tech mahindra cxo forum - futurescapes xpress 2015

© 2013, 2014, 2015 dez blanchfield - [email protected] - +61 414 464 356 - @dez_blanchfield

Putting Data On Your Balance Sheet

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


BUSINESSES THATLEARN TO VALUE DATA GAIN SIGNIFICANTADVANTAGE OVERTHEIR COMPETITORS..


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

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

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

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

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

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

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

Why put your Data on the Balance Sheet


• We’re all familiar with Physical Assets & Cash

• We’ve begrudgingly learned to manage Human Capital

• We’re still catching up with Intellectual Property

• Most of us of us have a handle on Customer Records

• Databases, Log-files, and Metadata are now on the radar

• But too few businesses value their Data as an Asset

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

Data is too often allowed to be a Lazy Asset


• ROI estimations on the value in Data is not a trivial exercise

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

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• Value of Data can quickly depreciate if is able to be readily outdated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


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


• Worlds largest taxi company owns no taxis ( Uber )

• Largest accommodation provider owns no real estate ( Airbnb )

• Largest phone company owns no telco infra ( 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 )

• Largest software vendors don’t write the apps ( Apple & Google)

Digital Disruption Happened Through Data Value


• Place value on Data immediately where it’s acquired or 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 Data value

• Every part of your business should have a Data strategy

Making Data A Business Asset Issue


THANK YOU.Dez Blanchfield@dez_blanchfield

+61 414 464 356

[email protected]

tech mahindra cxo forum - futurescapes xpress 2015

Data & Analytics