The Data Value Formula
April 1, 2021
We live in an age characterized by an information explosion. More data will be created over the next three years alone than over the past 30 years.
This wealth of data opens up new opportunities for data-driven business—utilizing data to inform or enhance processes, decision making, and even business models. However, there is still a long way to go from simply collecting data to using data to create value for the business.
This e-book aims to unravel the complex value creation processes using a simple model—the data value formula. The data value formula explains how data value can be determined and identifies three essential value drivers—data volume, data quality, and data use. Based on the data value formula, companies can identify and design future value-creating steps that transform raw data into business outcomes.