Best Practice Report

Determine Your Data’s Worth: Data Plus Use Equals Value

Intermediate Level: Strategy Practices For Insights-Driven Businesses

August 2nd, 2021
With contributors:
Jeremy Vale , Gene Leganza

Summary

As the data economy heats up, the fear of being left behind leaves company execs in a cold sweat. Board members ask about data commercialization strategies, and the question that’s top of mind for most is “What’s my data worth?” Many have struggled with this question for years. The answer has been elusive in part because people have been looking in the wrong place. There is no inherent value in data — it’s worthless unless someone does something with it. Theoretical models of data’s value are themselves worthless. Only when data is applied to a specific use case can tech execs determine its value: Data plus use equals value. The revenue generated, or costs saved by using the data determine its value.

This report will outline how technology executives can price data products based on the value derived from the data’s use.

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