Information value is linked to how it enables business goals

Q: What is Information Value Management?

Information Value Management (IVM) is a methodology, developed by Datum (now part of Precisely) that links data and data management to business outcomes and value. It is a process that enables organizations to understand the value of their data and use it to drive business outcomes. IVM is based on the concept that “if data is a strategic corporate asset then information management needs to be regarded as strategic also. That in turn means that it needs to be business-driven and motivated and led by business priorities and goals. It is important to have a reusable framework for governing your data that can be redeployed across multiple business initiatives on an ongoing basis.”

Q: IVM involves several key steps, including:

Align business and data management goals: Identifying key business goals, metrics, and objectives and aligning these to data terms and assets. This step involves business stakeholders who identify the business goals and objectives and align them with data terms and assets. Automating key data management processes and involving the right people to add context to each asset, with a full history of the decision-making process. This step involves automating key data management processes and involving the right people to add context to each asset. Calculating data value by examining an outcome that was achieved through the use of data, comparing it to how the outcome would have been different without the use of data, and considering the cost to achieve that outcome. This step involves calculating data value by examining the outcome achieved through the use of data and comparing it to how the outcome would have been different without the use of data. Alternatively, one can leverage models like Garter's Infonomics, which defines six formal information valuation models that can be used to value individual attributes.

Q: Gartner's Information Valuation models include:

Intrinsic Value of Information (IVI) - related to the quality of the information Business Value of Information (BVI) - related to the quality and the timeliness of the information for business processes Performance Value of Information (PVI) - How does having and using the information affect key business drivers? Cost Value of Information (CVI) - What would it cost us if we lost this data? Market Value of Information (MVI) - Is there value in selling this data? Economic Value of Information (EVI) - How does this data contribute to our bottom line?

What is IVM?

IVM is a methodology, developed by Datum (now part of Precisely) that links data and data management to business outcomes and value. It is a process that enables organizations to understand the value of their data and use it to drive business outcomes.

IVM is based on the concept that “if data is a strategic corporate asset then information management needs to be regarded as strategic also. That in turn means that it needs to be business-driven and motivated and led by business priorities and goals. It is important to have a reusable framework for governing your data that can be redeployed across multiple business initiatives on an ongoing basis.”

IVM involves several key steps, including:

Align business and data management goals: Identifying key business goals, metrics, and objectives and aligning these to data terms and assets. This step involves stakeholders identifying the business goals and objectives and aligning them with data terms and assets.
Automating key data management processes and involving the right people to add context to each asset, with a full history of the decision-making process. This step involves automating key data management processes and involving the right people to add context to each asset.
Calculating data value by examining an outcome that was achieved through the use of data, comparing it to how the outcome would have been different without the use of data, and considering the cost to achieve that outcome. This step involves calculating the value of data by examining the outcome achieved through the use of data and comparing it to how the outcome would have been different without the use of data. Alternatively, one can leverage models like Garter's Infonomics, which defines six formal information valuation models that can be used to value individual attributes.

Gartner's Information Valuation models:

Intrinsic Value of Information (IVI)

related to the quality of the information

Business Value of Information (BVI)

related to the quality and the timeliness of the information for business processes

Performance Value of Information (PVI)

How does having and using the information affect key business drivers?

Cost Value of Information (CVI)

What would it cost us if we lost this data?

Market Value of Information (MVI)

Is there value in selling this data?

Economic Value of Information (EVI)

How does this data contribute to our bottom line?

How do we make IVM practical?

Understanding the value of data is only part of the problem. Institutions practising IVM must link data management activities, and data, to business goals, objectives and outcomes to track value and value-adding activities.

Precisely's Data360 Govern platform enables IVM by automating key data management processes and involving the right people to add context to each asset. It also provides a full history of decision-making processes, and comprehensive dashboards to track outcomes.