Enterprising Ideas Topic
  • Big Data & Internet of Things (IoT)
Enterprising Ideas
December 14, 2017

Leveraging Data to Secure a Vibrant Future

MHT Partners  | Business & Information Services Investment Bank

The proliferation of the internet and smartphones in modern society has driven entrepreneurs to seek new ways to leverage data to profitably change consumer behavior. Companies are finding that their ability to collect, analyze and develop insights from consumer data can lead to sustainable competitive advantages. These competitive advantages are presenting themselves in a variety of ways, including vast improvements in a company’s products and services. These improvements can often drive powerful network effects, in which companies are able to attract more customers and in turn generate more data.

In addition to collecting and analyzing significantly more data during normal operations, entrepreneurs are reshaping corporate strategy to embrace data and technology and allocating resources to capitalize on the data its products and services create. This entails strategic workforce planning centered around hiring top talent with digital skills.

This “Big Data” movement is no longer just for big companies, it is also serving as a compelling tool for innovation across a variety of niche industries. Additionally, entrepreneurs are deriving benefits from improved decision making and increased organizational efficiencies, a dynamic that can serve as a significant barrier-to-entry. This dynamic is a powerful motivator for entrepreneurs to adopt a data-first mindset, as many long-standing industries are being disrupted by new technology at a furious pace.

MHT Partners believes the search for robust and valuable data sources will continue to drive M&A activity for the foreseeable future. As a result, those companies with well-developed data strategies will command higher valuation multiples.

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