Key take away #3: Data are critical enterprise assets – and it is possible to measure its value
In March we were fortunate to attend this year’s Gartner Data & Analytics Summit in Grapevine TX. As always, the event offered opportunities for networking and learning from the best in the data science industry. Again, Master Data Management (MDM) was one of the hot topics. We are happy to share our key learnings with you in short series.
While data is acknowledged as a critical enterprise asset, its financial value is rarely ever assessed by most organizations. By turning data into actual value for the company leads to improved information management and business outcomes. In order to begin extracting value from the all this excessive data, companies need to start to measure the value of their data. Once companies can determine the value of the data, they can then define the financial benefits made possible by MDM and how to build the business case for MDM initiatives. Gartner actually provides a number of ideas that can be used to quantify the benefits.
- Infonomics is the economic theory of recognizing information as new asset class, and the discipline of measuring, managing and monetizing information just as any other enterprise asset
- The Gartner Business Value Model: A Framework for Measuring Business Performance – The value model is a set of the most common business outcomes resulting from IT investments and ongoing IT services.
- The Gartner Business Risk Model: A Framework for Integrating Risk and Performance – The Risk Model is designed to embed risk-based thinking in business decision-making to support the achievement of desired business outcomes, IT-to-business alignment, initiative prioritization and communication of IT’s value contribution to the business.
All three approaches have their pros and cons. But since they are quite generic, oversized and complicated for most MDM initiatives, it takes some experience and practice to exploit the benefits of these approaches in your daily business. Camelot will help your organization to find the right mix between theoretical approaches and hands-on methods to measure the value of your data as well as leverage that to build a compelling MDM business case.
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