BOSTON--()--With increasing pressures for agile business processes; business decisions that can span tactical, operational or strategic time horizons; and the unprecedented proliferation of data, many organizations are struggling to balance the costs of managing data with the value it brings. To address this problem, Nucleus Research has developed a new framework to measure the time value of data. Nucleus found that the most successful companies are looking beyond traditional data capture and analytical strategies to accelerate the tempo of decision making.
“Our customers have always understood that data plays a critical role in their organization’s ability to succeed. Every business decision is tied to data”
Just as radioactive matter diminishes in volume over time, data also diminishes in value at varying and predictable rates. Nucleus realized that data half lives can be measured based on the tempo of data usage for making decisions using four factors impacting the way companies manage their products’ lifecycles. Product type, decision making, historical data analysis, and information architecture are all involved when determining the cadence of tactical, strategic, or operational decisions in developing valuations from the half life of this data.
The concept of half life, with diminishing value curves based on real world-examples, can provide an effective structure for organizations of all decision tempos to comparatively measure their data’s initial and diminishing value, prioritize their data management investments based on that value, and drive decision-making conversations across IT and management.
The Nucleus study also found that data agility, the flexibility in the information architecture to enable rapid responses for all decision tempos, is a key to optimizing business performance. Companies who do not seek more agile data management alternatives will be trapped in strategic mode and unable to compete tactically or operationally with more nimble competitors.
“Our customers have always understood that data plays a critical role in their organization’s ability to succeed. Every business decision is tied to data,” said Bill Hewitt, CEO of Information Management vendor Kalido. “If you can’t count on your systems to deliver data for decision making at the peak of its value, your opportunity to capitalize diminishes as fast as that data’s value. The Nucleus Research framework defines the linkage between data agility and business decision making beautifully.”
“Making the best decisions quickly is key to success in any industry. However, even the best managers often have to make decisions today based on limited, incorrect, or outdated data. When they do, they incur additional costs, either through tactical investments in data gathering, hesitation, or rework if an initial decision proves wrong. The half life framework enables them to prioritize and understand where to invest in data assets to get maximum value,” said Rebecca Wettemann, VP of Research, at Nucleus Research.
See the full report at NucleusResearch.com
About Nucleus Research
Nucleus Research is a global provider of investigative, case-based technology research and advisory services that provide real-world insight into maximizing technology value. For more information, visit NucleusResearch.com or follow us on Twitter @NucleusResearch.