Data is rapidly becoming a new form of currency – It is
bought, sold and protected in ways similar to currency and the commodities that
back it. There are a variety of examples
of companies that have been built around the idea of collecting and using data
in creative ways, enabling business models not previously possible. Facebook, Google, Yelp, Groupon and a host of
other companies across many industries have embraced this model of using data
in new ways to create new business models.
But how do we value data?
How do we assign an exchange rate to something that is very much valued
in the eye of the beholder?
Value takes many forms.
Using a financial metric is one way, assigning a price, or the impact to
the business. But ultimately value is
set by the influence an item has on the world around it. When it comes to data, the value has three components:
- The cost of gathering the data
- The cost to replace any lost data
- The potential for future gains because of the insight gained from the data
Data is rapidly becoming the most important commodity of
all. Companies buy it, trade it, sell
it, insure it and use it as leverage in negotiations. Data has rapidly eclipsed the traditional,
tangible assets of business as how a company is valued on the market and to its
customers.
Many successful companies today work to ensure that have a
large customer base to pull from; they leverage that base to collect as many
details as possible on customers’ habits, motives and behaviors; and in turn
companies use that information to grow their markets, their attach rates and
their business.
As the worlds’ economy continues to shift towards services
and intellectual offerings, and away from traditional manufacturing, data will
only become more valuable. Over time more and more companies will have to
ensure they have proper corporate policies in place to track and protect the
data that drives the organization and ensure they can maintain a competitive
advantage.
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