Data Marketplace Part 1/2 – Trading with data
The emergence of data marketplaces is accompanied by the growth of data as the number of collected data is steadily increasing by governments, businesses and websites. Besides data is recognized as an asset and that you can trade it. Data can be bought and sold, creating data marketplaces. But what is a data market place actually? What are the characteristic? These questions are clarified in this blog article.
A data market place is primarily a special place where data can be sold or bought. It is an economic model for wide access to data. The traded data display different types, as they are also destined for different markets and come from various sources. There is a wealth of data sources, the most common data is from social media, process data/ machine data or Open Data. For example Open Data can be traffic data or even weather data, which can be acquired via the EU Open Data Portal. Additionally, you can also combine data with each other and structure it. This linking of data and the specific formats of the data sources facilitate the use for the buyer. The construct of a data market place can be imagined as a triangle, in the middle stands the data market place itself. At the corners of the triangle are the data providers, the consumers and third parties, which interact in an ecosystem.
The basis for the data market is provided by the data market place. It should have a neutral position with the other participants in order to work equally well for all player. Especially the way in which legal and fiscal conditions are circumvented, as well as governance and financing is of great importance. In addition, standards for high quality, consistency and safety should be met.
At first the data market place makes it possible to make data recognizable and comparable by means of indicators for quality and scope. Afterwards the data is cleaned, formatted and eventually ready for use. Due to a decentralized approach, where the data is transported to the buyer through a secured line, the data integrity and integrity of the subscribers are better protected.
The data provider or supplier grants the data market the right to license their provided data on their behalf according to defined conditions. The main data suppliers are usually companies that collect the data, and authorize sharing.
The data consumers are buying the data from the data suppliers in order to gain important insights by adding another data record to their own business data. These insights are not limited to Analytics, but can also be used to create value for their own customers. In addition, buyers can also bring data back to the market. The data consumers can be companies of all possible industries, but also governments, business and market intelligence agencies, analysts or developers.
Third parties, such as application developers, offer value-adding solutions based on the available market data. Solutions can be, for example, a real-time analysis of the data or the provision of infrastructure and support services. The value of the data is further enhanced by providing a corresponding analysis and facilitating its delivery.
In the second part of the blog data market place – trading data, you will learn among other things about the relevance of the data market places by means of figures and facts as well as some examples.