Proprietary data potential
Incumbents have a gold mine of data but struggle to unlock it
Every company is worried about their margins. It is much easier to cut costs than to look for new revenues. Looking for new revenues requires a lot of investment to develop a product, scale it, prepare supply chain and delivery. However, there is a treasure chest hidden that any incumbent has - mountains of proprietary data. Let's take an example with Mitsubishi HVACs:
In 2019 approximately 6 million consumer HVAC units were sold in US. Assuming that Mitsubishi corporation has around 17% of market share, they sold approximately 1 million units. Each units comes with user manual, service manual and a lot of documentation that it is either paper or PDF files. This is how air filter maintenance looks like (a screenshot from a file).
The problem here is that you, a consumer, have to remember about those two weeks. Now add here every single appliance in your home - you have to remember the maintenance periods of every single one of them which is not the most important piece of information to keep in your mind. And it is pretty clear - everything that declutters our life is an opportunity.
And here Mitsubishi and every electrical appliance vendor can make extra revenue. By converting all this documentation and key data into API service.
If then Mitsubishi decides to charge $50 per year for API service access per unit, they are looking at approximately $50 million extra revenues in US only. Just because they have the documentation. A lot of home apps, service companies, productivity apps and other innovative companies would happily use those services to create new features for their users.
It seems logical to do it, but the problem is that there are two items that scare any leader. Number one is an upfront cost to scan all those documents. It is enormous because you need people to confirm that everything is captured correctly (volume task). And number two is that the benefits are yet to be seen. Therefore, a bright guy cannot really prove it works because there is no data to prove that it works. Enter Bitskout!
If we can take all the documents, split them into pages, and then create a campaign where an employee gets a page from a manual on the left side, and a form on the right side asking to specify what it is on that page or confirm that the automated scan was done correctly. And then distribute it to all company's employees for a reward per submission ($0.30 per page), the cost would be dramatically decrease. And the engagement would go up. The same principle is behind CAPTCHA and "I am not a robot" functionalities.
This way the proprietary data that you already have can be put back to work, generate extra revenues, raise productivity, improve engagement of your employees and give an opportunity to start real digital transformation.
We run a workshop with all our clients to identify such opportunities and break them down to volume tasks. Contact us if you are interested or have any questions!
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