Putting Data On Your

Balance Sheet

“..treat data as a perishable commodity..”

1 The Burning Platform

2 Digital Disruption

3 Data Is Not An I.T. Issue

CONTENTS..

THE BURNING PLATFORM1

BUSINESSES THAT LEARN TO VALUE DATA GAIN SIGNIFICANTADVANTAGE OVER THEIR COMPETITORS..

• CIOs get it, but other board members may not understand it yet

• Big Data is rarely viewed as being part of a CEOs agenda

• Value of Big Data won’t be understood by CEOs until it’s monetized

• Big Data is often misunderstood by CFOs as a risk or cost

• Monetize Data by putting it on the balance sheet as an Asset

• Why? Because the value of Big Data is rarely expressed as a Asset

• Value Big Data as an Asset and treat it as a perishable commodity

Put a value on Big Data to get CxOs on board

• We’re all familiar with Physical Assets & Cash

• We’ve learned to manage Human Capital

• We’re catching up with Intellectual Property

• Most of us have a handle on Customer Data

• Databases & Log-files are even on the radar now

• But too few businesses value Data as an Asset !!

• Yet we know information is valuable, and information is Data !!

Data is often allowed to be a Lazy Asset

• ROI estimations of the value in Big Data can be highly uncertain

• Distinguishing cost of gathering & managing Data from cost of doing

business is difficult

• Data does not have a physical presence & can have an infinite life

• Value of Data can quickly depreciate if is able to be readily outdated

• Some Data naturally depreciates in business value over time

• Other Data gains value by being put to unforeseen commercial use

Data is a difficult Asset to classify & value

DIGITALDISRUPTION2

COMPANIES WITH ALMOST NO PHYSICAL ASSETS HAVE GAINED HIGH MARKET VALUE IN RECORD TIME WITH BIG DATA ASSETS

• Worlds largest taxi company owns no taxis ( Uber )

• Largest accommodation provider owns no real estate ( Airbnb )

• Largest phone messaging company owns no phones ( WeChat )

• Worlds most valuable retailer has no inventory ( Alibaba )

• Most popular media owner creates no content ( Facebook )

• Fastest growing banks have no actual money ( SocietyOne )

• Worlds largest movie house owns no cinemas ( NetFlix )

The Digital Disruption Has Already Happened

• Data, in particular Big Data is now one of the most important

assets businesses need to understand & learn to leverage

• A recent survey of 760 information managers found that 50% have

no idea how to prepare to leverage or value big data

• 20% of those information managers surveyed admitted they

weren’t even going to try

Data Driven Businesses Value Data Assets

DATA IS NOT ANI.T. ISSUE3

STORING DATA IN A DATABASE ON A COMPUTER DOESNOT MAKE DATAAN I.T. ISSUE

• CFO’s who put Data on the Balance Sheet monitor it

• Monitoring Data means placing KPI’s on it

• CxO’s now need to come to grips with the 3 x V’s

• Volume, Velocity and Variety

• New CxO roles are entering the board room because of Data

• Chief Data Officer ( CDO )

• Chief Marketing Officer ( CMO )

Managing Data As Business Asset

• Place value on Data immediately where it is generated

• Data should be valued right down to the individual record

• Data Value should be measured in real time where possible

• Once you quantify & value Data it becomes an Asset

• Once Data is an Asset it belongs on your Balance Sheet

• Appearance on a Balance Sheet legitimizes your Big Data

• Every part of your business should have a Big Data strategy

Making Data A Business Asset Issue

THANK YOU.Dez Blanchfield

@dez_blanchfield

dez@blanchfield.com.au

+61 414 464 356