Most companies know that their data is important and worth protecting, but a recent report reveals that only a small percentage actually consider what that information is worth financially. When it comes to data analysis, a report from The Economist Intelligence Unit found that most companies across the globe are unsure of how to assess a monetary value of their information. This can be problematic for business analytics to provide a clear picture of a company's assets and total value, but finding an accurate system of measurement can create unique advantages for a business.
Few companies take time to assess data's worth
The Economist Intelligence Unit surveyed executives and board members of 300 businesses across the globe from 18 different industries to find out what companies are doing in terms of information risk management. The results revealed that while many businesses find data to be a valuable asset, only one in 10 companies have actually defined this data in terms of its monetary worth. Conversely, 33 percent have made no effort at all to do this.
Yet, once a company has a firm idea of what its information is worth, the business will have more options to protect this data. Businesses that assign monetary value to their information are then able to insure this valuable aspect of their company, which will give them some peace of mind in the event of a data breach, for instance. Unfortunately, the only way to achieve this kind of protection is to assess value, and this can be tricky.
"It tends to be those that have taken all the reasonable steps, deployed the right controls and monitor their environment already that go for insurance," Stephen Bonner, an information protection partner for "big four" accountancy firm KPMG, told Computing.
Options to deduce monetary value of big data
There is no tried and true method of determining how much a company's information is worth in terms of dollars, but IBM offers a few potential strategies. The Big Data & Analytics Hub on IBM's website suggests that for assessing customer relationship data, measuring the customer lifetime value (CLV) can prove effective. This approach examines the data based on four different values surrounding volume, velocity, variety and veracity. These four aspects focus on the different uses certain data can have for the company. From this assessment, a company can get a better understanding of how the data can impact its business. In turn, this information can be translated into a monetary amount.