Practical Formulas for Estimating the Value of Quality Data
We often hear that “we need to treat data as a corporate asset,” but what does it actually mean? What value do we get out of treating data as a corporate asset? What does an organization lose (in terms of increased costs and reduced opportunities) by not treating data as an asset? Or put more simply, what is data worth?
Traditional measures of value are based on an asset’s revenue contribution, revenue benefit, or ability to increase productivity. It’s therefore no wonder that most organizations struggle to understand the value of their data. When an asset is as intangible as data, it is difficult (some might say almost impossible) to put a dollar value on that asset.