McKinsey Report. Data As A Product

MCKINSEY Data Report

A report by McKinsey & Company published in January 2021 estimated that companies could unlock up to $3.6 trillion in value annually by fully harnessing the potential of data and analytics. The report notes that many organizations are not fully leveraging their data assets, and that the potential value could be unlocked through better data management, analytics, and decision-making.

“Global AI Survey: AI proves its worth, but few scale impact” report by McKinsey & Company:

https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai-in-2022-and-a-half-decade-in-review

https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-data-driven-enterprise-of-2025

An article by the Harvard Business Review published in August 2021 argued that unlocking the value of data requires a fundamental shift in how organizations think about data. The article notes that many companies still treat data as a cost center rather than a strategic asset, and that unlocking the full value of data requires investments in data infrastructure, talent, and analytics capabilities.

DATA USED

Exploration of various data types

DATA VALUATION

Various

Suki.AI Medical Data

SUKI.AI

Suki.AI uses its medical records data to train its voice-enabled digital assistant for physicians. The company has raised funds from investors including Flare Capital Partners, First Round Capital, and Venrock.

DATA USED

Medical records

DATA VALUATION

Suki.AI raised $20 million in 2021, valuing the company at around $200 million, based on the value of its medical records dataset.

Fitbit Wearable Data

FITBIT

In 2017, Fitbit partnered with a life insurance company, John Hancock, to allow policyholders to earn discounts on their premiums by sharing their fitness data. The partnership was part of John Hancock’s Vitality program, which aims to promote healthy living by rewarding customers for healthy behaviors. Fitbit’s wearable fitness data was a key part of the program and helped to create a new revenue stream for the company. Google’s acquisition of Fitbit was largely driven by the value of the company’s health and fitness data, which could be used to improve Google’s healthcare initiatives and further the development of its artificial intelligence capabilities.

https://www.reuters.com/article/us-manulife-financi-john-hancock-lifeins/strap-on-the-fitbit-john-hancock-to-sell-only-interactive-life-insurance-idUSKCN1LZ1WL

Others Doing The Same In The Industry: Apple has also monetized health and fitness data from its wearable devices through its HealthKit platform, which is used by healthcare providers and researchers.

DATA USED

Wearable fitness data

DATA VALUATION

Fitbit’s wearable fitness data was estimated to be worth up to $1 billion in 2015 by ABI Research. In 2018, Google acquired Fitbit for $2.1 billion

Caesars Loyalty Data

Caesars Entertainment

Caesars was able to use its customer loyalty program data to secure a $185 million loan in 2018. The data was used to demonstrate the value of Caesars’ customer base and their spending patterns, which helped to reduce the interest rate on the loan.

Others Doing The Same In The Industry: MGM Resorts International sold its loyalty program, M Life Rewards, to Blackstone Group for $2 billion in 2019.

DATA USED

Customer loyalty program data

DATA VALUATION

Caesars estimated the value of its customer loyalty program data at over $1 billion.

Highway England Road Data

HIGHWAYS ENGLAND

Exploring ways to use its data to improve traffic management and safety on the country’s highways. By analyzing traffic and weather patterns, the organization can make more informed decisions about road closures, speed limits, and other measures that can impact traffic flow and safety. The organization is also exploring ways to monetize its data through partnerships with technology companies.

Others Doing The Same In The Industry: The Virginia Department of Transportation uses data collected from sensors on highways to improve traffic flow and reduce congestion.

DATA USED

Traffic and road condition data

DATA VALUATION

The organization believes that its traffic and road condition data could be worth up to £7 billion.

American Airlines Rewards

American airlines

American Airlines used its AAdvantage rewards program data to secure a $1.2 billion loan in 2020. The airline was able to use the data to show lenders that the rewards program had significant value, which could be monetized in the future. American Airlines was able to secure the debt at lower interest rates due to the value of the AAdvantage program.

Others Doing The Same In The Industry: United Airlines raised $6.5 billion against Mileage Plus, valuing the program at $21.9 billion. Delta Air Lines raised $9 billion backed by the SkyMiles program at an average rate of 4.75%. Southwest Airlines did not mortgage its Rapid Rewards program, but did get Chase to frontload the purchase of points for 2021 to the tune of $600 million.

DATA USED

AAdvantage rewards program data

DATA VALUATION

The airline valued its loyalty program at approximately $31 billion