Open AI, Facebook Ads, and Bolt Make it Obvious — Data as a Service is the Future.
How companies like Open AI use the Data-as-a-service to drive revenue and growth in their business.
Everything in tech today is a service.
You can read more about the first three service models before you jump straight into the Data-as-a-Service(DaaS)
- SaaS business model
- Pay-as-you business model
- API business model
What is the Data-As-A-Service Business model?
Companies with data-driven business models base their core business on data.
Examples: Open AI, Facebook Ads, Bolt, etc.
As famously said by Alexandr Wang(CEO of Scale)
“Everything in machine learning and AI work on top of a large amount of dataset. The more you have it the better it is”
Types of data as Service business model
1. Data Users
Businesses that use data to form strategies and build better products. Example Fitbit
Fitbit and Apple watch collect data like your Age, Weight, Activity level, and Heart Rate and build ECG to showcase and notify you about your health
2. Data Supplier (Information Orchestrator)
Businesses that are primarily involved in the trading of data.
Example Nielsen, Statista, etc
- These firms are in the business of collecting and selling primary and secondary data from rural to Urban data sets across age groups to have a complete picture.
- This is super helpful for companies to expand into a new product category or in international market expansion.
3. Advertisement Intermediaries (Delivery Networks):
The delivery network aggregates user data like interest, income, and location to show more personalized ads to increase the purchase.
Example Meta and Google
The more data an intermediary collects, the more paying clients it gets.
4. Data Tools (Data Facilitators)
Businesses that focus on providing data collection and handling tools like storage media, servers, workstations, scanners, data collection, analysis and visualization software, etc.
Examples: AWS, Databricks, Snowflakes, etc.
How to implement a Data-as-a-service business model?
Step 1 — First Collect the data
Step 2 — Make data a key resource in the business model
Step 3 — Find a new way to add value
Step 1 First Collect the data
Either Platform collects the data manually (Open AI) or allows the user to use the product for free (Facebook).
- Open AI — The more someone uses the APIs the better the ML model becomes.
- Facebook Ads — The more you use Instagram the more personalized ads you will get.
- Bolt — One-click checkout experience by fetching your past data.
Step 2 Data as a key resource for business models
The Value is generated by making data the company’s key resource.
- Open AI- The more you use the API to fetch data the more you pay(Token based)
- Facebook Ads — The more the customer data point, the better the ads targeting, and the more the revenue.
- Bolt — More the websites use a bolt, the faster the checkout experience.
Step 3 A new way to add value
Companies are building their product on top of Open AI
Copy AI uses GPT3 a machine learning library from Open AI which builds by reading trillions of words from the internet.
Summarising Data-As-A-Service Business model for Open AI
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