The Economic Value of Data Theorems
One of the eye-opening revelations for me from the University of San Francisco Economic Value of Data research study was the differences in an accounting versus an economic asset valuation approach:
- Accounting uses a "Value in Exchange" methodology for determining asset valuation based upon the acquisition cost of an asset; that is, the value of an asset is determined by what someone is willing to pay you for that asset or what you paid to acquire that asset.
- Economics uses a "Value in Use" methodology for determining asset valuation; that is, the value of the asset is determined by how much value you can create from using that asset.
When we change our frame from an accounting to an economics perspective, understanding how to determine the value of one's data and analytic assets almost become self-evident. Once we stop trying to "force fit" data into our balance sheet, then our minds...
