Business models

Overview

One of the questions we hear frequently is “if individuals are controlling their data and services are not free based on advertising, then what is the business model?”

Over the past three decades, the exponential rise in social and data platforms has resulted in the monetisation of data based on a concentration of platform access and control. In parallel, breakthroughs in science and technology have been made possible through data driven decision models.

Now the challenge for the decades ahead is to shift monetisation away from centralised data control and to unlock value through data exchange and collaboration. This shift will provide mechanisms for all members of society to be incentivised by the creation of new value and better decision making.

Over the past few years, a range of regulatory measures have been introduced to increase competition and to create a more transparent and equitable digital society including:

• Open Banking - various jurisdictions globally
• The General Data Protection Regulation (GDPR) – Europe
• The Consumer Data Right (CDR) - Australia
• The Data Governance Act (DGA) - Europe

These new and evolving regulations aim to address the asymmetry in markets, data access, data governance and increasingly artificial intelligence.

Increasingly the exponential need for data, identity and security management provides the opportunity for trusted organisations and intermediaries to leverage new value driven business models that mitigate risk and increase productivity.

In this context, financial incentives move away from data collection and towards the outcomes made possible through establishing trust and enabling personalisation and better decision making, resulting in two important business models:

1. 1. Net New Value: Enabling digital trust through mediation, verification and risk mitigation services. Typically, a trusted party pursuing this business model will be able to:
2. Verify data at source
3. Prove provenance or data integrity
4. Manage risk
5. Mitigate fraud
6. Connect and authenticate parties in a trusted ecosystem
7. Provide infrastructure, governance and/or business rules
8. Enable audit and dispute resolution

1. 2. Time to Value: Enabling higher productivity through reduction in costs and time to value across digital channels. Typically, a trusted party pursuing this business model will be able to:
2. Reduce time and friction when onboarding to a service
3. Provide service orchestration reducing the need for over collection of data
4. Improve customer experience and reduce back-office processes
5. Manage data consent and compliance
6. Enable compliant access to data for pricing and personalisation
7. Connect network actors under a common business framework and/or scheme
8. Incentivise, reward and protect data subjects including decision enablement.