Strategies for a Data Valuation Assessment

A variety of thought experiments to quantify the value of data and data-related work

Quantifying the value of data can help an organization appropriately prioritize data assets, communicate return on investment to stakeholders, and garner support for data-related work. However, Data Valuation can be very challenging because the process of applying traditional valuation approaches to information assets is not straightforward.

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In fact, there is no standard method for calculating the value of data. International Accounting Standard 38 states that any electronic data cannot be capitalized on an auditable financial statement.

However, undertaking a Data Valuation initiative can provide an organization with a powerful lens to better understand the costs and benefits associated with information assets.

Contents

• Market-based methods
• Economic methods
• Dimensional methods
• Conclusion

Mike Fleckenstein, According to researchers Mike Fleckenstein, Ali Obaidi, and Nektaria Tryfona writing for Harvard Data Science Review, Data Valuation approaches can be grouped into three categories. Market-based methods are focused on the…