Understanding and Valuing Customer Data
Firms such as Google and Amazon tout the value they generate from the skyrocketing amount of customer data they possess, which support product innovation efforts, tailored offerings, and targeted advertising. The revenues that can be earned by leveraging big data and customer data analytics also are projected to grow more than 50% over the five years from 2015 to 2019, reaching $187 billion worldwide. These sources of revenue reflect a new approach, such that “The capture of such data lies at the heart of the business models of the most successful technology firms (and increasingly, in traditional industries like retail, health care, entertainment and media, finance, and insurance) and government assumptions about citizens’ relationship to the state,” according to Leah Lievrouw, Professor of Information Studies at the University of California-Los Angeles.
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