Revenue Enhancement for Global Risk Database

CLIENT CHALLENGES

The client’s pooled database captured insights on credit default rates, rating migration and the recovery rates of defaulted projects based on data contributed by IFIs on their projects funded in emerging markets. The client approached Acuity for assistance with the following:
- To assess market opportunity and open the database to increase membership
- To assess market opportunity and ascertain fee structure for becoming financially sustainable, while reducing expenses of the founding members
- To evaluate subscription fees, cost structure and additional revenue streams

Acuity structured the project into two main components:
- Prepared a framework to analyse potential member targets by evaluating “degree of fit” of the potential candidates’ focus sectors, current needs and access to similar datasets
- Evaluated a fee structure by understanding subscription fees of similar databases, assessing relevant market participants’ “willingness to pay” for such services and assessing the cost structure of the GEMS consortium with the outsourced data management model

Identified 30+ potential customers to be targeted within MDB/IFIs, private investors and standard-setting bodies
Created a roadmap to harness the USD900-2,000K market opportunity over the following five years
Formulated a fee structure to enable the consortium to be self-sustainable. Recommended additional revenue-enhancing methods such as slicing and dicing the data, and enhanced analytics
Assessed new outreach channels such as data feeds and event sponsorship

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