The challenge and opportunity facing many Information Services companies is figuring out how to leverage and extract incremental value from legacy businesses.
The knowledge base, expertise, culture and execution that built successful legacy businesses often are not what the doctor ordered when the time comes to re-purpose and re-package the old into something new.
In the case of Information Services, the expert hands that collected, cleansed and published data may not be the hands required to take those early commercial efforts to the next level. New DNA may be required – DNA that is expert in predictive analytics (as an example), across the spectrum of supervised and unsupervised learning.
This opportunity is especially true for technology/ information services vendors that serve customers across data-rich industries such as Financial Services (consumer and commercial banking; asset management); Insurance (P&C, life, health); Retail (eCommerce as well as brick & mortar); Energy; Healthcare and Manufacturing to name a few.
Predictive Analytics expertise is a limited commodity and I would expect the valuations of predictive analytics firms to increase over time. Further, I would expect the same for those Information Services companies that can successfully execute the transition to predictive analytics as a core competency.