He Who Owns the Data Wins-Revisited.

One of fundamental challenges of WEB 2.0 is the revenue model. It is a fallacy to believe that everyone can build a universal sustainable business model based on social networking. If you draw a comparison in the real world, think of it as running a Bistro. If you don't have the right location, if you don't have the right brand of beans, if you don't stay current with your decor, if you don't.....you will lose traffic to the next greatest bistro that just went up across the street,

During the first generation of the WEB, I advocated " He who owns the data WINS". Search engines had just established themselves and everyone was rushing to cut a deal. Search engines still have a key role in your business, but they should not OWN your business. If there is no content, search engines lose their juice. If you are in a favored position to own a piece of the content, then take it.  You can share the data, let others examine the data, but maintain possession of the data.   If you own the data, then you will Win.

Since was first posted in 2008, it has become more relevant even today.  With the emerging concept of big data, the aggregation of possession of data has become more critical.  With social media it is again more critically important.  Making social engagement relevant depends on expertise and subject matter (data again).

The Yellow Page industry missed the window of opportunity in leveraging their datasets.  Within those mainframes and pagination systems, were vast stores of customer data ripe for a new business model.  Very few competitor publishers understood this and even fewer leveraged the data.

The Magazine industry is another example of possessing  a reserve of rich content.  Content that would be linked to the advertising base for relationships and data mining.

To go from possession of the data to leveraging the data requires significant investment and more critically, an understanding of how the the data model needs to be constructed.

Editor's Note:  This Post was first published on 5/22/2008.

About Sprawlgeek.
A Seasoned Technology Visionary possessing a deep understanding of technology and business processes.

Doug has accumulated over 35 years of experience in the technology and media markets. His broad career has ranged from leading Research and Development work for a 300+ million dollar company to an E-Government startup. His efforts have been recognized by major trade associations as well as Tier 1 clients.

Doug is now a private consultant and continues to provide his insights to the industry.