The past decade has seen a dramatic increase in the amount and variety of information that is generated and stored electronically by business enterprises. Storing this increased volume of information has not been a problem to date, but as these information stores grow larger and larger, multiple challenges arise for senior management: namely, questions such as How much is our data worth? Are we storing our data in the most cost-effective way? Are we managing our data effectively and efficiently? Do we know which data is most important? Are we extracting business insight from the right data? Are our data adding to the value of our business? Are our data a liability? What is the potential for monetizing our data? and Do we have an appropriate risk management plan in place to protect our data?
To answer these value-based questions, data must be treated with the same rigor and discipline as other tangible and intangible assets. In other words, corporate data should be treated as a potential asset and should have its own asset valuation methodology that is accepted by the business community, the accounting and valuation community, and other important stakeholder groups. Valuing Data: An Open Framework is a first step in that direction. Its purpose is to:
- Provide the reader with some background on the nature of data
- Present the common categories of business data
- Explain the importance of data management
- Report the current thinking on data valuation
- Offer some business reasons to value data
- Present an open framework--along with some proposed methods--for valuing data
The book does not aim to prescribe exactly how data should be valued monetarily, but rather it is a starting point for a discussion of data valuation with the objective of developing a stakeholder consensus, which, in turn, will become accepted standards and practices.
About the Author: Dewey Ray has spent over 35 years in the IT field in a variety of technical, consulting, and managerial roles. Beginning as a FORTRAN programmer on IBM and Control Data mainframes, his early IT jobs included designing, programming, and implementing a variety of applications and systems. As the IT field evolved, so did his interests, and in the ensuing years Mr. Ray became an Internet and enterprise architecture specialist, while leading several IT consulting practices focused on e-business and distributed system architecture design. His position titles have included Programmer, Systems Analyst, Systems Manager, Senior Systems Engineer, Region Technical Marketing Manager, Principal Consultant, Practice Director, Chief Technology Officer, Chief Information Officer, and Trainer. In addition to his IT roles, his work experience also includes M&A buy-side and sell-side IT due diligence and integration.
