Most organizations will gain value using data strategically to improve decision-making, rather than directly licensing, or selling their data. Like any other asset, a strategy for extracting value from data assets needs to address people, processes, and technology.
An illustrative case is Capital One. In the ‘90s, Richard Fairbanks and Nigel Morris wanted to apply predictive models to target customer profitability when extending terms for credit cards.
Signet bank hired them to execute this information-based strategy, enabling Signet to target accounts for expected value. In the ’80s, banks relied on third party models to evaluate default risk and could not vary terms to attract customers with higher expected value. Success in using data to attract higher value customers eventually became what is now known as Capital One.3
