- Data can be valuable if used properly or dangerous when mishandled.
- The organization needs to understand the value of their data before they can establish proper data management practice.
- Data is not considered a capital asset unless there is a financial transaction (e.g. buying or selling data assets).
- Data valuation is not easy, and it costs money to collect, store, and maintain data.
Our Advice
Critical Insight
- Data always outlives people, processes, and technology. They all come and go, while data remains.
- Oil is a limited resource, data is not. Contrary to oil, data is likely to grow over time.
- Data is likely to outlast all other current popular financial instruments including currency, assets, or commodities.
- Data is used internally and externally and can easily be replicated or combined.
- Data is beyond currency, assets, or commodities and needs to be a category of its own.
Impact and Result
- Every organization must calculate the value of their data. This will enable organizations to become truly data-driven.
- Too much time has been spent arguing different methods of valuation. An organization must settle on valuation that is acceptable to all its stakeholders.
- Align data governance and data management to data valuation. Often organizations struggle to justify data initiatives due to lack of visibility in data valuation.
- Establish appropriate roles and responsibilities and ensure alignment to a common set of goals as a foundation to get the most accurate future data valuation for your organization.
- Assess organization data assets and implementation roadmap that considers the necessary competencies and capabilities and their dependencies in moving towards the higher maturity of data assets.
Mandate Data Valuation Before It’s Mandated Research & Tools
Start here – read the Executive Brief
Read our concise Executive Brief to understand the value associated with the organization's data. Review Info-Tech’s methodology for assessing data value and justifying your data initiatives with a value proposition.Besides the small introduction, subscribers and consulting clients within this management domain have access to:
- Mandate Data Valuation Before It’s Mandated – Phases 1-3
- Data Valuation Tool
1. Demystify data valuation
Understand the benefits of data valuation.
- Mandate Data Valuation Before It’s Mandated – Phase 1: Demystify Data Valuation
2. Data value chain
Learn about the data value chain framework and preview the step-by-step guide to start collecting data sources.
- Mandate Data Valuation Before It’s Mandated – Phase 2: Data Value Chain
3. Data value assessment
Mature your data valuation by putting in the valuation dimensions and metrics. Establish documented results that can be leveraged to demonstrate value in your data assets.
- Mandate Data Valuation Before It’s Mandated – Phase 3: Data Value Assessment
Workshop: Mandate Data Valuation Before It’s Mandated
Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
1 Understand the Value of Data Valuation
The Purpose
Explain data valuation approach and value proposition.
Key Benefits Achieved
A clear understanding and case for data valuation.
Activities
1.1 Review common business data sources and how the organization will benefit from data valuation assessment.
1.2 Understand Info-Tech’s data valuation framework.
Outputs
Organization data valuation priorities
2 Capture Organization Data Value Chain
The Purpose
Capture data sources and data collection methods.
Key Benefits Achieved
A clear understanding of the data value chain.
Activities
2.1 Assess data sources and data collection methods.
2.2 Understand key insights and value proposition.
2.3 Capture data value chain.
Outputs
Data Valuation Tool
3 Data Valuation Framework
The Purpose
Leverage the data valuation framework.
Key Benefits Achieved
Capture key data valuation dimensions and align with data value chain.
Activities
3.1 Introduce data valuation framework.
3.2 Discuss key data valuation dimensions.
3.3 Align data value dimension to data value chain.
Outputs
Data Valuation Tool
4 Plan for Continuous Improvement
The Purpose
Improve organization’s data value.
Key Benefits Achieved
Continue to improve data value.
Activities
4.1 Capture data valuation metrics.
4.2 Define data valuation for continuous monitoring.
4.3 Create a communication plan.
4.4 Define a plan for continuous improvements.
Outputs
Data valuation metrics
Data Valuation Communication Plan