The Economic Value of Data Calculation
We will end this chapter with the mathematical formula for the Economic Value of Data calculation. If you can't put the formula into math, well, it'll be hard to lay claim to that Nobel Prize in Economics that I so badly desire!
The Economic Value of a Dataset (EvD) equals the sum of the Attributed Financial Value (FV) of a specific Use Case (Use_case_FV) that each dataset provides to that specific Use Case:
where m is the number of use cases, nj is the number of data sets per use case j, and a0 is a bias.
Using Figure 5.5 (repeated below as Figure 5.8 for simplicity), you apply this formula as such:
- The first iteration covers the Vendor Quality use case [Use_case_FV1], where [Use_case_FV1] equals $60M. [Count Data_Set] = 3 since there are 3 data sources (data sources A, B, and C) that support the analytics for [Use_case_FV1]. Each of the 3 data sources is attributed (1 ÷ [Count Data_Set]) of the [Use_case_FV...
