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During every episode of Antiques Roadshow, there’s at least one crowd-favorite story that goes something like this:
A person finds something old and a little unusual. They may not know who made it or exactly what it’s for. They certainly don’t think about it daily because it’s been tucked away safely in a drawer for a while. Their grandmother had it in her house growing up, or their great-uncle brought it back from his travels, and they’ve taken on the responsibility of storing it because “maybe it’ll be worth something someday.”
The person suspects that the object has value precisely because it’s old and has a good story. And much to the delight of the audience, the appraiser takes one look and gasps, “This is a very valuable piece!” We all find out together that this little piece could be worth thousands of dollars at auction after decades of storage.
This story has a similar start to what happens in many organizations undertaking digital transformation. They have data stored away because it might be worth something in the future, but much of the data isn’t providing any value. It’s an asset with unknown value, and that value can only be understood when it “is taken out of the drawer” and assessed. Here’s why a shift in mindset could finally bring the value of this type of data to its full potential.
We’ve heard many analogies about data—it’s the new gold, the new oil, the new darling product. We understand that it has potential value like our Antiques Roadshow object above. So, what happens? Companies begin hoarding data and tucking it away into storage where it goes mostly unused.
The Modern Data Company (Modern) prefers a different analogy: data is the new oxygen. A person can store all the oxygen they can but will die in minutes if they don’t use it. Oxygen must be brought into the body and processed to have any value (life), and data must follow the same process.
Treating data like an asset shifts this perspective from something to hoard to something that, with regular use, can grow in value over time. It is plentiful, and all companies need it to move throughout their organizations to survive.
Data itself isn’t worth anything; the value of data lies in how it is used. Some of the potential impacts of valuable data in use on an organization are:
These are not the only examples of potential value data can create for an organization, but they’re good illustrations. While some companies may be able to extract value through selling data, the vast majority of companies will evaluate their data’s worth by the value it creates through usage.
In Douglas B. Laney’s Infonomics — outlined wonderfully in this post — we find several different methods of information valuation that can help companies assess the potential value data has when put into use. After all, the centerpiece of Antiques Roadshow is the assessment of value by an expert. You must have a way to similarly assess the value of your data. Here are a few approaches to consider:
These methods provide an index for improving data quality and direction for data management. Companies can also use financial evaluation models to account for things like the costs of maintaining and securing data.
Using valuation models like these, it’s possible to make it clear just how impactful data can be for a company. Data can transform how a company makes decisions. It can validate a company’s efforts to transform digitally. It can identify new revenue opportunities and jumpstart innovation in research and development.
All of this value requires that companies treat data like an important asset. Unlocking data from silos and democratizing access infuse the entire organization with the “oxygen” of data so that it becomes a living part of the business. One of the first steps is to do a formal assessment of the value of your data in the spirit of the experts on Antiques Roadshow !
DataOS was built to help companies put data into use by bringing it safely out of storage, breaking down silos, and finally making it available for everyone in the enterprise.Download our latest white paper “A Modern Data Strategy for Enterprises” to discover how to unlock the value of data by making it usable and accessible.
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