2017 FORRESTER REPRODUCTION PROHIBITED WEBINAR Commercialization Opportunities Transform

WEBINAR Commercialization Opportunities Transform Data From Cost To Revenue Jennifer Belissent, Ph. D. , Principal Analyst August 24, 2017. Call in at 10: 55 a. m. Eastern time © 2017 FORRESTER. REPRODUCTION PROHIBITED.

We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

64% want to better leverage data and analytics in business decision making. © 2017

The rise of the insights-driven business • An insights-driven business systematically harnesses data and applies analytically derived insight to create differentiated experiences and competitive advantage. • If firms don’t use data and insights to create differentiated experiences and competitive advantage, a competitor or disruptor to their industry will. Revenue forecast of insights-driven businesses Forrester forecasts that these insightsdriven businesses will: § Increase their revenue from $333 billion in 2015 to $1. 2 trillion by 2020. § Grow at least eight times faster than global GDP. Source: The Insights-Driven Business Forrester report © 2017 FORRESTER. REPRODUCTION PROHIBITED. 5

“Data! I can’t make bricks without clay!” Sherlock Holmes (Sir Arthur Conan Doyle) ©

a huge potential supply of v Digital produces data! Take Siemens, for example ©

Digital natives showed the way © 2017 FORRESTER. REPRODUCTION PROHIBITED. 8

From monetization to commercialization AT&T IDENTIFIES VALUE FOR THEMSELVES AND FOR OTHERS “. .

Supply meets demand DATA COMMERCIALIZATION ACCELERATES We are currently commercializing data (i. e. , sharing it for revenue through services with partners and customers). 48% Base: 3, 373 data and analytics decision makers and 1, 615 data and analytics decision makers at firms commercializing data Note: Multiple responses are accepted. Source: Forrester Data Global Business Technographics® Data And Analytics Survey, 2017 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 10

Tech innovation drives Michelin’s offers Michelin is stepping up the development of its Michelin

From tire products to insights services MICHELIN TIRE CARE’S FLEET FIT SERVICE PROVIDES FORECASTING,

Governments offer the data directly THE U. S. ENERGY INFORMATION AGENCY’S API ENABLES AUTOMATIC FEEDS INTO SPREADSHEETS Business analysts embed macros to feed the data via API directly into spreadsheets. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 13

Data commercialization comes in many forms Base: 3, 373 data and analytics decision makers and 1, 615 data and analytics decision makers at firms commercializing data Note: Multiple responses are accepted. Source: Forrester Data Global Business Technographics® Data And Analytics Survey, 2017 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 14

Data commercialization crosses industry Source: Top Performers Commercialize Data Through Insights Services Forrester report

Top performers generate revenue from data and insights services Top performers are almost 3 x as likely to share or sell their data. Firms’ year-over-year revenue growth rate (2016 estimate) © 2017 FORRESTER. REPRODUCTION PROHIBITED. 16

Expedia’s advertising and media revenues jump year-over-year “The increase in advertising and media revenue in 2016 and 2015 was primarily due to continued growth in trivago and Expedia Media Solutions. ” — Expedia 2016 Annual Report © 2017 FORRESTER. REPRODUCTION PROHIBITED. 17

Data. Spark “Data. Spark, our advanced analytics start-up, is scoring more contracts from both public and private sector companies, which are using anonymised and aggregated telco data to gain insights that sharpen their business and operations planning. ” — Singtel Annual Report 2016 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 18

Monsanto’s data and insights portfolio drove acquisition bids to a 37% premium Citing digital farming and the use of analytics to deliver farming insights, Bayer offered to acquire Monsanto at a 37% premium over the stock price. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 19

On your marks, get set, go! © 2017 FORRESTER. REPRODUCTION PROHIBITED. 20

Design a data product or service › Identify your data assets. › Determine a target market. › Explore potential use cases. › Assess risks or concerns. › Demonstrate value quickly. › Design incrementally. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 21

Co-creation Collaboration Consultation © 2017 FORRESTER. REPRODUCTION PROHIBITED. 22

Establish a data product/services team Function Responsibility ü Customer Use case and market readiness ü Product “owner” Business case and ROI ü Product management Product specs and road map ü Sales and marketing Target audience and market sizing ü Technology management Architecture and security ü Data scientist/engineer Data and analytics ü Application development Application logic and interfaces ü Legal Risk and compliance © 2017 FORRESTER. REPRODUCTION PROHIBITED. 23

“The value of an idea lies in the using of it. ” Thomas A.

“Data + Use = Value” Christina Ho, US deputy secretary of commerce © 2017

An outside-in approach to pricing Not how much data or compute power! • “What are customers willing to spend? ” • “How have others priced similar data? ” • “What value could customers derive from it? ” Source: Jennifer Belissent, Ph. D. , “What’s My Data Worth? ” Forrester blogs, October 11, 2016 © 2017 FORRESTER. REPRODUCTION PROHIBITED. 26

What do I already know? › AT&T — What value are you deriving from it internally? › Honeywell — What value was delivered in a Po. C? › Siemens — What is the potential cost of unscheduled downtime? › Michelin — What is the potential cost of a tire blowout? © 2017 FORRESTER. REPRODUCTION PROHIBITED. What is the probability of any of these actually happening? 27

Deriving data’s value Use Data Revenue Costs Risk Likelihood Customer insights Upsell/cross-sell . . . Operational insights Energy efficiency . . . Location insights Real-estate portfolio . . . … … … . . . © 2017 FORRESTER. REPRODUCTION PROHIBITED. 28

Value = Incremental revenue + costs + potential risks x likelihood © 2017 FORRESTER.

Pricing facilitates entry and upgrade ELITE $XYZ per month PREMIUM $XY per month STANDARD $X per month $0 Basic analytics FREEMIUM TRY Customizable dashboards Mobile alerts Email sharing Customizable reports Guided ad hoc creation External data upload Predictive forecasting Prescriptive analytics Decision-support tools TRY BUY BUY Data access TRY BUY per month © 2017 FORRESTER. REPRODUCTION PROHIBITED. 30

How do I take it to market? © 2017 FORRESTER. REPRODUCTION PROHIBITED. 31

Image Source: PEXELS © 2017 Forrester Research, Inc. Reproduction Prohibited 32

Not yet ready to sell? Then share. © 2017 FORRESTER. REPRODUCTION PROHIBITED. 33

Keys to success Ease of use © 2017 FORRESTER. REPRODUCTION PROHIBITED. Time to value

What It Means… 1. New business models create opportunity for incremental revenue. 2. New business models transform relationships with customers, and provide greater visibility into how the use of traditional products and what customers need. 3. New business models offer tech orgs a role in generating revenue. 4. Data management and governance become not only costs but sources of value. © 2017 Forrester Research, Inc. Reproduction Prohibited 35

New: Forrester Insights for Android NOW AVAILABLE ON GOOGLE PLAY Download Forrester’s new Insights app for Android to: • Access research, insights, and key takeaways to accelerate your projects and support your decision making. • Save reports and graphics to read on the device of your choice. • Receive notifications to stay abreast of the latest trends and insights relevant to your initiatives. Also available for i. OS. forrester. com/app © 2017 FORRESTER. REPRODUCTION PROHIBITED. 36