Dear  Pieter van de Griend

Greetings,

Please see the attached about the information asset value , may be useful for you.

Best Regards 

Hi,

It seems that information asset value can be determined for something that is measurable, such as usage. In the  academic library scene, for instance, it is difficult to measure profit,  because this institution is a non-profit , information- intensive organization, so the information value asset in this organization is by measuring the utility of an information unit, that is, how many times it is used during a fixed time lapse.

The asset value is also related to the criticality of the asset. A nut, bolt or axle in mechanical terms or a process control system can be critical to managing operation of an aeroplane or an industiral process. The asset may not be so expensive in itself, but it protects a device or process where interruption would be very expensive or even fatal.

An example of information assets are patents. They are assets reglemented by law. This law explains also how one can evaluate the value of a patent. This depends on the concrete win realized or estimated by using the patent. This can be generalized also to other forms of information assets. Maybe...

The concept of value is one that is inherently subjective. What is valuable to me may not be to you. Therefore the concept of value is one that is solely mine or it may be a social construction in which we negotiate and agree on what the value of an asset is. 

So for example, book value of an asset is a social construction based on a market valuation which is a socially agreed upon transaction amount recorded according to generally accepted account principles recorded in a balance sheet. 

So to answer your question, if you are trying to find a "one size fits all" method of determining the value of something, you are embarking on a fruitless quest. 

Why not use the asset valuation process used for infrastructure assets? In this methodology the replacement cost is used to value the new data.  This can be derived based on unit rate estimates or on detailed knowledge.  As the asset ages a depreciated replacement cost is used to reflect the loss of service.  To do this typical useful lives are used.  Here the typical useful life of the data type could be calculated based on how long the data is relevant for.  

I agree to the subjectivity of asset valuation. If you are a real-estate agent or cloud hosting provider, then the cost of an asset may be similar to the replacement cost. On the other hand, if the asset is a critical component, for example to oil drilling equipment, then asset valuation will need to also consider the expected downtime and time to repair the asset, if production is being interrupted. An asset may also have some financial value, but no real value for the business, for example an asset that is no longer being used.

The solution would thus be to always define the context in which one wants to value an asset, disregarded whether it is a physical asset, an information asset, or something else. A systems approach on the problem might be appropriate. Within the specific context, or within a system, a value might be defined.

Difficulties lies in high obsolescence of IT Assets  in accordance with Moore's Law . Daniel Moody & Peter Walsh  (1999) argue that utility valuation method is theoretically the best valuation approach in terms of validity.  However, utility valuation method is impractical to apply in practice, because of the cost of applying it and the subjective nature of the results (reliability). There is a dilemma, although Utility Valuation Method maybe still be useful

Thanks to all who contributed in response to my question. Perhaps of interest to know that Douglas B. Laney published his book titled:

Infonomics: How to Monetize, Manage, and Measure Information as an Asset for Competitive Advantage (Sept 2017).

As a response to this question, I dare think.