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Identifying the value of data

Valuation model for an OEM data strategy in the automotive sector

The client, an original equipment manufacturer (OEM) in the automotive industry, tasked valantic with developing a data valuation model to support its digitalization strategy. This model became the foundation for the company’s successful entry into the vehicle and environmental data business. Today, it serves as a company-wide framework for the long-term evolution of their digitalization strategy.

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Challenge

An automotive OEM sought to enter the vehicle and environmental data business and tasked valantic with developing a data valuation process to support its digitalization strategy.

Consulting approach

valantic created a valuation model by analyzing existing methodologies, aligning supply with demand, and considering data quality and production costs. The model was then tested using a prototype.

Client benefits and solution

The data valuation model now serves as a foundation for determining data value across the company. An Excel-based prototype was implemented, with further development options proposed for future enhancements.

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The Challenge in Detail:

Vehicle sensors are already generating and storing vast amounts of data. The key challenge is determining how to evaluate this data and which pricing mechanisms to apply. The client commissioned valantic to develop a data valuation process as part of their digitalization strategy.  

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Solution & Results in Detail:

The data valuation process was developed in a step-by-step approach:

  • Identification and selection of existing methods: Various options for valuing both monetary and non-monetary IoT data were assessed.
  • Development of a valuation model: A system was created to connect the supply and demand aspects of data provisioning.
  • Consideration of key factors: The model incorporated essential aspects such as data quality, production costs, and specifics of relevant use cases.
  • Implementation and testing: The concept was implemented and tested using sample data to validate its effectiveness.
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Solution and Client Benefits:

Through this project, valantic made a significant contribution to the automotive OEM’s digitalization strategy. The data valuation model serves as the foundation for determining the value of data across the organization. An Excel-based prototype was implemented to test the model, and a proposal for further development of the process has already reached the decision-making stage.

Your Contact

Volker Scholz Managing Partner at mm1

Volker Scholz

Partner & Managing Director

valantic Division Digital Strategy & Analytics