Problem Deep-Dive
Money down the drain
There's a bottleneck at the heart of modern commerce
Data is not the new oil. It is the new water–a necessity–the fuel of modern business operations. And there is too much–another tsunami every day. Data management is hugely painful for every data-driven business. The tsunamis arrive because there is an intractable data-handling bottleneck. Three interlocking problems hint at the presence of the bottleneck.
There is a need for:
- Rapid Valuation and Conversion of Data Assets to Current Assets;
- Rapid Accurate Costing to calculate Profitability; and
- Rapid Continuous Improvement of Data Quality.
All three need Data to have current cash value. It doesn’t. The bottleneck is that Data is an Intangible Asset. It is not easy to monetize. This makes Data hard to value, cost and manage. Costing is a "black hole" and Profit & Loss calculations is a guess.
The need for rapid data monetisation
We need business metrics to use statistical improvement methods, such as the 80/20 Rule (Pareto analysis) to improve the quality. But this means that we must have cash value, to create "x" and "y" variables.
This is not possible because Intangible Assets have $0.00 daily value. Data monetization can take weeks and months of work by teams of financial specialists and analysts. Teams use traditional methods; workarounds that were created to get around the inability to rapidly monetize data.