Friday, July 31, 2015

Is the "Data Asset" really different?

In June 2015 for the BCS and DAMA I presented a seminar at an event called "Data, the vital organisation enabler" Information is at the Heart of ALL of the Business
During this I raised the question, "is the data asset really that much different form other assets?"  We hear a great deal that Data is an asset, it's got to be managed, few people in the business understands us and so on.

Don't get me wrong, I'm not trying to cast doubt on the importance of data as an asset, but I wanted to raise the level of debate from a subliminal nod to a conscious examination of the characteristics of different "assets" and to compare them with the 'Data asset".



Firstly, let me re-iterate that Information IS absolutely at the heart of the business, my recent white paper talks at some length about this and the diagram here briefly illustrates 4 business architecture disciplines & the vital role of data in each of these.

However what I want to raise here is just what are some of the characteristics of core assets in the business, and if as we all say data IS one of those  key assets, how, if at all do these characteristics differ in the "Data asset" compared with  other common assets that we frequently encounter in our organisations?

 

Assets & Characteristics

So first of all lets have a think about some other "assets"?  I've picked 7 other assets seen across a variety of businesses and tried to compare them with the "data asset". 

The assets I've selected for this comparison are:

* Oil
* Money
* Blood
* People
* Property
* Materials
* Intellectual Property (IP) and of course
* Data.



The characteristics of the assets themselves required more consideration. After much thought and batting the notion around with others I settled upon these 5 characteristics:
  • Is the asset Copyable, i.e. without resorting to the realms of science fiction "replicator" machines
  • Does use of the asset in some way deplete it
  • Is it straightforward, and/or usual practice to ascribe a monetary value to the asset
  • Is the asset a real tangible thing or an abstract concept
  • Does the asset have to be processed in some way to yield value
Now I'm sure that I could have come up with further asset types and asset characteristics, and I may well do so as this analysis develops, but for now these are the ones that I start with.

Analysis 

So let's analyse these assets against the characteristics & see what (if any) conclusions we can draw from it?

Oil

Oil is not copyable, and most definitely using it depletes it.  It is definitely usual practice to give a value to oil (the $50 barrel for example) and it is a real concept. Finally it has to be processed to be turned into something useful like petrol, diesel or plastic.
 

Money

So you can't (legitimately) copy money, and as I know all too well with two sons at University, using money depletes it, and naturally you give a value to money.  It's mostly a real concept being underpinned by Gold stock, and doesn't have to be "processed' to deliver value.

Blood

Blood isn't copyable in the mainstream (although as we speak blood substitutes are being trialled), and use of it depletes it (it has to be re-cleaned & oxygenated after use).  It's not too difficult to ascribe a value to it, and it is a real concept.  Finally it has to be processed by our organs to yield value.

People

People as we know them are not copyable (although biological cloning is possible).  I've said that use of people does not deplete the resource as we can apply our skills & intellect many many times.  However, people do age and limbs and minds fade so perhaps this should be answered as "partly true".  It's not widespread practice to ascribe a monetary value to a person except in a few cases (e.g. professional sportsmen).  People are real and without trying to get too philosophical, they have to do something to yield a value.

Property

Property such as buildings are not copyable.  Sure you can have a plan for a building & use that several times, but its using different bricks, is on a different site and so on.  The Eiffel Tower in China is a fake!  Using a property does slowly erode it, things wear out and need to be maintained.  Property does have value & it's usual practice to give it such.  Property is a real concept, but doesn't have to be processed to generate value.

Materials

So here I'm talking about raw materials.  Again, without a sci-fi replicator they are not copyable, and just like a match the act of using them depletes them.   Most materials have a monetary value easily ascribed to them, for several that's the basis of the commodities market.  They are real not abstract things and pretty much for the most part have to be processed to yield a value.

Intellectual Property (IP)

IP is not legally copyable.  IP thrives on being reused so is not depleted by use.  There is frequently a monetary value allocated to IP and much like a thought or an idea it's mostly an abstract concept.  Finally, IP must be used (processed) to gain real value from it.

Data

So what about data; how does this stack up against the asset characteristics?
Data is copyable; with digital media any number of copies can be taken without the data being degraded.  Using data does not erode it or make it wear out. Sure the relevance of the data may decrease over time but it does not wear out.  Whilst there is much talk about "monetizing" data, this is still not a widespread practice but will no doubt become some in the future.  Data is an abstract concept since its representing something else.  Data needs to be utilised by processes to have value (and conversely processes must have data to operate upon).

 

Conclusion

Having looked at these 8 different assets, and the 5 characteristics is there anything that jumps out at us? 
If we look for assets which have the same values of characteristics as observed in "data" then we're going to be disappointed.  Of the 5 characteristics, 3 of the assets (Money, Property and Materials) have zero common values of characteristics.
2 of assets (Oil and Blood)have one common characteristic value shared with "Data".  Intellectual Property (IP) has two common characteristics, and heading the pack with three common characteristics is People.  It's interesting to note though, that there aren't any of the assets that share 4 let alone 5 of the characteristics as we see in Data.



Thus it's probably reasonable to conclude that: the Data Asset IS different to other business assets that we encounter.

Furthermore, as described in my white paper all of the business depends upon data for its wellbeing.

Unfortunately, we still encounter organisations where the various disciplines of Information Management are not understood (or more frighteningly are knowingly not addressed).  Indeed, Professor Joe Peppard wrote "The very existence of an organisation can be threatened by poor data quality.”  So yes if as we suggest here that it is different, then the management of the data asset requires specific skills and capabilities, the Information professional.

Wise organisations are realising that Information IS a vital asset, it IS worthy of being managed professionally, and yes it IS different.

25 comments:

  1. I have been searching for details about this topic for ages and yours is the best I’ve discovered so far.

    Debiteurenbeheer uitbesteden

    ReplyDelete
    Replies
    1. See http://en.wikipedia.org/wiki/Infonomics for a list of many articles on information value and information asset recognition.

      Delete
  2. If we look back through the ages, I-M (information management Australia) is linked to human existence and being on this earth starting from the stone age to the current age of micro-computers and spaceships. In one way or other man has been constantly facing challenges in storing, processing and analyzing data into useful information.

    ReplyDelete
  3. First of all, glad to join the community here.

    I have found that the best way to get started in the oil and gas industry is to begin by having a look at an oil & gas specific job board and seeing which roles are available. In my opinion, it's important to use a job board as you maximize the number of jobs in one place, and avoid missing any great opportunities...saves you time endlessly scanning the internet for the best jobs! The oil & gas job board at the moment with the most jobs listed is Oil and Gas Jobs so it may be worth giving that a try as a starting point. Once you have a good idea of the type of jobs which are available for your skills, tailor your resume to emphasize the points which would be relevant. Then simply start sending your resume off for the jobs you like the look of (you just need to register/upload your CV once and you can apply for as many jobs as you like).



    I hope this helps!

    ReplyDelete
  4. These simple tips are really simple. I have used all these tips and I am surprised that these all works fine. You are a great advisor. Thanks for sharing.
    Builders North Shore

    ReplyDelete
  5. It's a great article. The Information Management system is very key for the data solutions of small, medium or large businesses.

    ReplyDelete
  6. Online Attendance SystemCheck out sharadtechnologies and know about Online Attendance System, Online School Management System and school mobile app.

    ReplyDelete
  7. Very helpful post for I found it very informative and interesting. Thank you for sharing such a wonderful information. risk governance consulting firm

    ReplyDelete

  8. Order form here World's bitcoin atm card that works to Withdraw funds from blockchain account to local cash through ATM with current market rate. The Card is super speed financial tool to experience easiness for crypto currency investors.

    ReplyDelete
  9. This is best website, where you will find sourcefull information about best electric guitar fender online music shop base for beginners thanks for visitings

    ReplyDelete
  10. I am really enjoying reading your well written articles. It looks like you spend a lot of effort and time on your blog.
    Birthday event organisers in vizag
    Event Organizers in Hyderabad

    ReplyDelete
  11. Gmm Fuel Assist provides the wrong fuel services in UK. Gmm Fuel Assist has the experienced experts will help you in draining the wrong fuel from your vehicle. GMM FUEL ASSIST can help you 24/7, 365 days a year at the cheapest price.

    ReplyDelete
  12. If you are interested in buying a used car in South Hackensack then Check out the Carz4usauto, because they are the car dealers in South Hackensack New Jersey
    .

    ReplyDelete
  13. "Using data does not erode it or make it wear out. Sure the relevance of the data may decrease over time but it does not wear out." Pretty interesting point of view. The value of data may decrease in a single moment. Nevertheless, keeping it safe is still important .

    ReplyDelete
  14. As we know there are many companies which are converting into Big Data Implementation Services with the right direction we can definitely predict the future.

    ReplyDelete
  15. Superbly written article, if only all bloggers offered the same content as you, the internet would be a far better place.. Intune asset management

    ReplyDelete
  16. I am very much pleased with the contents you have mentioned. I wanted to thank you for this great article. Fahim Imam-Sadeque

    ReplyDelete
  17. This comment has been removed by the author.

    ReplyDelete
  18. Asset management really important and different to manage from other managements. One can use Assetteria Asset Management ERP software to manage their assets. Our asset management software is specifically designed to streamline asset tracking, maintenance, and planning, empowering businesses to stay ahead of the competition.

    ReplyDelete