Welcome to The Chief Data Officer Agenda, a DATAVERSITY monthly webinar focused on the emerging priorities of the Chief Data Officer (CDO). What issues are CDOs facing now, and what should be on their Agenda. The webinar series is moderated by DATAVERSITY CEO and Founder, Tony Shaw, who will be joined each month by guest experts to discuss the requirements and demands on the burgeoning CDO role. This month in the series: The value proposition of enterprise information management is founded on Information being treated as an Asset. Information management professionals concur, but CxOs will say "So what?" In most organizations, they are both right! The conflict starts with one group thinking metaphorically, and the other literally. CDOs know that “Information asset” needs to be more than a metaphor…it has to be actionable. When you’re in charge of the application and value of data, how do you measure that? How do you measure progress? What types of metrics are there and which ones actually work? There is a lot more to measuring the value of information than common ROI. This presentation will give you some starting points for real information asset management and information economics. You’ll learn some of the techniques being used successfully today, and considerations for quantifying the value and progress of information management. There is a means of reconciliation between the metaphors and reality, and this talk will outline a vision for the future, but with practical steps to help you get there.

1. Your Speakers
Tony Shaw
CEO & Founder
DATAVERSITY
@tonyshaw
John Ladley
President
IMCue Solutions
@jladley
#DATAVERSITY

2. • A new webinar series on the first Tuesday of each month (mostly)
• Upcoming Topics:
- Data Governance
- Advanced Analytics
- Roles, Function and Hiring of CDOs
- Risk Management
- Data Business Models
- New Technologies you cannot ignore
…and much more!
#DATAVERSITY

3. • Metrics and Measurement
• John Ladley, President of IMCue
- 30 years experience. Former Meta Group Analyst
- Author of two major books on EIM and Data Governance
- Data Strategy, Information Risk, Organizational Structure, Analytics
- Practical reputation
#DATAVERSITY

4. Metrics for Information
Management
All content copyright 2013 IMCue Solutions LLC
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5. Discussion

Can data or information cost your company
or organization $$$$$?

Is there a broad economic impact of data and
information?

If you answered “yes”, show me how much?
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6. Why worry about information metrics?
Accounting reasons:
•
Information is an asset
•
It has a probability of generating future value
•
It is distinct from financial and material
assets
•
Compliance with Financial Accounting
Standards Board Statement No. 142 —
measuring intangible assets
Practical reasons:
•
Information affects the organization in visible
and most likely measurable ways
•
Information assets are rapidly becoming a
significant business element

7. Objective

Leave with some new views
about measuring tools
to sell and sustain
information asset
management (IAM)
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8. Presenter / co-author


John Ladley
– 35 years EIM experience in various capacities
– jladley@imcue.com
– @jladley
Doug Laney
– Currently heads thought leadership, and
advisory services with Gartner Analytics
– Authored 100+ articles and
research pieces, and
speaks now-and-again.
– Initiated Infonomics as a
formal approach to information
management in the 1990’s
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9. Agenda


Terminology
Measuring Information
–
–
–

Information as an asset
What is an asset
What do you need to measure?
Measuring assets
–
Metric taxonomy
–
What types of metrics are there?



There is a lot more to measuring than common ROI
Value, effectiveness, income statement and balance sheet
Samples
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10. Terminology

Information – ALL enterprise content that can
be used to further the survival and
achievement of business goals
–

Information Asset Management
–

Data = information = content (for this discussion)
The treatment of data, information and content as
an asset in the true, business sense
Enterprise Information Management (EIM)
–
The program that executes IAM
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11. Terminology

Infonomics
–
The economics of information and principles of
information asset management

–
The accounting and measuring aspect of
information asset management


Doug Laney of Gartner Group
John Ladley
Data Governance
–
The oversight of IAM; sets rules of engagement ,
i.e. policy, roles, accountability, responsibilities for
EIM and IAM
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12. What does Information Asset really mean?

Metaphor
–
Example from
Thomas C.
Redman, Ph. D.
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13. Real asset




Goodwill is intangible, appears on the balance sheet,
and can certainly be ‘used up’
Electricity is “used,” but there is always more in
the wire. We buy and
sell kilowatts
Ideas can be copyrighted,
bought and sold
We trade information
every day for something.
Do you have a Twitter™
or Facebook™ account?
You are worth $101.70!
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14. Acquisition
Administration
Application
What to measure - The information
supply chain
Deliver
How is information
providing business
value?
Package
Assess
Store
Deduplicate
Inventory
Secure
Cleanse
Update
Translate
Refresh
Organize Replicate
Delete
Transform
Trade
Analyze
Lend
What are we
doing to add
value to the
information?
Rent
Generate
Trade
Capture
Purchase
Backup
Encrypt
Tag
Index
Transmit
Integrate
Profile
Sell
Report
Alert
Describe
Visualize
Access
Search
Observe
Where are we
getting
information
from?
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15. How to measure – core concept





The “algebra” of R
Where C= Create, U= Update, D = Delete, R =
Read
If Value = Usage , and Usage = R, then Value = R
Therefore Information Value = R
– Then Information Costs = C + U + D
Unless information is used (read) it has no value
other than the sunk cost to produce the data
(transactions)
The IAM business case happens where data is
used – just like “normal” assets
IAM business case: Rbenefit > Ccost + Ucost + Dcost + Rcost
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16. How to look at information value measures

17. Financial performance

Balance sheet
–
Information asset valuations

–
–

$101.70???
Capitalized information-based revenue streams
Shareholder trust
 Reputation (Social media, regular media)
 Compliance risk assess (identifier quality, contingent fines)
 Protect privacy
 Accuracy
 Complete
Income statement
–
–
–
–
–
–
–
Incident costs
IT costs
Project initiation costs
Error* handling costs
Data risk assessment
Insurance premium
“Line of sight” metrics

18. Measuring program effectiveness

Efficiency
–

Risk
–

Delta of risk
Improvement
–
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Measure how well
governance applies its
resources
Amount of improvement /
delta from a “state”
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19. Efficiency









Total cost of IT / Party (Customer, Member, etc.)
End User Labor / Number Users
Total BI/DW Budget / Total Users, and / or Support
Number of interfaces, File feeds
Cost per Interface
DG / Compliance cost divided by Total Income
DG / Compliance cost vs. risk reserves / premiums
Budget / TB (GB)
Benchmarks
–
–
–
–
Number IT tools
Maintenance budgets
License costs
Training costs
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20. Risk

Threat metrics
–
–

Financial Risk
–
–
–

Liquidity
Operational costs
Equity / market value reduction
Data Governance Compliance
–
–

Cost per downtime event
Loss of customer confidence
“Hits” on web-based tools
Access counts on repositories
Legal Compliance
–
–
Potential penalties per subject area
Litigation fees over time
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21. Improvement

Operating Income by Knowledge Worker
–
–

IM Project NPV
–

Operating Income for year divided by number of
Knowledge Workers
Knowledge worker is defined as someone who uses
information to make decisions and take actions that cause
the fulfillment of objectives, reads information
The net present value of the cash flow expected from IM
projects over 5 year planning horizon
IM Portfolio NPV
–
Net present value of the current information assets
expressed as pro-rated portion of free cash flow
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22. Summary



Measurements of
information value and
effectiveness are
viable
There are many many
options to present the
value of an
information program
Saying it cannot be
measured is not an
option
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23. Building Value Through
Information Asset Management™
jladley@imcue.com
314-422-9076
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All content copyright 2013 IMCue Solutions LLC
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