Economy today is consistently becoming data-driven and data-dependent. Businesses face an “analysis paralysis”, when they fail to tap into the huge cache of information, usually collected from multiple touchpoints like social media platforms, websites and other similar web resources. Internet of Things (IoT) adds up to these data-related challenges.
Processed data is changing traditional boundaries and is enabling competitors to move into their industry confidently. A recent survey suggests that nearly two-thirds of the participating organizations 65% expressed their fear of becoming uncompetitive, unless they embrace data processing and management solutions. 27% fear competition from new players in other industries, however; 53% expect to face rivalry from data-enabled start-ups. Enlisted are a few more findings:
- 54% say that investment in getting enterprise data processed in coming years will outstrip past investment.
- 61% acknowledged that processed data is now a driver of revenues in its own right and is becoming as valuable to their businesses as their existing products and services.
- 43% organizations are in either in the process or already have restructured in order to exploit opportunities that processed data offers.
- 36% respondents confessed that due to the strategic importance of Processed Data, they approached data processing solutions partner for necessary data analytics required to gain business insights.
- 52% enterprises found that developing fast insights from data was a challenge due to limitations in the IT development process.
- 77% C-suite executives see the most value of data processing if it can be accessed conveniently and faster, as decision makers increasingly require data in real-time.
This clearly suggests that mastering the management and analysis of data is now the key not just to success but also to business survival. Since, a large number of businesses are increasingly getting data-driven and data-reliant; some questions have surfaced – How information, especially in today’s economy, is or should be, valued?
Is information a valuable asset?
While this question may have numerous affirmative answers, there is a section which disagrees or rather does not consider data as an asset. So, according to the Generally Accepted Accounting Principles (GAAP), data is worthless, with zero value. However; on other hand, for Wall Street data is worth trillions. This, again raises a question, why?
Associating dollars on data is indeed a challenge as far as standard accounting methods are concerned and there are various reasons to it. Usually, an accountant won’t classify data as a tangible asset. So, unlike other property or tangible assets, the value of information cannot be determined as per the parameters accepted by accountants, across the world.
Different from other tangible assets, real value of data largely depends on who possesses it. Data gains more worth when it is with data processing experts, the one who know how to exploit the information for well-informed decisions-making. Despite this, many investors (and hackers intending to steal information) appreciate the value and significance of well-structured information cache.
Even though, data is considered too intangible to derive its worth, it is a very well-known fact that information-related mishaps, including compliance violations or data breaches have resulted into massive loss of tangible assets in form of fines/penalties, or increased litigation and warehousing costs.
Moreover; there have been instances, where C-Suiters have paid a heavy price where some lost their jobs, while some had to face legal heat or answer the relentless press who nudge enterprises whenever there is data seepage.
Governance in place
The time has come when enterprises, instead of treating information as a mere addition needs to change the approach and treat it like other (valuable) corporate assets. Data requires proactive management just like finances or other tangible assets. And for that, thoughtful policies and processes need to be created.
The present situation demands more participation on information governance. It should no longer be limited to IT staff or a team of record managers. Instead, data-governance should be made an integral part of every process conducted by the organization. It should, ideally, include usage guidelines, data asset tracking, security & risk management, and lifecycle management.
Moreover, a proactive and informed team of executives, usually the data processing solution providers, should be employed to routinely monitor underestimated assets, i.e. Data.
Takeaway
Effective information governance is the key. With data on hand, companies can augment their business intelligence and decision-making capabilities to better evaluate situations, avoiding possible pitfalls. Therefore, data, though, hard to value is worth trillions!
