The value of information versus the value of connections

The age of digitalization has given rise to several new buzzwords. Recently, two new buzzwords have been doing the rounds - the ‘value of information' and the ‘value of connections'.

The Value of Information

Tech research and consulting companies around the world keep drumming one thing into the psyche of organizations - that the information generated by your business is a valuable asset that should be carefully managed. Your company's data can unlock entirely new revenue streams, but few organizations truly recognize the impact that their data can have on their business if optimally managed and deployed. Several information assets have abundant potential, beyond the utility for which they were originally produced.

Unlike most of the organization's other assets, information isn't depleted after it's consumed. Hence there is a need for companies to identify and plan alternative ways to leverage existing information assets that are inherently growing their own market value. To reap maximum benefits from value of information:

?   You can use numerous methods to calculate the value of your information assets.

?   You can also take the results of these Information Valuation Models and use them to prioritize and improve your information management discipline.

?   You must also remember that information's ultimate value is only limited by your vision for applying it.

The value of connections

With advancements in IoT services, several devices and organizations are getting densely connected. These connections have changed the nature and role of how these organizations operate. The value of connections lets you analyze the data produced from these connections to draw out business plans and strategies. The value of connections is made up of several key elements:

?   Intrinsic value of information: This information is out of context and is generally gained before using connections.

?   Agent ability: This determines the agent's ability to convert information into action that will lead to a net increase in value.

?   Number of agents on each connection: This acts as a factor or multiplayer.

?   The nature of work: This includes the type of work being performed on the connection. It determines if the multiplier is a positive (value) or a negative (risk). An agent's capability to process information plays a significant role in creating an impact on changes in value. For example:

•  If the value of the data is very high at the beginning (this typically applies to information such as rare customer insights), but the capability of the agent to process that data is low (e.g. creating action items out of these insights), the resulting value of the connection will be low.

Similarly, if the connection is open to integration and other agents use that data to create leverage, the value of the connection increases if the other agents are able to process and exploit that data effectively.

Both these terms are interconnected to each other. Data and analytics leaders should first recognize that before making business plans based on the value of connections. They should evaluate the data and account for how it is being used in those connections. If they do not give importance to the value of information, all their future strategies will be flawed.