Infonomics - Wikipedia: Principles of Infonomics[edit]
The seven principles of infonomics[3] are as follows:
Information is an asset. The primary principle of infonomics is the recognition of information as an enterprise asset. Although generally accepted accounting principles (GAAP) as yet do not require the reporting of information assets on the balance sheet, infonomics deems that organizations acknowledge that information is more than merely a resource.
Information has both potential and realized value. While it is generally accepted that information has value when used in decision making or to fuel business operations, infonomics posits that information, just as GAAP-recognized assets, has a definitive value even when not in-use. The accounting definition of a balance sheet asset being an item of ‘’probable future economic value’’ applies as well to information. Information's value can also be determined in terms of its realized value and potential value.
Information’s value can be quantified. Similar methods for quantifying the value of accepted intangible assets can and should be applied to valuing information assets. These valuation (finance) methods include as applicable and relevant: market approach, the cost approach, and the income approach. As well, non-economic valuation methods that quantify information’s relative value, business process relevance and data quality-related value have application in helping organizations make strategic information-related IT and business decisions.
Information should be accounted for as an asset. Although information is not yet a recognized balance sheet asset, organizations should consider it one for internal reporting purposes. This includes an applying valuation methods on a scheduled basis and when a given information's value may be impaired, and internally reporting information asset value on a supplemental balance sheet.
Information’s realized value should be maximized. Infonomics valuation exercises typically disclose that information is a vastly underutilized asset and that organizations should consider opportunities to improve their capture and deployment of information in generating top-line and bottom-line benefits. This includes decision-making, business process automation, innovation, and even the packaging and direct marketing the organization’s information assets.
Information’s value should be used for prioritizing and budgeting IT and business initiatives. IT and business related initiatives that leverage or secure information assets should be budgeted against the quantified economic value of the information and the cost to acquire, administer and apply the information. Currently such initiatives tend to proceed without this degree of fiscal diligence.
Information should be managed as an asset. Traditional physical and financial assets have a definitive lifecycle and procedures for their effective handling throughout. Infonomics principles suggest that organizations should apply their own expertise, policies and practices in asset management toward the management of information assets.
The seven principles of infonomics[3] are as follows:
Information is an asset. The primary principle of infonomics is the recognition of information as an enterprise asset. Although generally accepted accounting principles (GAAP) as yet do not require the reporting of information assets on the balance sheet, infonomics deems that organizations acknowledge that information is more than merely a resource.
Information has both potential and realized value. While it is generally accepted that information has value when used in decision making or to fuel business operations, infonomics posits that information, just as GAAP-recognized assets, has a definitive value even when not in-use. The accounting definition of a balance sheet asset being an item of ‘’probable future economic value’’ applies as well to information. Information's value can also be determined in terms of its realized value and potential value.
Information’s value can be quantified. Similar methods for quantifying the value of accepted intangible assets can and should be applied to valuing information assets. These valuation (finance) methods include as applicable and relevant: market approach, the cost approach, and the income approach. As well, non-economic valuation methods that quantify information’s relative value, business process relevance and data quality-related value have application in helping organizations make strategic information-related IT and business decisions.
Information should be accounted for as an asset. Although information is not yet a recognized balance sheet asset, organizations should consider it one for internal reporting purposes. This includes an applying valuation methods on a scheduled basis and when a given information's value may be impaired, and internally reporting information asset value on a supplemental balance sheet.
Information’s realized value should be maximized. Infonomics valuation exercises typically disclose that information is a vastly underutilized asset and that organizations should consider opportunities to improve their capture and deployment of information in generating top-line and bottom-line benefits. This includes decision-making, business process automation, innovation, and even the packaging and direct marketing the organization’s information assets.
Information’s value should be used for prioritizing and budgeting IT and business initiatives. IT and business related initiatives that leverage or secure information assets should be budgeted against the quantified economic value of the information and the cost to acquire, administer and apply the information. Currently such initiatives tend to proceed without this degree of fiscal diligence.
Information should be managed as an asset. Traditional physical and financial assets have a definitive lifecycle and procedures for their effective handling throughout. Infonomics principles suggest that organizations should apply their own expertise, policies and practices in asset management toward the management of information assets.