, dashboards, and apps. The beauty of this is that teams don’t have to put effort into acquiring data and, instead, can buy data for such a marketplace. This efficient process allows the core teams to optimize their productive hours and streamline workflows. Much like any other marketplace, data sellers can use metadata and categories to promote their data, making it easy for businesses to discover high-quality data assets pertinent to their requirements.
The market for data marketplace is growing exponentially. In 2022, it was valued at USD 968 million and is expected to grow at a CAGR of 25% by 2030. Low integration efforts and minimal tech capabilities have reduced the entry barrier and led to data democratization for businesses. It has also helped data vendors and brokers operate on an individual basis. Third-party integration is a breeze and doesn’t require much tech expertise or integration efforts, leading to the easy discovery of data assets and high ROIs. Since vendors and brokers can reach a wide audience, it is a win-win for them!
Types of data marketplace platform:
Data marketplace features a search bar and assigns special attributes to the data it holds. Since it is a one-stop place for data, businesses can find varied forms of data depending on the sectors and industries. Here are some of the typical data categories:
- Demographic Data Marketplace
- Industry-wise Data Marketplace
- Events Data Marketplace
- Jobs Feed Data Marketplace
- B2B Data Marketplace
- B2C Data Marketplace
- Market Data Marketplace
- Social Media Data Marketplace
- Transactional Data Marketplace
- IoT Data Marketplace
- Firmographic Data Marketplace
- Scraped Data Marketplace
- Public Data Marketplace
- Geospatial Data Marketplace
Businesses and firms can access the data marketplace for B2B data and specific requirements. It is secured by blockchain technology. A data marketplace is a cost-effective way to acquire and promote data sharing among service providers and end-users. It reduces the data monopoly and makes data available to all. Data by the people, data for the people, data of the people democratization in its truest sense.
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Features of a dataset marketplace:
Apart from the usual search bar, categorization, and operations technicalities, a data marketplace is secured by blockchain and deploys cutting-edge predictive capabilities such as M2M (Machine-to-Machine) advancement, AI, ML, and cloud services. Analytics tools and web scraping are one of the integral aspects of a typical data marketplace. Other than the backend technology and intuitive self-service interface, here are a few features that one can expect to find in a dataset marketplace from a UX perspective.
A context hover for discoverability:
Like an online marketplace, data providers list their data assets, put a price tag, and include the features or specifications to help consumers decide. They also list the capabilities or technical know-how required to transfer the data. Users can hover over a dataset asset or product to find more information. Clicking on the assets can lead to more detailed information.
An advanced search (explore) bar:
Search for your desired data asset. Data market storefronts have search engine capabilities that let consumers look for the specific data assets they require. For instance, a healthcare researcher can access anonymous patient trials for their clinical research. Data consumers can also search for a product or service from a company’s or category name. Using this search bar, they can also find entities sharing the data and the names of companies that own them. If they want to see and browse through a similar data set, they can go to the data category that groups similar content suggestions.
Filters:
Based on their preferences, consumers and users can tune their search options in ascending or descending order for data quality, price, or company type.
Data transparency:
One of the core components of a data marketplace is transparency. Users can see the number of shares, downloads, and orders next to datasets. Popularity is a key metric and can help in the purchase decision.
Requests Creation:
Consumers can create and send requests to data companies and brokers for specific datasets when not readily available. Some owners also accept customization requests and can help with variations of existing data assets.
Resources:
A data marketplace encourages community building among data enthusiasts. Users can learn and expand their skill base by using the platform.
Who needs the data marketplace?
Data scientists, business intelligence professionals, analytics professionals, data engineers, business consultants, and research analytics who need readymade and ‘live’ data to generate data-driven insights rely on the dataset marketplace. Accessing a data marketplace for ready-to-query data can enhance cost efficiency, reduce operational costs, and help monetize it.
What constitutes a data marketplace ecosystem?
Here is a list of typical stakeholders in a data marketplace:
Data Providers:
Data providers are companies, data aggregators, research companies, brokers, or individuals that offer data assets that other businesses or individuals can use. For example, an exhibitor’s list of a major trade show can be perused by a business looking to increase the efficacy of outbound marketing. Similarly, companies can amplify their market research efforts using anonymous customer data.
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Data Consumers:
Data consumers are companies or individuals who want to access datasets for their tasks, analysis, research, or business intelligence efforts. A data analytics company would want unlimited and unrestricted access to anonymous data to dive deeper and explore patterns for their clients. Marketing research service providers would consume data to analyze customer demographics and user behavior. Consumers can find datasets with unrestricted access, meant for internal use only or for commercial usage. Customers can rate or review the products and solutions to facilitate purchases for other customers and guide them in making decisions. This prompts data marketplaces to maintain trust and ensure fair play.
Operators:
Companies or individuals in charge of maintaining and operating the data marketplace are called operators. A data marketplace’s journey is plagued with typical challenges that come with handling complex sets and large volumes of data, such as metadata management, data cleaning, approval workflows, scalability, and enterprise-grade data integration across applications. De-duplication of data also is a major challenge that the data marketplace faces. Maintaining and ensuring that a data marketplace ecosystem is up-to-date, that data remains relevant, verified, and latest, and that it is easy for the parties collaborating is the platform operators’ cross to bear.
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Governing Entities:
A marketplace is as good as its data, and to protect its reputation, it is important to have an established set of protocols, procedures, policies, and compliance requirements. It is imperative to maintain trust in the data quality. Enter governing entities that ensure compliance requirements are upheld and thoroughly followed. The data marketplace must comply with legal and regulatory frameworks mandated by international authorities such as HIPAA, CCPA, and GDPR. A governing authority must ensure that the data available is collected legally and consensually. Quality checks, non-partisan and verified buyer ratings and reviews, dispute resolution, secure storage, encryption, and data protection also come under the purview of governing entities. Data stewards and data editors continuously monitor data’s performance and quality to ensure that data is verified, accurate, and up to date.
Difference between a data exchange and a data marketplace:
A data marketplace is an online store that connects data sellers and buyers publicly while facilitating data sharing and collaborating in a secure marketplace. However, data exchange takes place internally between interested and trusted partners in a private setting.
A good marketplace platform will utilize strong security measures, including digital access controls, multi-factor authentication, and encrypted data transfers via VPN servers. Buyers must review platforms to ensure these features are present, as well as perform internal office security audits to ensure data security.
Now, that we have covered the basics of a data marketplace, let’s move on to the most crucial question: What’s the value of a data marketplace in today’s world, and can it really accelerate your business’s digital transformation at an enterprise level?
Silo-free access to data for everyone
The marketplaces feature self-service access to data, are secured by blockchain, and maintain verified, evergreen data that is a treasure trove for businesses that realize the potential of data and want to adopt a data-first approach for business innovation and decisions.
Data is most certainly the new oil. The best part is that it is neither geocentric nor limited. Instead, it is available in abundance, ready-to-query, refined, processed, de-duped, and waiting to be used to its full potential via the data marketplace platform. Besides, marketplaces have reduced the cost and complexity of acquiring, managing, and storing large volumes of data, fostering a data-driven ecosystem and decision-making. Such platforms have leveled the playing field for SMEs and small businesses alike. Businesses that don’t have the means, workforce, or technical expertise to manage or handle such volumes of data can now be a part of the data revolution.
Access to reliable external data
One major advantage of using a B2B data marketplace is that companies can enhance internal data assets by collaborating and validating with external data. The GIGO analogy is true. Bad data will always lead to incorrect output; hence, with a data marketplace where data is aplenty, cleaned, and processed ready-to-query, this is a dream come true for any research analyst and businesses wanting to lead with data-driven insights.
Besides monetization, collaborating with other data providers and organizations for data exchange allows both parties to expand their network and grow mutually. As we saw during the pandemic, a healthcare and technology company came together to combat and bridge the gap between vaccination status and health mapping. Similarly, a BFSI company can join hands with a tech company to detect PEP and AML fraud detection.
Cost-efficient and automated data collaboration
Manual data collaboration and exchange between entities can be quite cumbersome and expensive. A B2B data marketplace promotes inclusivity and fosters an automated data-driven economy, leading to trust and fruitful data exchange. User-generated reviews and ratings for data assets in a marketplace also help create transparency. Dependable, relevant, and segmented data is available to businesses so that they don’t have to spend exorbitant money on acquisition, on resources to train a team of data scientists or research analysts, or get it from unverified sources.
Optimized workflows across the verticals
A data marketplace gives the power of data to the end users. Since the data is clean, processed, and verified, businesses don’t have to spend hours cleaning it or worrying about its veracity. The core teams can focus on being productive. Since the data is ready and prepared, business processes and workflow are more efficient. Most importantly, it empowers data scientists and analysts who can use this data to recognize patterns and help business leaders with data-driven insights.
Accessing operational or production data can lead to smoother and streamlined supply chains and business operations by studying peak operational hours and identifying bottlenecks. The procurement and logistics team can get data for transportation costs and suppliers’ performance. Using the data can help them forecast demand and peak time. They can use this data to improve the supply chain, reduce product shortages, and enhance sales. Accessing the data analytics marketplace can also result in adopting best risk management practices and increasing regulatory compliance at an enterprise level.
Marketing teams can access the data marketplace to gain insights into customer expectations, market trends, and user behavior. Pricing and analytics data can help better understand competitors’ pricing and business strategy. Using this data, a marketing team can also plan a global expansion or get a reality check before it is too late.
Data fluency
‘I am not a data person.’ ‘Talk to me in English.’
Data culture can become a real thing at your office. Thanks to the data marketplace, teams can understand the importance of high-quality data in driving business outcomes and derive context from it. Since data is ready to be used, teams can use it, understand it, and speak it within the context and analytics of the data landscape. The data isn’t in silos or being used by the tech or analysis team alone. Shared understanding can be achieved by data collaboration. More often than not, business stakeholders have similar requirements shared in different languages and methods. With a data marketplace, redundant requests can be removed, and duplicated datasets can be eliminated. The time of your IT and data operations team is saved from working on repetitive tasks, and they can use it to streamline their productive hours.
Crowdsourcing high-quality data
A data marketplace has multiple collaborators, and despite that, the data shared and exchanged is high-quality. While data sharing is encouraged from various standpoints, stringent regulation, and automated secure encryption ensure that the data quality isn’t compromised.
Improving user behaviour
A data marketplace offers an unmatchable opportunity to study consumers’ behavior and requirements. Since it keeps track of data usage, it lets the users monitor their data for performance and quality. A user can track the requested asset and tweak their data strategy accordingly.
Democratizing data implies that data and its insights are available for everyone, including the non-technical aspects of a business. Customer care, HR, product design, and marketing teams can gain insights from tailor-made data to personalize their sales pitch, target segmented groups, or develop products that align with their customers’ needs.
Conclusion:
There has been much talk about data culture and data-driven decision-making. However, the reality is different. Data democratization and acquiring relevant and reliable data are often mammoth challenges. The big players often have it easy, given the resources they have at hand. For new adopters and SMEs, not so much. Imagine being a healthcare research professional and looking for clinical trial data or a start-up looking for jobs to feed data in a world without a data marketplace. Scary.
Data marketplaces have empowered a data as an asset mindset. Businesses are now waking up to the true potential of data and understand that intelligent data management is critical for their sustenance. Data marketplace platforms like BizProspex encourage silo-free communication and self-service access to data. Data governance can also be an issue for businesses. Data marketplace platforms have intuitively addressed security and regulatory concerns using blockchain technology and predictive capabilities. Besides, there are governing authorities that offer manual intervention whenever it is needed.
It is a cloud platform, and enterprises can virtually access the data for every vertical and requirement. Whether a business requires data for its APIs, customer journey, reports, dashboards, and other digital platforms, it can support all data requirements irrespective of the size and type of a business. As the number of collaborators grows, the data expands in volume and complexity.
A data marketplace like BizProspex also helps businesses avoid falling into the data black hole by reducing replication and redundant requests. It is automated, smart, and promotes precise enterprise data-driven decision-making. The BizProspex team is equipped to handle the data quality and maintain the integrity of data-related aspects. The team deploys predictive capabilities such as AI and ML to ensure that data is obtained legally and complies with all international data governance regulations. You can also send requests for bespoke data requirements.
Ready to explore data-driven insights and harness enterprise analytics with the BizProspex data marketplace platform? Contact us for a demo call here.