Assetization: The Strategy of Monetizing Experiences and Data
Designers must understand how intangible elements like data and experiences are being transformed into revenue-generating assets, influencing product development and market strategies.
The MIT Press eBooks · 2020
Key Findings
- 01The primary logic of technoscientific capitalism is shifting from commodification to assetization.
- 02Assetization focuses on generating durable economic rent rather than short-term market gains.
- 03A wide range of intangible and tangible elements, including knowledge, data, experiences, and natural resources, can be 'assetized'.
- 04The process of assetization involves constructing assets through specific interests, activities, skills, organizations, and relations.
Application
Design takeaway
Shift design thinking from creating one-off products to designing systems and experiences that can be continuously monetized as assets.
How to apply
When developing new products or services, consider what aspects beyond the core functionality can be structured as an asset to generate recurring revenue.
Project actions
- 01Consider how your design project could generate ongoing revenue streams beyond the initial sale.
- 02Analyze how user data or interaction patterns in your design could be framed as an asset.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a novel analytical framework for understanding contemporary capitalism.
- +Offers a broad scope by examining assetization across diverse domains.
Limitations
It can be challenging to quantify the 'rent' generated from intangible assets without access to proprietary business data.
Reliability & validity
The validity of the assetization concept as an analytical tool is supported by its application across multiple case studies and disciplines. Reliability would depend on consistent application of the framework in further research.
Think critically
How does the pursuit of durable economic rent through assetization potentially conflict with user-centric design principles focused on immediate user value or privacy?
Design Principles
"Design for durable economic rent by structuring products and services as assets with ongoing revenue streams."
The concept of assetization shifts the focus from traditional product sales to the continuous generation of revenue from an asset. This requires designers to think beyond the physical product and consider how user data, services, and even user experiences can be structured and managed for long-term economic value.
What This Means for Your Design
Think about how you can make money from your design not just once, but over and over again, by treating things like user data or the experience itself as a valuable 'asset'.
How to use in your project
- 1.Use the concept of assetization to analyze the market viability and business model of your design proposal.
- 2.Discuss how your design contributes to or challenges the trend of assetization in its specific industry.
Add to My Project
Quick Cite
(2020). Assetization. The MIT Press eBooks. https://doi.org/10.7551/mitpress/12075.001.0001 Retrieved from https://designdex.org/study/d4012a24-b36e-48a4-81fb-11257d8dcea0/assetization-the-strategy-of-monetizing-experiences-and-data
Paragraph starter
The concept of assetization, as explored in this research, suggests a strategic shift in design practice towards creating and managing revenue-generating assets. This involves framing elements such as user data, intellectual property, and even user experiences as durable sources of economic rent, moving beyond traditional transactional sales models. Understanding this trend is crucial for designing products and services that are not only innovative but also possess sustainable economic viability in contemporary markets.
Source
Questions about this research
- What does the research say about assetization: the strategy of monetizing experiences and data?
- Shift design thinking from creating one-off products to designing systems and experiences that can be continuously monetized as assets. Evidence: The MIT Press eBooks (2020).
- Why does "Assetization: The Strategy of Monetizing Experiences and Data" matter for design?
- The concept of assetization shifts the focus from traditional product sales to the continuous generation of revenue from an asset. This requires designers to think beyond the physical product and consider how user data, services, and even user experiences can be structured and managed for long-term economic value.
- How can designers apply this research?
- Shift design thinking from creating one-off products to designing systems and experiences that can be continuously monetized as assets.
- What were the main findings?
- The primary logic of technoscientific capitalism is shifting from commodification to assetization.. Assetization focuses on generating durable economic rent rather than short-term market gains.. A wide range of intangible and tangible elements, including knowledge, data, experiences, and natural resources, can be 'assetized'.. The process of assetization involves constructing assets through specific interests, activities, skills, organizations, and relations.
- What research method was used?
- Conceptual analysis and case study compilation.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2020 journal from The MIT Press eBooks.
- What should I do differently in my next project?
- When developing new products or services, consider what aspects beyond the core functionality can be structured as an asset to generate recurring revenue.
- What are the limitations?
- The research is primarily theoretical and analytical, offering a framework for understanding rather than specific prescriptive design guidelines.
- Is there evidence that user experiences affects design outcomes?
- The research highlights a fundamental shift in economic strategy where intangible elements like data and user experiences are increasingly being treated as 'assets' designed for continuous revenue generation, rather than just products to be sold. The concept of assetization shifts the focus from traditional product sal Source: The MIT Press eBooks (2020).
- Where does this assetization research apply?
- Technoscientific capitalism, business strategy, product development It sits within innovation & markets research on designdex.org.
Related research topics
user experiences design research · evidence on user experiences · does user experiences improve design outcomes · assetization studies for designers · user experiences and assetization findings · innovation & markets research evidence