Today, more than 90% of the value of companies in the S&P 500 is driven by digital and intangible assets (including not just data but brands, software code and confidential information). These assets are critical to long term company growth and represent major potential value, yet often when companies are looking at these assets, they are viewed as a cost centre rather than as a revenue generator or value contributor.
Intangible and digital assets hold significant value and many of them sit within the realm of the Chief Information Officer (CIO). But how can CIOs start the conversation with their boards and management teams around looking at data – and other intangible assets – as business assets and potential revenue generators, rather than cost centres. In today’s knowledge-based economy, data is a core business asset. However, when it comes to monetising data, many companies erroneously see data (and other intangible assets) as an IT issue and cost centre and approach the management of it from a technical challenge perspective.
In fact, the monetisation of data and other digital assets are actually asset utilisation issues. Data is like any other asset owned by the business – if you want to successfully convert it into value you need to develop a business case that carefully calculates not just the potential return, but also the costs and risks involved.