Return on Data Asset (RODA)
Balaji Sethuraman
Vice President, R&D | Software, Data, AI & Virtualization| Semiconductor Procurement | Quantum Tech
Are we leveraging our assets to create a sustainable competitive advantage? Many organisations would answer in the affirmative & measure that with return on assets (ROA). What about Data? Most would answer 'No'.
The return on data asset is an unrecognized asset on the balance sheet & could offer a superior competitive position. In today's data-driven world, 'data asset' can potentially provide a very differentiating competitive advantage based on the intelligence and insights it offers. 'Return on data assets' measures the ability of an organization to generate revenues from its data inventory.
?Should data asset be treated as an intangible asset like intellectual property in your balance sheet? Are there any special treatments required in revenue recognition? Are there tax implications with respect to syndication or SaaS models?
Unlike most corporate assets, data is constantly evolving, and it may be both appreciating and depreciating simultaneously. Leadership should recognize such fluidity of data across the enterprise.
Through data monetization your business can start treating data as an asset and gain the benefits from maximizing its value. Companies usually start monetizing data by reducing operating costs & improving productivity of internal operations. The three business models (shown in the figure) - data as a service, insight as a service & analytics-enabled platform as a service - are external pathways to data monetization.
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?An effective data monetization strategy is not the sum of a series of data and analytics driven initiatives designed to enhance revenues or reduce risks. Such a strategy recognizes data as an evolving asset living and growing within a living enterprise and NOT as a static asset that depreciates in value.
What gets measured, gets done & gets improved. Start measuring your Returns on Data Asset or RODA ??
References:
Build sustainable digital solutions I GCC leader I IT strategy I Passion to learn and develop people I Ex Mercedes-Benz R&D India
2 年Very insightful Balaji. Thank you for sharing this. Data is an evolving asset - its value is time bound and needs to be monetised in the right way at the right time
Strategy | Transformation | Architecture | Platforms | Engineering | Operational Excellence in Data & Analytics
2 年Well said ??
Product Owner Plug and Charge system design
2 年Data is the new oil, an immensely untapped valuable asset??