ECO Framework Evaluates Data

A framework for evaluating and building successful data businesses, focusing on three key elements that determine viability and success potential.

The ECO Framework Core Components

• Edge (E): What advantage does the data provide?

  • Must define clear value proposition upfront
  • Focus on what customers can do with the data
  • Data itself has no intrinsic value - only its application matters
  • Must drive meaningful outcomes for customers

• Collection (C): How feasible is gathering the data?

  • Must have reliable data collection methods
  • Avoid single-source dependencies
  • Consider scalability of collection process
  • Need sustainable ways to maintain data quality
  • Should have multiple collection methods when possible

• Opportunity (O): What's the market potential?

  • Three main verticals for B2B data businesses:
    • Financial services
    • AI companies
    • Sales/Marketing/AdTech
  • Consider total addressable market
  • Look for buyers with significant budgets
  • Target industries where data drives major decisions

Key Principles for Success

• Start narrow and focused

  • Don't try to be too broad initially
  • Build deep expertise in specific area
  • Can expand scope over time

• Focus on high-value segments

  • Target customers who make large monetary decisions
  • Look for industries where information gaps exist
  • Find buyers who can justify premium pricing

• Avoid common pitfalls

  • Don't assume data has inherent value
  • Beware of relying on single data sources
  • Avoid markets with limited budgets
  • Don't target industries that aren't data-driven

Collection Methods Evolution

• Often starts with manual processes

  • "Data janitor work" in beginning
  • Labor-intensive initial collection
  • Proves concept and value

• Graduate to automated systems

  • Build technology to scale collection
  • Develop multiple collection channels
  • Create sustainable data pipelines