Trends #0048 — Data as a Service

Problem

You need to make better decisions.

Solution

Data as a Service (DaaS) bridges the gap between perception and reality.

Players

DaaS Companies

DaaS Marketplaces

Predictions

Powerful services will move downmarket. Acxiom now competes with self-serve models like Clearbit. Clearview faces consumer-side alternatives like PimEyes.
High-fidelity shadow profiles will emerge. Lead enrichment services build profiles of prospective customers. Facial recognition takes this a step further.
Real-time shadow profiles will emerge. Social media firehoses increase the recency of what's available.

Opportunities

Help consumers and companies make better decisions.
- JungleScout: What should I sell on Amazon?
- CamelCamelCamel: When should I buy from Amazon?
- Hypetrace: Which influencers should I sponsor?
- Scott's Cheap Flights : Where should I go?
Build a paid community on top of data. See Altan Insights. Users who share interests in data may have shared values and identities.
Brand a metric to escape competition. See Zestimate, Walk Score and KBB.

Key Lessons

Data helps you bridge gaps between perception and reality. The lower your spread, the better your decisions.
Data is a means to an end. Insights are closer to the "job to be done."
The more data is shared, the less valuable it becomes:
- Shared lead lists have low close rates
- Shared flight deals are sold out
- Shared credit card transactions are priced into stocks
- Shared travel destinations are busy and expensive
- Shared marketplace listings are expensive or unavailable

Haters

"'Data are,' not 'Data is'"

That sounds weird to say. And write.

"All data doesn't become less valuable the more it's shared."

In cooperative environments like public health, sure. In competitive environments, the model holds.

"DaaS companies don't have a moat."

First-party data sources have an obvious moat. Third-party DaaS competes on distribution, design, and infrastructure.

"The problem is bigger than bridging gaps between perception and reality."

Some DaaS companies give you data that you can pull yourself, but faster.

"DaaS isn't always about making better decisions."

Cleaning The Glass customers may pay for the joy of knowing. This is an exception.

"This is scary. What about data privacy?"

When's the last time you read terms and conditions? We're trading privacy for convenience.

"Some companies will want data, not insights."

Sure. Commoditized answers don't lead to competitive edges.

"Data privacy and ownership will prevail."

When it becomes convenient. Plausible and DuckDuckGo have users. So does the DVORAK keyboard. Whether these cross the chasm isn't a matter of right or wrong, but human nature.