B2B Data & Information

But a rapidly evolving market poses challenges for data & information businesses looking to grow

Macro uncertainty, increasing data-literacy, and the emergence of generative AI are driving massive demand for data, information and, ultimately, insights. Businesses with must-have data or content are well-placed to ride this wave, but success is not guaranteed. The very same factors driving this surge in demand are driving significant changes in how customers want to consume data, shaking up established commercial models and bringing new challenges to navigate.

As businesses have become more sophisticated in their usage of data, there has been a marked increase in demand for delivery via API and cloud-based data platforms. Whilst this typically unlocks new, high-value use cases and drives sticky, enterprise-wide adoption, it poses significant monetization challenges. Traditional “per-seat” price models are often no longer fit for purpose, but what replaces them is nuanced and varies from business to business.

The rapid emergence of generative AI also poses both risks and opportunities. Some data & information businesses will not survive; those that rely on simple curation of widely available data sources. Simple chat interfaces are rapidly becoming table stakes. Businesses need to control and monetize the use of their data in RAG models, develop genuinely valuable workflow tools, and choose channel partners carefully.

The businesses that succeed will be deep in understanding customer needs and willingness to pay, and the value they deliver vs. the alternatives that exist. This will manifest itself in fit-for-purpose commercial models that are effective at both driving and extracting value, underpinned by the requisite sales set-up and capabilities.