G00277972WhyandHowtoMeasuretheValueofYourInformationAssetsPublished:4August2015Analyst(s):DouglasLaneyInformationisabusinessassettobemanaged,deployedandvalued.Chiefdataofficers,chiefanalyticsofficers,CIOs,chiefmarketingofficersandCFOsshoulduseGartner'sinformationvaluationmethodstomeasureinformationusefulnessandmonetaryvalue.KeyChallenges■Mostexecutivesreadilyadmitthattheirorganizationmismanagesitsinformationassets,particularlycomparedtohowtraditionalassetsaremanaged.Thisleadstomissedbusinessopportunitiesandundueexpense.■Currently,informationisnotrecognizedbytheaccountingprofessionasabalancesheetasset,whichmeansfeworganizationshaveatruesenseofthevalueinformationgenerates—orcouldgenerateifoptimallymanagedanddeployed.■ResearchfromGartnerandseveralacademicresearcherssuggeststhatinformation-centriccompaniestendtooutperformtheirpeersandthatfinancialmarketstendtofavorthem,butbusinessleadershavenoapproachtomeasuringthishiddenvalue.■MostITleadersstruggletodemonstratetheeconomicbenefitsofkeyinformationmanagement-relatedinitiatives,suchasmasterdataandmetadatamanagement,dataquality,informationgovernance,informationarchitecture,informationinfrastructureupgradesandevenbusinessintelligenceoranalytics.Recommendations■CxOsandcorporateboardsshouldrequirethatinformationisvaluedbytheirorganizationsasanasset(andnotjusttalkedaboutasone).■CDOsandCAOswiththeguidanceofCFOsshouldestablishastandardmethodologyformeasuringtheactualandpotentialeconomicvalueofkeyinformationassetstotheirorganizations.AdoptoneormoreofGartner'ssuggestedinformationvaluationmodelsandperformthesemeasurementsperiodically.■ITandbusinessleadersshouldusetheirinformationvaluationsatleasttohelpprioritizeandbudgetITandbusinessinitiatives,improveinformationmanagementcultureanddiscipline,andtomakeinformedinformationstrategy,lifecycleandotherdecisions.TableofContentsStrategicPlanningAssumptions.............................................................................................................3Introduction............................................................................................................................................3Analysis..................................................................................................................................................5AdoptInformationAssetValuationMethodstoImproveInformationManagementandBusinessPerformance.....................................................................................................................................5ApplyFundamentalInformationValuationModelstoPrioritizeandImproveInformationManagementDiscipline..........................................................................................................................................6IntrinsicValueofInformation(IVI).................................................................................................7BusinessValueofInformation(BVI).............................................................................................8PerformanceValueofInformation(PVI).....................................................................................10ApplyFinancialInformationValuationModelstoHastenTheirImprovedEconomicBenefit.............12CostValueofInformation(CVI)..................................................................................................13MarketValueofInformation(MVI)..............................................................................................14EconomicValueofInformation(EVI)..........................................................................................16GartnerRecommendedReading..........................................................................................................19ListofTablesTable1.SampleCalculation—IntrinsicValueofInformation...................................................................8Table2.SampleCalculation—BusinessValueofInformation................................................................9Table3.SampleCalculation—PerformanceValueofInformation.........................................................12Table4.SampleCalculation—CostValueofInformation.....................................................................14Table5.SampleCalculation—MarketValueofInformation..................................................................15Table6.SampleCalculation—EconomicValueofInformation.............................................................18ListofFiguresFigure1.SelectinganInformationValuationMethod...............................................................................6Page2of22Gartner,Inc.|G00277972StrategicPlanningAssumptions■Through2015,morethan90%ofbusinessleaderswillviewcontentinformationasastrategicasset,yetfewerthan10%willquantifyitseconomicvalue.■By2016,30%ofbusinesseswillhavebegundirectlyorindirectlymonetizingtheirinformationassetsviabarteringorsellingthemoutright.■By2017,80%ofchiefdataofficerswillstrivetomaximizethevalueofinformationwhiletheycontinueworkingtominimizeitsrisks.■Through2018,mo