Your Vogue New Subsidiary: A Data Company

Editor’s Note: This article was originally authored by our colleague and BARC Fellow, Douglas Laney, and was first published on Forbes.com. We are republishing it with full permission, as we believe its insights are highly relevant to the topics we cover and valuable for our community.

The independent “Data Company” or “DataCo” is a separate corporate entity whose sole objective is to manage and extract greater value from its parent company’s data. As organizations mature in their data strategies, the idea of spinning off data operations into a dedicated subsidiary is gaining significant traction—and for good reason.

Creating a DataCo provides several strategic benefits. First, it establishes clear ownership and accountability for data as a business asset. When data has its own P&L, it is managed with the same rigor as any other product line. Second, it can unlock new revenue streams by productizing data assets for external consumption, something that is often difficult to do within the confines of a traditional corporate structure.

Furthermore, a separate legal entity can create a more attractive environment for attracting and retaining top data and analytics talent, who may be drawn to a more focused, data-centric culture. It can also provide a cleaner mechanism for data valuation and even for using data assets as collateral for financing. While not a fit for every organization, the DataCo model is a powerful strategic option for companies that are serious about maximizing the return on their most valuable asset.

Creating a “DataCo” is a powerful structural step towards treating data as an asset. To fully capitalize on this structure, leaders must understand the specific monetization strategies that are proving most effective in the market today. For those interested in this deeper strategic layer, our BARC+ subscription offers unrestricted access to our full research library. A relevant starting point is our analysis of the data monetization trends shaping the industry.