Infonomics is the application of economic importance to information, it is the art of managing data in an organization and monetarizing its value as any other real assets the financial, tangible and intangible, human capital and physical assets. Businesses can account the information to maximize its value as it possesses equal value to the real assets (Gartner IT Glossary, 2017). The understanding that assets are any properties owned by an individual or business that can be turned into cash makes it easy to relate the importance of putting a value on information. It will enable any business to be converted into cash or cash equivalents that would be of use to the business. Infonomics terms any information within an organization as an asset which has exchange value and can benefit the organization tremendously if monetarized (Gartner Inc, 2017).
Information as an Asset
Businesses keep records of their various physical, financial and real assets to be able to come up with strategies and make major decisions affecting the organization. Infonomics put emphasis on the management of information so it can also be used by the chief executive officers and the financial officers in making vital decisions regarding operations within the business (Laney, 2017). Perceiving information as any other traditional asset allows for identification of value attached to the data and its exploration reflects positively of any company’s financial status. Infonomics provide a way for the organization to quantify the actual and potential value. In as much as information is considered an asset as per Infonomics, it has unique attributes as opposed to other assets within the organization.
Data valuation. The measurement of information as an asset and identification of its value is essential in enhancing the performance of any business. In order to treat information as an asset, it has to move along a value chain from the creation of data, active use of the information, merging of information management and other aspects in the business, and the final stage of adapting the information to provide new ideas for the organization (Change factory, 2017). This evaluation is not only difficult, it poses challenges because Information, unlike real assets, has its own attributes that make quantifying it hard. Identification and consideration of these assets while making the valuation is essential in creating a link between management and improving a business’ performance (Disparte. and Wagner, 2017). One, traditional resources can be depleted while information is expandable and its value increases with use. Secondly, information can be compressed and summarized while other assets are incompressible and have to be used as they are. Transportation of information from one point to another is virtually instant while the moving of one asset. Unlike traditional assets that are exchangeable for value, information is shareable meaning it can be given away for value but still remains within the organization. These attributes lender information a unique kind of asset that requires unique valuation approaches to value data (Glikman and Glady, 2017).
Approaches to data valuation. To assess the value of data as an asset, there are two approaches that can be applied, the financial approach and the non-financial approach (Lawskoski, 2014). The two approaches can be used to place a valuation on data assets. The financial approach includes a number of models that allow the information in an organization to be valued. To begin with, there is the cost-value model that calculated the financial cost of gathering the information. It also deals with assessing the cost of replacing data that have been lost. It is termed as the replacement measurement replica of a traditional balance sheet that is used to assess the liability and assets cost ensuring both maintained a balance.
The second model of the financial approach is the measure of the economic value of information. This model assesses the economic impact a particular information has on a business. It measures how much revenue the information generates for an organization (Laney, 2012). The third and final financial model is the market value model that assess how much revenue can be earned by renting out, selling and bartering of the information. The other approach to valuation of data within an organization is the non-financial approach of data valuation. It comprises of three models that look at data in different perspectives that are not of monetary value.
The first nonfinancial model evaluates the intrinsic value of data other than the business value of data. This model categorizes the information depending on its accuracy, completeness, and availability in order to quantify the quality of data. The final intrinsic value is then reached by ranking and tallying of the three attributes. Laney goes ahead to mention that the intrinsic value of data has higher potential when the competitors do not have access to it. The assessment of the business value of information is the other non-financial model. It evaluates the value of data in relation to the organizational processes. It takes into account the attributes of the data such as the accuracy and directly links it to the timeliness of it. The better the timing of data availability during a particular value, the higher the value of the data. Finally, there is the performance value evaluation model that is the measure of the effect an information has on important performance indicators in an organization (Larrabee and Voss, 2013).
Super Retail Group
Super Retail Group an Australasian retailer company that is listed on the Australian Stock Exchange. The company was started in 1972, listed on the ASX in 2004 and has since grown to be one of the leading retailers with specialties in over 600 stores and an over 2 billion annual turnovers (Ibisworld.com, 2017). The ability of the super retail group to deliver great choices, value, quality goods and services to their customers has been achieved through a continued focus on the introduction of new products, initiatives in sourcing and chain supply, and customer offers with multichannel development. The group has adopted the measuring and management of data within their organization. The group is responsible for Rebel, Avanti Fitness, Sports Super-cheap Auto, Gold-cross Cycles, Boating Camping Fishing (BCF), Rays, Amart, Workout World and Super Retail Commercial. The Group operates within Australia, in China and New Zealand, all striving to provide solutions and engaging experiences to enhance our customers’ leisure time.
Codes of Practice
The Australian government has come up with guidelines that govern data by ensuring the way data is collected, used and managed is ethical (Eyers, 2017). It has increased the confidence and trust of consumers on the information related to organizations by formulating a code of practice. The Australian data governance has created core principles that govern data management practices which include the no-harm rule, transparency and honesty, accountability, stewardship, accuracy and access, fairness, choice, enforcement, and security (Datarepublic.com, 2017). The super retail group takes advantage of the technological advances in e-commerce by selling their products online through valuable websites and it is thus important for them to adhere to the code of practice set by DGA.
The Super retail group is eminent in following the guidelines in managing its data, the information they release to customers, how they collect their feedbacks and maintain the privacy of their consumers. With the growing use of mobile computing in e-commerce, people’s privacy should be assured and thus the no harm rule applies in protecting information of individuals who transact with the super retail group. The group has put in place policies that require them to inform individuals of their intentions to use their personal information prior to using it (Munteanu, 2011). In Infonomics, how the data collected is used should be information given to the individual’s way beforehand in an honest and transparent way. Failure to the provision of this information risks the business a great lose throw court pursuits and lose of customer trust. The SRG policy requires it to reveal the reasons for data collection disclose the primary and secondary reasons for use of personal information.
The group has further formulated policies that whatever data is collected should only be used for legitimate business and the SRG clearly outlines its legitimate reason for collecting data. DGA further stipulates that the individual from which the information is being collected and used should provide it at free will (Munteanu, 2011). The super retail group makes information available and accessible in the most comprehensive way possible. These make it easy for the individuals to access and use the information shared. The organization must reveal accurate information to individuals on their reasons for data collection. The companies are obliged to give correct information to individuals to avoid misleading them.
Principle DGA’s say Super Retail Group’s take
|Fairness||Organizations must only collect personal information from subject individuals for actual and anticipated legitimate business purposes.||The privacy statement by the Super Retail Group clearly informs the actual and anticipated business purpose.|
|Choice||Organizations must ensure that mechanisms, which provide choice for the collection and use of personal information, are easily accessible and understandable to subject individuals||
The policy statement provides a clear way to obtain the policy statement of the organization and the statement is given in an easy to understand format.
|Accuracy & Access||Organizations must take reasonable steps to ensure that any data that they share is accurate and not misleading||Under the Quality of
Personal information the company states to take reasonable steps to ensure that the personal information collected or used is accurate, up to date and complete.
|Stewardship||Organizations must appoint a relevant officer responsible for compliance with this Codes of practice||The company has nominated Group Risk
|Accountability||Organizations must have a clear and publicly||The policy statement of the company indicates|
|Available statement and/or use the DGA Trust Mark to demonstrate commitment to and compliance with this
|Whatever required by the law, avail the statements and adherence mechanism on the website.|
|Enforcement||As a condition of membership organizations must comply with this Code and the Code Guidelines issued and enforced from time to time during the term of the Organization’s membership of the DGA||The entire policy statement has been devised keeping in mind the Australian
Privacy Principles, New
Zealand Information Privacy Principles and any other applicable codes.
The company also indicates their aim to provide sufficient practices, procedure, and system relating to the governing authorities.
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