Measuring the Value of Information

8 Mar

When you can measure what you are speaking about and express it in numbers, you know something about it, but when you can not measure it your knowledge is of a meagre and unsatisfactory kind” – Lord Kelvin

 

Information may be the most valuable asset for a business. However, the quantitative measurement of information has alluded the business world for the most part. It requires an ever increasing use of a business’ organisational resources to gather and analyse information, yet it is not recognised on the balance sheet. Length is measured in metres, weight in grams, and capacity in litres. There is no unit of measurement for information.

 

Hardware and sometimes software assets are capitalised while the valuation of info is ignored even though it is a more valuable asset from a business viewpoint. These are merely systems in used to produce and maintain information. Information is the end product of hardware and software. I feel IT strategies should be more geared towards improving and maintaining the value of information (the product) rather than the hardware and software systems (the production equipment). Business strategies are all measured on how they contribute to the main goal of the mission statement, profit. In the same way, IT strategies should be evaluated on how they contribute to the value of information delivered to users. For this to happen, we need some way of measuring the value of information.

One Response to “Measuring the Value of Information”

  1. sad111708665 March 8, 2013 at 11:33 pm #

    Nice blog about how information is so critical within the IS framework🙂 I liked The Lord Kelvin quote also🙂

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