EURIM Value of Information Subgroup

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Valuation of information assets

Loughborough Univ, Wilson, Stenson, Oppenheim, The Valuing of Information Assets in UK Companies, 2000

Premise: If info assets can be valued as assets on a balance sheet, then the acceptance of info as an asset will accelerate and priorities and attitudes will change. They conducted research among literature and 24 organisations to: assess the understanding of info asset valuation in organizations, by information professionals and accountants; identify issues in Information valuation as an asset; identify & evaluate methods of valuing info as an asset; assess the use of FRS10 within companies for valuing information assets.

They conclude that few companies are attempting to value their info assets. Few managers are thinking about exploiting their information assets for financial gain. They are mainly using info for internal management & control. The reasons respondents gave include:

• Information assets are mainly viewed as overheads or a business enabler not an asset, as a support service to users, and so are vulnerable to cuts in hard times.
   

• Reporting on assets is guided by strict rules.
   

• Information assets are already valued culturally and exploited, so no need to seek to value.
   

• Belief that harnessing information makes for a better business and the resource allocation to Info proves this.
   

• An organisations information assets were felt to be unique and therefore impossible to compare to the information assets of other organisations.
   

• Information value varies over time, and too quickly to be valued (this ignores the idea that info has a predictive value, in providing a context in which better decisions can be made).