Information Age Evolution
Every organization in the world has to identify the best areas that they can use to penetrate the market and to gain a competitive advantage over other companies in the industry. The maintenance of a firm’s data is one of the important factors in developing the scope of the enterprise and identifying the trends in the market. It is, therefore, the duty of the management of any business to ensure that appropriate data storage and protection mechanisms are adopted by the company (Moncini, 2017 p.7). Business and technology perform almost concurrent tasks in ensuring that intangible assets of the firm are maintained and their value preserved. Data is valuable to any developing business as it enables the identification of new sources of information for the management through the provision of valued tools in examining different opportunities.
Data provides an organization with a broad spectrum of the current trends in the market and the graphical representation of the company’s overall development. Additionally, data enables a firm to have a comprehensive view of the market, identify the customer needs and references and any potential risk facing the enterprise (Wilson, Stenson, and Oppenheim, 2017 p. 89). Consequently, many international companies are turning to set up measures that can enable them to have large and efficient methods of preserving their data and data analytics. Undoubtedly, information analytics enables the firm to efficiently optimize its operations, grow and to protect their value. As such, the research will examine the importance of data and information analytics in any company. Moreover, the study will identify and explain different approaches that firms can use in placing valuation for their data assets.
- Valuing Data Assets
The primary objective of infonomics is to provide a better method to process and deliver value from the data created. Many companies have different ways of gathering and processing data including business analysts, data scientists, and risk analysts (Moody and Walsh, 2017 p. 9). To deliver and derive additional value from their data, enterprises need to have a differentiated look and the data acquisition and sharing process to maximize efficiency and to minimize wastage. Data valuation process has three steps that include creation and changing of the data, managing and enriching the information and data consumption.
- Infornomics Approach
Establishment and changing of the available data is solemnly the duty of the top level management of the company including the Chief Executive Officer (CEO) and the director of the ICT department (Ey, 2017p.10). Notably, the organization collects information from different sources including data collecting machines, web apps, and the telematics devices that are rich with the company’s history. While the company may have elaborate and extensive sources of getting the required information, they lack the process, culture, and technology of cultivating the data to have actual value. This deprives the company one of the intangible assets that can give it a competitive advantage in the industry.
Managing and enriching the data obtained takes into account the increase in other vital information that will improve accuracy during valuation. Data consumption, on the other hand, gives the company a better platform in optimizing their interpretation of the information. Additionally, this helps the management in deriving better insights on decision-making of the organization (Gery, Lee, and Ninas, 2017 p. 45). Further, the effects of sound decision formulation of the company can be traced to the firm’s operational model that gives it a higher probability of getting more revenue.
- Definition of infonomics
Leney defined infonomics as the study of assigning economic significance to information through providing a system through which an enterprise may manage, measure and monitor data as a real asset. The theory further proposed six valuation models that companies may use in pricing their business data internally (Finkbeiner and Lazar, 2014 p.23). These models can be categorized into two types including the non-financial model and financial model. The underlying model emphasizes on the intrinsic value of the data. This means that it values information characteristics that encompass the accessibility, accuracy, and completeness of the information. Additionally, Laney concluded that the scarcity and uniqueness of any information that a company has equal to more income to the firm. This model also examines the business value and performance worth of the information.
To efficiently provide a solution to data valuation, Doug Laney created the theory of infonomics to enable companies to quantify the value of information to accompany. The theory provides a framework that a firm may use to evaluate and manage the available data to generate revenue. From the accounting perspective, Laney noted that information could fit perfectly into the intangible assets of the company. The enterprise can, therefore, use the information to exchange value and generate future economic profit in its operations.
Consequently, the financial model assesses the cost, economic and market value of the information. Notably, this method measures how much the company would need to pay to acquire or retrieve the available information (Garifova, 2015 p. 775). The economic value measures how the information contributes to the increase in revenue of the company and its effect on the other income generating project of the firm. Additionally, the information’s market value can be obtained through the selling and rent of corporate data.
According to Cicero Group, (2017 p. 5) most businesses are levering information to improve their performance and rate of innovation. However, while other companies are increasing their investment in big data, most of it is not recorded in the financial statements of the organization.
Other Methods of Valuation
- Non-Financial Methods
- Intrinsic method. These methods of assessment include both the intrinsic and the business value of the information. The intrinsic method does not consider business value but focuses on the quality of the information. This involves the breaking down the data obtained from the level of accuracy, completeness, and accessibility (Higson and Waltho, 2017 p.18). The different classes are after that tallied, and the final score used to value the information. Moreover, one has to consider the scarcity of the information in assessing the data as it gives the company a competitive advantage over other firms.
- Business Value of Information. Consequently, the business value of information measures the characteristics in relation to the operations of the enterprise. The accuracy and completeness of data is essential since an outdated data has no value to the business (Wang, Liu and Wang, 2015 p. 56).
- Performance Value of Information. The theory gives various factors that hinder effective valuation and management of information including lack of measurement, management, technical support, the level of resistance in the organization and accountability in the firm.
- Financial Methods
The method encompasses three different methods including the cost value of information, the economic value and market value of information.
- Cost value of information. It evaluates the cost of acquiring the data or the expenses inquired to retrieve lost data (Cerny, 2015 p. 26).
- Economics value of information. The method measures the economic impact of the information which is the effects of the data towards the income and profitability of the company (Cerny, 2015 p. 26).. These statistics enable the organization to familiarize itself with the trends in the market and how they can model their infrastructure to increase production based on the information available.
- Market Value of Information. The model generates value of the company data through renting and selling of information. However, not all the information available in the company has a market value thus the firm cannot use them to generate income.
- The Super Retail Group
The super retail group is one of the major businesses in Australia listed in the stock exchange market that has taken a critical role in ensuring that information age is fully implemented in that country. The company was established in 1972 and has since coped up with the increased dynamics of the Australian market (Super Retail Group, 2017 p.1). Additionally, the company holds other enterprises including the Avant Fitness, Amart sports , Goldcross cycles and BCF boating which serve more than 5000 customers both in Australia and other continents The company’s integrated solutions have been assimilated in both small and large organizations in the Australian market thus helping their customers to improve their businesses.
The super retail group vast knowledge and experience in the industry and the increase in the number of their customers, has led to the adoption of proper information analysis and storage techniques. The enterprise has also put in place measures that help their clients to effectively manage different types of risks that enable them to achieve business excellence, sustainability, growth, and trust. The business also deals with ecommerce which requires private and confidential maintenance of both the customers and company’s information.
Information Age Principles
The company implements the nine principles of information age drawn by the Data Governance Australia (DGA). These principles are standardized across the Australian market to promote uniformity in governance. The no harm rule states that the information provided by any organization does not cause or subject any individual or company to any harm from the collected or disclosed information.
Further, the rule requires that any agency must act with integrity to ensure that the data they provide is not used for the purpose that might be considered unethical to in business. Notably, The information given by the Super Retail Group aims at ensuring that both the individual or an organization using the data through their ecommerce platform, gets accurate and informed statistics about the available products that will enable customer growth (Super Retail Group 2017 p.1). Furthermore, the firm’s principles that it allows corporates as well as individuals to reference and manage necessary regulatory changes to information. Through this, the company avoids exploiting other organizations that might not be aware or lacks experience in the data provided.
|Principle||DGAs say||Super retail groups take|
|No harm rule||Requires that companies must avoid exploiting their customers or stakeholders during collection, use or disclosure of a customer’s personal information||The company ensures that any information to be used should approved by the individual and authorization granted.|
|Honesty and transparency||The rule states that any business must act with honesty and utmost transparency during collection and disclose of data to other corporates individuals and requires that organizations adopt information collection strategies and disclosure of information as per the privacy notification statement as well as reasonable community expectations and privacy policies.
| The company ensures that the collection and storage procedure is clearly stipulated.
Reasons behind collection of both the primary and secondary private data are disclosed to the users.
|Fairness||Provides that organizations should uphold fairness in collecting usage and disclosure of personal information
|ensures that the data availed to their client as well as their 600 outlets are business-oriented and promote industrial growth.
The company’s mission statement states that the firm is passionate to deliver great choices, value products, and service to our clients about helping other businesses improve their operations.
|Choice||Requires that enterprises should ensure that appropriate mechanisms that provide a variety of choices in collection and utilization of personal information and that the data is easily accessible and understandable to the private users||The enterprise provides a clear procedure of obtaining the policy statement and how to interpret it|
|Accuracy and access||The principle ensures that code organizations implement procedures that ensure that they share accurate and understandable data.||The company ensures that the personal data collected is accurate, complete, and up to date and provides easy procedures that one can use to access them.|
|Safety, security, and De- identification||The code requires that a specified individual should be responsible for storage of confidential information.||Requires that organizations should organize their security as per the industrial standards.
Any personal information should be stored shared and disclosed in an encrypted form to avoid access by third parties
|Stewardship||Requires that the code companies should employ a skilled officer that will be responsible for stewardship compliance.||Organizing of periodical training sessions to their customers and staff to ensure they are up to date with the changes in the industry
|Accountability||Stipulates that code organizations should have a publicly available statement that can be scrutinized by their users.||The company’s policy statement stipulates that whenever required, the firm will stick to the laid guidelines in the website|
|Enforcement|| The organization should be a member of DGA
The company should ensure strict adherence to the set guidelines
|The company’s policy statement has been drawn using different codes including the new Zealand information privacy principles and the Australian privacy principles.|
The Super Retail Group has managed to ensure they adhere to the different principles set by the data governance Australia. Through the introduction of unique products in the market such as training, risk assessment and the standardization of information, the company has enabled its clients to have a variety of services that reduce the complexity of operation. Importantly, developing companies should also adopt information age strategies as they play a significant role in ensuring success and development of the enterprise. Through data analysis, the company can assess their economic growth, risks, and opportunities.
Cerny, D, (2015), Who Gives to Whom?-Generations in the Workplace and Perceptions of Transfer Processes in Business Enterprises. Available at: http://infonomics-society.org/wp-content/uploads/ijibs/published-papers/volume-1-2015/Who-Gives-to-Whom-Generations-in-the-Workplace-and-Perceptions-of-Transfer-Processes-in-Business-Enterprises.pdf
Cicero Group, (2017), Infonomics in practice. Realizing the true value of business data, [online] pp.3-15. Available at: http://www.cicerogroup.com/wp-content/uploads/2015/09/Infonomics-in-Practice-1.pdf [Accessed 19 Sep. 2017].
Ey. (2017), Ey becoming an analytic driven organization. [Online] Available at: http://www.ey.com/Publication/vwLUAssets/EY-global-becoming-an-analytics-driven-organization/$FILE/ey-global-becoming-an-analytics-driven-organization.pdf [Accessed 19 Sep. 2017].
Finkbeiner, C and Lazar, A eds., (2014), Getting to know ourselves and others through the ABCs: A journey toward intercultural understanding. IAP. https://books.google.co.ke/books?hl=en&lr=&id=kAUoDwAAQBAJ&oi=fnd&pg=PP1&dq=+understansing+informationage&ots=12DXSguFYe&sig=yCRW_xJRfzjzIE_paYmxm8KW-Ns&redir_esc=y#v=onepage&q=understansing%20informationage&f=false
Garifova, LF, (2015), Infonomics and the Value of Information in the Digital Economy. Procedia Economics and Finance, 23, pp. 738-743.
Gery, WR, Lee, S, and Ninas, J, (2017), Information Warfare in an Information Age. Joint Force Quarterly.
Higson, C, and Waltho, D, (2017), Valuing Information as an Asset. [online] london.edu. Available at: http://faculty.london.edu/chigson/research/InformationAsset.pdf [Accessed 19 Sep. 2017].
Moody, D and Walsh, P, (2017), Measuring The Value Of Information: An Asset Valuation Approach. Information: A Strategic Business Asset, 1, pp.5-15.
Moncini, J, (2017), How do you measure value of Information. Infonomics, [Online] 1, pp. 2-9.
Smith, P.A. ed., (2014). Impact of Emerging Digital Technologies on Leadership in Global Business. IGI
Superretailgroup.com.au. (2017), Home – Super Retail Group. [Online] Available at: http://www.superretailgroup.com.au/ [Accessed 27 Sep. 2017].
Wang, L, Liu, W, and Wang, Z, (2015), The Implementation of Mini-Enterprise Business Process Management. Available at: http://infonomics-society.ie/wp-content/uploads/ijibs/published-papers/volume-1-2015/The-Implementation-of-Mini-Enterprise-Business-Process-Management.pdf
Wilson, R, Stenson, J, and Oppenheim, C, (2017), Valuation of Information Assets. [Online] lboro.ac.uk. Available at: https://dspace.lboro.ac.uk/dspace-jspui/bitstream/2134/2018/3/2000-2.pdf [Accessed 19 Sep. 2017]