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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 SIGNIFICANT
ADVANTAGE 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• Value of Data can quickly depreciate if is able to be readily outdated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
DIGITAL
DISRUPTION2
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 AN
I.T. ISSUE3
STORING DATA IN A
DATABASE ON A
COMPUTER DOES
NOT MAKE DATA
AN 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

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Big Data @ CeBIT 2015 - Dez Blanchfield ( Day #1 )

  • 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..
  • 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
  • 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