Data is worth more than gold
Data is worth more than gold if it is the right data, packaged correctly for consumption and accessible. Recent data acquisitions in the open marketplace has seen multi-million dollar deals over very small sample sized of EXACT MATCH DATA. So this raises a ton of questions from operational and systems and legality and how to package for commerce.
It is no wonder why data is the fastest growing market and will probably lead the way for decades, as industry reports that only 10% of the current data is accessible in a format able to be used which make the “UnMined Data” a literal gold rush but the fact is, the gold veins are growing by the day and every day brings more demand driving value and demand.
How to value healthcare data?
Healthcare data valuation formula is (CPR+PNP)xU=VAL
There are several value calculations but at the end of the day the good ole FREE MARKET calculation is “Whatever a buyer is willing to pay” (CPR) +” Service fees for acquisition and Packaging for consumption” (PNP) X , How the user will use the data (U) = VALUE or “What a seller is willing to take.” (VAL)
How to package data for sale?
The best way to package data for sale is to find a buyer who drives the consumption model. This will then tell you how you need to provide access to the data. Access comes in many formats which will also drive prices.
Data Packaging Options:
Full Ownership- this gives the buyer full access to all data and complete usage. Basically a photocopy without limitations. This was popular early on but the sellers quickly realized that killed future sales and potential related revenue opportunities.
Exact Match- EM was the net iteration that allowed the seller to actually sell different parts of the data to multiple users and allowing for multiple revenue opportunities.
Licensed Data- This is one where the buyer and seller agree to usage of data and contractually play by the rules of the agreement. With such HUGE $$$ at stake, you can guess data users pushed the GREY edges of usage which was bad for the data owners.
VAPOR DATA- This is a new technology that provides access to data on a preformatted platform, which only allows the consumption of exactly the data purchased with a VAPORIZATION trigger if the buyer hits a time limit or access cap the data is no longer usable by the buyer. IT, IN FACT, TURNS INTO VIRTUAL VAPOR! Package correctly this gives the seller the most control and ability to monetize the data.
As you can tell it is a DATA SELLERS MARKET and looks like that will be a trend for decades.
Healthcare data is the hottest commodity of this century.
How to sell your data?
Pre-Defined Buyer – This typically how data owners start down the path of monetization of data. They have a buyer, and they sell.
Brokered Deals – This is a process like real estate, you find an agent that knows the market and helps you come up with a strategy to market and sell your data. he or she will be paid a commission so you better bet they will come up with many ways to monetize your data. If they are with a top firm, they will also come with DEMAND SIDE buyers.
Open Orders: These are orders that are placed by big data consumers who are in need of a certain data set, just waiting for it to come along and have a pre-defined price. The seller can then negotiate from there!
Market Place: There are now mark places popping up that allow for buyers and sellers to connect for a small fee.
What is my data worth?
Healthcare Data Valuations are based on calculations: (CPR+PNP)xU=VAL
The reality is whatever you can get is the value.
Healthcare Data Case Study based on sales.
Pharmaceutical: $3,000,000 for 50,000 records
Research: $1,000,000 for 100,000 records
Marketing: $7,500,000 for 10 million records
BioTech: 10,000 records for EQUITY IN BUSINESS
Hospital network: A recent transaction voted on by a hospital network board would allow for the sale of the data to actually help them get out of receivership and into the black for the first time in over a decade!
As you can see the market is hot, and people are willing to do what it takes to get the data they need.
Healthcare Data Broker or Market place
If you are in the market to buy or sell give us a call 972-800-6670 as we have tools that can help both the buy and sell-side. Deidentified data