Capital
Capital is already-produced durable goods and assets, or any non-financial asset that is used in the production of goods or services.
Adam Smith defined Capital as "that part of a man's stock which he expects to afford him revenue." Adam Smith's definition reinforces that the ultimate economic goal of any piece of capital is to "afford (provide) revenue," which should equally apply to the organization's data and analytic assets. Capital is an input into the production function; that is, capital, including data and analytics, can be inputs into the organization's production and value creation processes.
Data Ramifications: While it may be possible to generate revenue through the direct sale of the organization's data, for most organizations, data as capital gets converted into revenue in four ways:
- Driving the on-going optimization of key operational and business use cases (for example, reducing fraud by 3% annually...
