Data Science Strategy For Dummies

Chapter 22

Introducing Data-driven Business Models

IN THIS CHAPTER

Describing what a business model is

Sorting out the fundamentals of a data-driven business model

Using a framework for data-driven business models

The increased use of data is transforming the way companies do business. With advanced analytics, machine learning, and access to new data sources, companies in one sector can play a role in the products and services of others — even those far removed from their traditional line of business. This blurs the boundaries between industries and changes competitive dynamics. Companies that embrace the full range of opportunities and transform their business models in parallel with these shifts will find new opportunities for revenue streams, customers, products, and services. In this chapter, I describe how you can approach the area of data-driven business models.

Defining Business Models

First you need a working definition of a business model. It’s generally described as the foundation of how an organization creates, delivers, and captures value in economic, social, cultural, or other contexts. The process of business model construction and modification, also called business ...