Information – An Asset

7 Mar

In my previous blog posts I spoke about the characteristics of good information which are according to Curtis & Cobham as follows:

  • Accurate
  • Timely
  • Relevant
  • Just Sufficient
  • Worth its cost

Within my previous posts I provided a number of examples which show how information can create value for an organisation. To further enforce this point I wish to make this post which should be considered by the reader to be supplementary to my previous post on information and the necessity that it should be worth its cost.

According to Peter Drucker information is an important asset “from being organised around the flow of things and the flow of money, the economy is being organised around the flow of information” (Moody & Walsh, 1999). This extract from one of the most influential authors in management is equally applicable to a business organisation and how information should be considered a valuable asset from an business managers viewpoint.  According to Moody & Walsh the requirements for using information effectively are:

  • knowing it exists
  • knowing where it is located
  • having access to it
  • knowing how to use it

Furthermore Moody & Walsh describe information as being an asset which they apply to the definition of an asset as provided by Godfrey et al, 1997; Henderson and Peirson, 1998 who provide that an asset:

  • Should provide service potential or future economic benefits
  • Is controlled by the organisation
  • Is the result of past transactions

According to Moody & Walsh “Information satisfies the definition of an asset much better than employees or customers, which are also commonly referred to in the literature as assets”.

References

Curtis & Cobham, 2001. Business Information Systems; Analysis, Design and Practice: Fourth Edition.

Moody & Walsh, 1999, Measuring The Value Of Information: An Asset Valuation Approach.

Link for further reading:

If you would like to read more about measuring the value of information and also the “laws” of information I recommend that you read the following paper which was presented at the European Conference on Information Systems, it is available at:

http://wwwinfo.deis.unical.it/~zumpano/20042005/PSI/lezione2/ValueOfInformation.pdf

5 Responses to “Information – An Asset”

  1. sad111408478 March 7, 2013 at 9:51 pm #

    Absolutely outstanding series of blogs so far..I have found them simply enthralling from beginning to end:)

  2. sad112540853 March 8, 2013 at 2:52 am #

    Brilliant blog😀

  3. sad111462698 March 8, 2013 at 10:39 am #

    Felt i learned something today well done..

  4. sad111708665 March 8, 2013 at 7:13 pm #

    Information certainly is an asset….really like your details and well presented blog…thank u! I’ve learned something from your work

    • sad111562473 March 8, 2013 at 7:34 pm #

      Thanks, I’m glad that you found it interesting and that you learned something😉

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