Big Data presentation from CeBIT 2015 ( Sydney ).

1. Putting Data On Your
Balance Sheet
“..treat data as a perishable commodity..”

2. 1 The Burning Platform
2 Digital Disruption
3 Data Is Not An I.T. Issue
CONTENTS..

3. THE BURNING
PLATFORM1

4. BUSINESSES THAT
LEARN TO VALUE DATA
GAIN SIGNIFICANT
ADVANTAGE OVER
THEIR COMPETITORS..

5. • 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

6. • 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

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• Value of Data can quickly depreciate if is able to be readily outdated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

8. DIGITAL
DISRUPTION2

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

10. • 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

11. • 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

12. DATA IS NOT AN
I.T. ISSUE3

13. STORING DATA IN A
DATABASE ON A
COMPUTER DOES
NOT MAKE DATA
AN I.T. ISSUE

14. • 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

15. • 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

16. THANK YOU.
Dez Blanchfield
@dez_blanchfield
dez@blanchfield.com.au
+61 414 464 356