Value Creation Model

One of the biggest challenges of big data is how to create value from big data.

We have developed the big data value creation model to show how this value creation occurs

This model has four elements:

1.Big data assets

2.Big data capabilities

4.Big data analytics

5.Big data value

BIG DATA ASSETS

"An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations."

These assets can be tangible or intangible.

Tangible or sixed assets are long-term resources, such as plants, equipment, and buildings.

Intangible assets are economic resources that have no physical presence. They include patents, trademarks, copyrights, and goodwill. In the past, customer databases were considered important assets for firms (Srivastava, Tasadduq, & Fahey, 1998).

For example, these databases could be used to creat estronger relationships with customers, achieve higher loyalty, and create more efficient andeffective (cross)-selling techniques. In an era of big data, the data are no longer rare.

One could actually argue that the data are no longer that valuable, as data are omnipresent, can be collected in multiple ways and are frequently publicly available to many firms (e.g. dataon online reviews). In principle, we strongly sympathize with this view. However, we also observe that within firms there is actually a lack of knowledge on the mere presence of data within the firm itself and outside the firm. For example, one of the largest cable manufacturing companies in Europe only recently discovered that by diving into some internal billing data, they could gain valuable insights on loyalty and customer lifetimevalue (CLV) developments.

BIG DATA CAPABILITIES

Value of data is not in the mere presence of the data (databases), but in the capabilities able to exploit or create products from these data.