B2C companies currently rely on the advertising ecosystem (Ad Networks, DSPs, SSPs and Ad Exchanges) for customer engagement. If a more cost effective alternative exists for acquisition, conversion and retention exists, then they will be persuaded to allocate budget. That budget will become the primary revenue source for a system of MyData Operators, accessed through the Value Exchanges.
Operators
MyData Operators are “actors that provide infrastructure for human-centric personal data management and governance”. The reference model maps the digital rights of humans onto systems and legislative tiers as 9 functional elements.
The Perpetual Data Machine
There is a cyclic flow of Personal Data moving from consumers, through organizations that harvest data, then to the data refineries that turn that data into value which is realized by a system of agents. The MyData Operators model aims to give consumers agency over how that data is collected, refined and shared.
The Importance of Business Models
For individuals to gain agency over their data, a complete ecosystem needs to evolve, an ecosystem that will provide alternative flows for personal data that provide consumers with transparency, governance and control.
However, for such an ecosystem to exist and thrive, it needs a viable business model. The business model would include the legislative components funded by governments, and standards bodies that would presumably be set up as foundations or as part of already funded industry bodies.
However the success of the ecosystem relies on commercial revenues derived from B2B, B2G or B2C propositions.
Following the Money
In 2018 US digital advertising exceeded $100B per year flowing from companies trying to reach individual customers in their personal and professional roles. The flow originated with the merchants and DTC brands trying to reach customers via advertising. That same flow of money is one potential source of revenue for an ecosystem of MyData Operators
Diverting the Flow of Money
MyData defines ‘Value Exchanges’ as facilitators of accounting and value capture (money, credit, reputation etc.) in return for data. I see the Value Exchanges as key to releasing money from the current advertising and marketing revenue flows. They will do this by providing a better return on investment for at least a portion of the advertising or marketing budget. This revenue stream will propagate through the ecosystem funding the other functional elements.
Product Management
The value exchange must equally serve businesses and consumers. The data refining, sharing and enablement they do will constitute that value. Out of necessity they will develop their own Personal Data stores , Data Transfer, and Data Management components. In time as consumer volumes grow, cost effective specialist service providers will emerge to offer these services commercially.