Big Data Valuation

Abstract

Big data consist of the computerized collection of vast amounts of data, processed with algorithms in sequential software, to be classified and stored to feed interoperable databases and decision-making processes. Data are an increasingly worthy asset, and they reduce information asymmetries, softening conflicts of interest, and mitigating risk (as far as they reduce the difference between continuously updated expected outcomes and reality). The impact on product and process innovation, know-how, patentable inventions, and digital marketing intangibles (trademarks, mobile apps, web domains, etc.) represents a sharp discontinuity in business models, allowing for scalable extra-returns. The economic potential is still mostly unexplored, in terms of improving business planning accuracy.