Data as an Intrinsic Asset Component in Data Supply Web Model – An Exploration

Abstract

Information has contributed to the growth of many new business models. Organisations are now sitting on a pile of information, trying to make sense of it and extract valuable insights from it. The objective of the current study is to contemplate the necessity of treating information as an asset and discusses the challenges of presenting it on the balance sheet. The present organizational climate demands big data driven decisions without veracity and approximations, making the role of accurate data, more crucial. More accurate the data is, more leverage it would earn, hence accurate data will be of more value when compared to data with lesser accuracy. This article makes a humble attempt to iterate on the need of quantifying the value of data based on their accuracy. The article is an opinion paper that weaves around the philosophies of accounting, data science and tries to mimic the value web model from management science, for understanding the methods of quantifying the data. A thorough review of the literature and existing regulatory framework is done to derive the insights for the article. The paper helps Chief Information Officers, Chief Financial Officers and Chief Technical Officers to understand and value the information used in the business however does not restrict itself to the strategic information systems vested with these apex authorities. The paper believes that the value for data is generated from the moment it enters into the information systems or the manual records maintained and gets enriched with each and every additional transaction. Once a value is attached, the policies to manage and govern the information would automatically fall in place.