How Does Data Monetization Promote Sustainability?
In the age of big data, companies are increasingly looking for ways to monetize their data assets. One area where data monetization can have a significant impact is sustainability. By leveraging data monetization and analytics, companies can identify areas for improvement, reduce waste, and promote more sustainable practices.
Did you know that by 2050, the world’s oceans could contain more plastic than fish? Data monetization can help identify and reduce plastic waste, promoting a more sustainable future. While many businesses have used data monetization to generate additional revenue streams, the practice also has significant sustainability benefits.
In this blog, we will explore how data monetization promotes sustainability.
- Enhances resource efficiency: Data monetization helps to improve resource efficiency by providing businesses with insights that enable them to optimize their operations. Businesses can take action to reduce their use of energy, water, and other inputs by identifying places where resources are being wasted, which will lower costs and leave a smaller environmental imprint. For example, a food production company can use data analytics to identify inefficiencies in their supply chain, allowing them to reduce waste and lower their carbon footprint.
- Enables circular economy: Data monetization can also enable a circular economy by providing businesses with insights that allow them to extend the life cycle of their products. This includes identifying opportunities for repair and refurbishment, as well as identifying new uses for waste materials. By reducing waste and reusing materials, businesses can reduce their environmental impact and dependence on virgin materials. For example, a company can utilize it to identify areas where they can use recycled materials instead of virgin materials, such as using recycled plastic to create new products.
- Improves supply chain sustainability: Data monetization can also improve supply chain sustainability by giving businesses greater visibility into their supply chain. This enables them to identify potential risks and take steps to mitigate them, such as reducing their dependence on high-risk suppliers or improving supplier sustainability standards. By promoting sustainability throughout the supply chain, businesses can decrease their environmental impact and improve their reputation. For example, a fashion brand can use data analytics to identify suppliers that are not meeting sustainability standards, allowing them to take corrective action or switch to more sustainable suppliers.
- Supports renewable energy adoption: Data monetization can also support the adoption of renewable energy by providing businesses with insights that enable them to optimize their energy usage. This includes identifying opportunities for energy efficiency improvements and identifying areas where renewable energy sources can be used. By adopting renewable energy sources, businesses can reduce their carbon footprint and support transitioning to a low-carbon economy. For example, a manufacturing company can use it to identify areas where they can lessen their energy consumption and turn to renewable energy sources such as solar or wind power.
Other suggestions for adopting sustainability:
- Embrace sustainability as a core business value: To leverage the potential of data monetization for sustainability truly, businesses need to make sustainability a core value and prioritize it in their decision-making processes.
- Invest in data analytics: Companies need to invest in analytics capabilities to monetize their data for sustainability effectively. This could include hiring data scientists or partnering with third-party analytics firms.
- Collaborate with stakeholders: Collaboration with stakeholders, such as suppliers, customers, and regulators, can be key to promoting sustainability through data monetization. For example, companies can work together to reduce their carbon footprint by sharing data on supply chain emissions with suppliers.
In conclusion, data monetization can be a powerful tool for promoting sustainability. To fully leverage the potential of data monetization for sustainability, businesses must make sustainability a core value, invest in data analytics capabilities, and collaborate with stakeholders. With these strategies in place, companies can monetize their data assets while positively impacting the planet.
Get in touch with Digital Prudentia for a consultation so that we can help you understand data monetization and clearly define your obligations so that your business remains up to date with advances in the data monetization and innovation.