Book Image

The Economics of Data, Analytics, and Digital Transformation

By : Bill Schmarzo
5 (2)
Book Image

The Economics of Data, Analytics, and Digital Transformation

5 (2)
By: Bill Schmarzo

Overview of this book

In today’s digital era, every organization has data, but just possessing enormous amounts of data is not a sufficient market discriminator. The Economics of Data, Analytics, and Digital Transformation aims to provide actionable insights into the real market discriminators, including an organization’s data-fueled analytics products that inspire innovation, deliver insights, help make practical decisions, generate value, and produce mission success for the enterprise. The book begins by first building your mindset to be value-driven and introducing the Big Data Business Model Maturity Index, its maturity index phases, and how to navigate the index. You will explore value engineering, where you will learn how to identify key business initiatives, stakeholders, advanced analytics, data sources, and instrumentation strategies that are essential to data science success. The book will help you accelerate and optimize your company’s operations through AI and machine learning. By the end of the book, you will have the tools and techniques to drive your organization’s digital transformation. Here are a few words from Dr. Kirk Borne, Data Scientist and Executive Advisor at Booz Allen Hamilton, about the book: "Data analytics should first and foremost be about action and value. Consequently, the great value of this book is that it seeks to be actionable. It offers a dynamic progression of purpose-driven ignition points that you can act upon."
Table of Contents (14 chapters)
10
Other Books You May Enjoy
11
Index
Appendix A: My Most Popular Economics of Data, Analytics, and Digital Transformation Infographics

The Economic Value of Data Theorems

One of the eye-opening revelations for me from the University of San Francisco Economic Value of Data research study was the differences in an accounting versus an economic asset valuation approach:

  • Accounting uses a "Value in Exchange" methodology for determining asset valuation based upon the acquisition cost of an asset; that is, the value of an asset is determined by what someone is willing to pay you for that asset or what you paid to acquire that asset.
  • Economics uses a "Value in Use" methodology for determining asset valuation; that is, the value of the asset is determined by how much value you can create from using that asset.

When we change our frame from an accounting to an economics perspective, understanding how to determine the value of one's data and analytic assets almost become self-evident. Once we stop trying to "force fit" data into our balance sheet, then our minds...