Are you ready to discover the value of your data assets? In a recent webinar with data valuation expert Doug Laney, we learned how critical it is for organizations to measure and manage the value of their data. If you’re not managing your data well, you’re missing out on its potential as a valuable asset.
Prioritizing Data Management Initiatives
Measuring the value of your data can help generate economic value, foster a data-driven culture, and create data marketplaces. Laney explains that by prioritizing data management initiatives, organizations can develop new ideas for data generation, dispose of negative value data assets, and recognize data as a corporate asset.
Recognizing Data as a Corporate Asset
Data valuation is also essential when organizations acquire or acquire a company. Laney gives the example of airlines that have even collateralized their customer loyalty data, valued at three times greater than the valuation of their businesses. This valuation helped them take out loans and recognize data as an asset. When pricing data, it’s essential to differentiate between valuation and pricing. Valuation refers to the asset’s contribution to revenue streams, while pricing is what others are willing to pay for access to the data.
Valuation vs. Pricing
Laney discusses data as a non-depleting asset, so its value can be calculated in various ways simultaneously. Its cost basis, contribution to revenue streams, and market value are all valid ways of measuring its worth. When determining the market value of data, it’s crucial to consider that you’re transferring rights to use the data. To charge more for data, organizations must ensure it’s high quality, timely, accurate, complete, or detailed.
Measuring the value of your data assets is crucial for organizations to leverage their worth fully. Don’t miss out on the potential of your data. Watch the webinar here.