Measuring the Value of Data (Part Four) –

By neub9
2 Min Read

Data professionals often emphasize the importance of managing data and information as organizational assets. But what does this mean in terms of the actual business value of data and information? This series of articles aims to address these questions and more.

In the first article, we discussed how data and information can create business value. In the second article, we identified data as a unique type of circulating asset and explored its specific characteristics. The third article provided a detailed overview of the processes involved in managing data as an asset.

The next step is to explore how we can measure the business value of data and information assets, and who should be responsible for managing and measuring this value.

Measuring the value of data and information assets is not as simple as putting a value on physical assets. Gartner has suggested six different approaches to evaluating the value of data and information assets, such as measuring intrinsic value, business value, performance value, cost value, market value, and economic value. These measures aim to quantify the value that data and information contribute to an organization.

One approach to measuring value is to use a data-centric process improvement program like Six Sigma, which uses an organization’s data assets to quantify the value of a business process and its improvements.

Who should take on the work of measuring and improving the business value of data and information assets? This responsibility falls on the organization’s chief data officer (CDO) or their delegates. The CDO should create, manage, and leverage data and information assets to enhance business value, as well as measure, record, and report this value to senior management.

Ultimately, it’s important for organizations to focus on managing data and information to create business value and to establish processes for measuring, tracking, and reporting this value. The business value of data and information assets should be a key consideration for all executives and managers when building and modifying business processes.

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