If Data is the New Oil, How Should You Value It?

By now, everyone has heard the trope that “data is the new oil”. Data is certainly valuable, but it has not been easy to refine. Where oil is a commodity, data is more company-specific. Companies have incentives to ensure their data remains safeguarded, whether it be to keep insights about their most valuable customers hidden, to ensure they remain compliant with regulations, or countless other reasons.

According to an EDQ survey, 88% of companies see a direct effect of inaccurate data on their bottom line, leading to an estimated 12% revenue loss. This raises two implications:

1. 88% of companies are falling behind and are having a difficult time catching up. A 12% revenue increase is equal to approximately $8T in global value. If adopting a better data strategy was easy, there is enough incentive where most companies capable of effective data management would have done so by now.

2. The 12% of companies that are not experiencing data quality issues have a significant competitive advantage, and the value of this advantage is sizable enough to reinvest in extending the lead they have over their competitors.

Both categories of companies would benefit from leveraging Proof Zero’s patented technology to improve their data fidelity. Proof Zero enriches disparate data sources using a “zero-knowledge” methodology, giving Proof Zero the ability to allow companies to unleash the full value of their data without seeing it or storing it. We are leading a data revolution that can be broken down into three concepts: accelerating data strategies, leveraging a first-party data network, and managing consent.

1) Accelerating Data Strategies

The overwhelming majority of companies are not unleashing the full value of their data. And it’s tough to blame them.

A lot of blue-chip companies grew through acquisition. These acquisitions created data silos or disparate data sources that often require complex integrations. And even if the integration is successful, the data itself is often so inaccurate that it invalidates the time and cost that went into the project.

For instance, my bank has only asked me to update my customer information (i.e., address, job, etc.) maybe 3 times in the 12 years I’ve been a customer. Given how much this data can correlate with actionable business intelligence, my bank could improve my customer experience by leveraging other datasets to enhance their data accuracy.

Proof Zero builds on data fabric solutions that stitch together disparate datasets to deliver a unified customer experience that improves the quality and integrity of customer data. With a single, cohesive data asset, Proof Zero-enabled companies can track advanced analytics and make better decisions.

2) Leveraging a First-Party Data Network

What makes Proof Zero special is its ability to enrich data without needing to store it or even see it. Proof Zero can act as a “Data Switzerland” between data silos, lines of business, and even entire companies. Proof Zero ensures that data does not leak between data sources, keeps data partners compliant with regulations, and improves each partner’s data fidelity.

Let’s look at an example. Bank 1 and Bank 2 are trying to catch fraudsters. But they are restricted as they can only leverage the insights that can be discovered in their data. Proof Zero can analyze the structure of the datasets to create a marketplace to value the number of fraudsters that Bank 1 and Bank 2 can reveal in the other party’s data. While activities like this were once thought to be risky, Proof Zero’s “zero-knowledge” methods enable a safe marketplace to efficiently unlock the value of all partners’ data. This same concept goes well beyond fraud use cases and can help every company in every industry enhance their data fidelity.

3) Managing Consent

As evidenced by the recent House Judiciary Subcommittee that interviewed four of the biggest tech CEO’s in the world, it is reasonable to expect lawmakers to better regulate how companies use customer data and gather consent from their customers.

Proof Zero’s customer-focused consent management solution allows organizations to interactively amend and update terms and conditions and is working with financial institutions to create the first true open banking experience.

What does this mean?

This is a big step forward. Technology is advancing at a quick enough pace that will demand a fundamental shift in how the average company thinks about their data. Proof Zero puts security and privacy first in a solution that enables companies to unleash the full value of their data. The only question that remains is does your company want to be part of the future or is your company comfortable being left behind in the bottom 88%?

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