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#datapopupseattle
What is Your Data Worth?
Chloe Mawer
Data Scientist, SVDS
SVDataScience
#datapopupseattle
UNSTRUCTURED
Data Science POP-UP in Seattle
www.dominodatalab.com
D
Produced by Domino Data Lab
Domino’s enterprise data science platform is used
by leading analytical organizations to increase
productivity, enable collaboration, and publish
models into production faster.
What is your data worth?
UNSTRUCTURED Data Pop-Up Seattle
October 7, 2015
Chloe Mawer |@chloemawer
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
3 © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
How much is my data worth?
4 © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
How much is my data worth?
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
Information goods
Information does not adhere to three main features
of the traditional market system:
1.  Excludability
2.  Rivalry
3.  Transparency
DeLong and Froomkin, 2000; Varian, 1995;
Varian, 1999;Dou and Wu, 2015
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
Intangible asset valuation
Intangible assets: non-physical assets with
commercial value but not in a form eligible for
traditional IP law protection.
Three main models:
1.  Cost-based
2.  Market-based
3.  Income-based
Matsuura, 2004
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
Added complexity of data
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
How much is my data worth to others?
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
Other considerations
•  Completing the chain
•  First copy costs
•  Liability
•  Substitutes
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
The data market (or lack thereof)
•  Data marketplaces have been bought by
aggregators.
•  Data exchanges occur through aggregators or 1:1
deals.
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
How much is 3rd party data worth to me?
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
Buying data
•  Completing the chain
•  First copy costs
•  Substitutes
•  Liability
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
External data’s value to you
•  A/B testing
•  Value of information (VOI) framework
VOI = Expected value of decision using data
- Expected value of decision without data
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
What is my data worth within the organization?
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
Assessing current data value
•  Mutual information (MI)
MI = Information entropy without added data
- Information entropy with added data
•  Take inventory
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
Increasing data’s value in your
organization
•  Accessibility
•  Integration
•  Ease of use
•  Coverage
•  Completeness
•  Accuracy
•  Latency
Choose metrics that are easy to measure and suited
to your business.
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
Data breach or loss
•  How much PII do you have?
•  What trust could you lose from your customers?
•  Average $154 per record
•  $363 healthcare
•  $300 education
•  $165 retail
•  $121 transportation
•  $68 public sector 2015 Ponemon
Institute Cost of Data
Breach Study
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
•  Unique properties of data make
it difficult to value.
•  Buying and selling is taking
place 1:1 or via aggregators.
•  Method for valuing data for
internal use depends on
intention.
CONCLUDING
THOUGHTS
#datapopupseattle
@datapopup
#datapopupseattle
#datapopupseattle
Thank You To Our Sponsors
© 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED.
@SVDataScience
THANK YOU

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What is Your Data Worth? - Data Science Pop-up Seattle

  • 1. #datapopupseattle What is Your Data Worth? Chloe Mawer Data Scientist, SVDS SVDataScience
  • 2. #datapopupseattle UNSTRUCTURED Data Science POP-UP in Seattle www.dominodatalab.com D Produced by Domino Data Lab Domino’s enterprise data science platform is used by leading analytical organizations to increase productivity, enable collaboration, and publish models into production faster.
  • 3. What is your data worth? UNSTRUCTURED Data Pop-Up Seattle October 7, 2015 Chloe Mawer |@chloemawer
  • 4. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience
  • 5. 3 © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience How much is my data worth?
  • 6. 4 © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience How much is my data worth?
  • 7. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience Information goods Information does not adhere to three main features of the traditional market system: 1.  Excludability 2.  Rivalry 3.  Transparency DeLong and Froomkin, 2000; Varian, 1995; Varian, 1999;Dou and Wu, 2015
  • 8. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience Intangible asset valuation Intangible assets: non-physical assets with commercial value but not in a form eligible for traditional IP law protection. Three main models: 1.  Cost-based 2.  Market-based 3.  Income-based Matsuura, 2004
  • 9. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience Added complexity of data
  • 10. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience How much is my data worth to others?
  • 11. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience Other considerations •  Completing the chain •  First copy costs •  Liability •  Substitutes
  • 12. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience The data market (or lack thereof) •  Data marketplaces have been bought by aggregators. •  Data exchanges occur through aggregators or 1:1 deals.
  • 13. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience How much is 3rd party data worth to me?
  • 14. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience Buying data •  Completing the chain •  First copy costs •  Substitutes •  Liability
  • 15. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience External data’s value to you •  A/B testing •  Value of information (VOI) framework VOI = Expected value of decision using data - Expected value of decision without data
  • 16. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience What is my data worth within the organization?
  • 17. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience Assessing current data value •  Mutual information (MI) MI = Information entropy without added data - Information entropy with added data •  Take inventory
  • 18. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience Increasing data’s value in your organization •  Accessibility •  Integration •  Ease of use •  Coverage •  Completeness •  Accuracy •  Latency Choose metrics that are easy to measure and suited to your business.
  • 19. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience Data breach or loss •  How much PII do you have? •  What trust could you lose from your customers? •  Average $154 per record •  $363 healthcare •  $300 education •  $165 retail •  $121 transportation •  $68 public sector 2015 Ponemon Institute Cost of Data Breach Study
  • 20. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience •  Unique properties of data make it difficult to value. •  Buying and selling is taking place 1:1 or via aggregators. •  Method for valuing data for internal use depends on intention. CONCLUDING THOUGHTS
  • 23. © 2015 SILICON VALLEY DATA SCIENCE LLC. ALL RIGHTS RESERVED. @SVDataScience THANK YOU