Is Data an Asset or Liability

Is Data an Asset or Liability

While many firms are stating that they leverage their data to gain valuable insights and translate them into profit. But the basic question remains whether data is an asset or a liability. This is the mind-numbing question that haunts all IT managers and must be given ample concentration on what is collected in terms of data and how can it be managed efficiently.

 

Is data an asset or liability

 

There can be two approaches to answer this question, the first being that data could be an asset if used ethically and correctly. But when no actionable insight can be gathered from data, it is a liability in the same lines as an old non-performing loan. Optimum use of data is elemental to the operations of any data driven initiative. The main reason behind this data-drive remains to be to obtain faster and better decision making abilities with more accuracy. Nowadays organizations across the board leverage their data to achieve their goals. Currently sales organizations are the frontrunners who mine their data to get the best results and maximize their revenue from already customers. Also crediting companies use their data to evaluate the risks associated with different individual debtors and then act accordingly when setting rates and fees for their loans that seem to be fair based on this information. In these scenarios the companies use real information to make decisions.

 

Making a Histogram With Basic R Programming Skills – @Dexlabanalytics.

 

But on the other hand many IT personnel who are well-versed in coding think of coding as a liability more than an asset. Why? Because coding is complex with all its diversity and flexibility, the more the options the higher the complications; and more the complexity the more difficult it is to change things and move further. Moreover, codes come accompanied with bugs which waste developer time chasing it. But while this list of “from the trenches” –view shows this dark end of coding showcases the jobs of developers in a bad light. But the upper management always views code in the very starkly contrasting viewpoint. They are ready to pay them in hefty developer salaries and consultant fees. This very dichotomy is also prevalent in the field of data in certain firms these days.

 


 

While on one hand the big data megatrend has articulated to companies that their user data is an invaluable asset. But in contrast to code data is almost free, simple user activity generates an unending amount of data. The sector where data turns into a liability from an asset is where it increases in volume beyond the abilities of management. As per IDC the major Big Data solutions companies in the world will sell their data related solutions to other major companies, worth USD 125 billion in this very year alone. The direct expenses in acquiring these expenses are huge, but the prospect becomes even more expensive when it comes to storing data from private users of unbound amounts. The main loophole lies in the privacy policies of companies juggling these mammoth planetary globes in the fact despite having the right boilerplate for your companies policies, your users have not consented on being tracked. Thus, only chipping away the trust in your business relationship while still costing you a lot of money for maintaining the privacy on your website.

 

How To Visualize Multivariate Relationships in Large Datasets in R Programming: – @Dexlabanalytics.

 

In final thoughts it is safe to say that while data is an asset it can soon turn into a liability if not protected well. You can learn how to protect your data with R language training and preserve your company’s data in a cost-effective way.

 

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May 5, 2016 7:58 am Published by , , , , , , , ,

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