How Will Future Trends In Information Management Affect My Business?
The Balance Between Extracting Value From Your Information And Managing Your Risk
Information Economics: The Intersection Of Value , Risk And Cost
Information Economics is managing and leveraging information created and received by an
organization with a view to the bottom line. Every business needs an enterprise-wide information
strategy that aims to reduce risk, ensure compliance, lower costs, and now with the emergence of
big data, prepare for analytics. Information Economics provides a comprehensive and collaborative
strategy to help organizations optimize information value and limit risk at every stage from the initial
creation of records and information across their active life, right through to secure destruction.
Gaining A Competitive Advantage
In the previous chapters of this eBook, we looked at minimizing the cost of records management, extracting maximum value from information, avoiding disasters and mitigating risks and developing information policies that are right for your people and processes.
The top 15% of global companies surveyed genererated more than $10M
Data can be used for more than just traditional legal, compliance and regulatory purposes; there are huge gains businesses can make by extracting value from data. The top 15% of 1,011 global companies surveyed by IDC for the 2015 whitepaper, Mining for Insight: Rediscovering the Data Archive, generated more than USD 10 million in added revenue as a direct result of mining their data archive and extracting value from it in the past year.
In this final chapter we consider the barriers to achieving a return on information and the best practices of the Information Elite: those who are getting their information management right and gaining a competitive advantage.
The Information Value Index
As organizations turn increasingly to using information as a business asset, PwC and Iron Mountain have created the first Information Value Index. The Index looks primarily at information exploitation and investigates the level of awareness and priority businesses currently assign to deriving value from their information.
Only 4% Of Companies Are Part Of The Information Elite, Scoring Over 90%
The Information Value Index was calculated from 1,800 global responses to 36 survey questions aligned to core organizational and technical capabilities. Questions delved into governance and culture as well as the skills and tools available within each organization to realise the full potential from their information. The findings place an index value against an organization depending on how information savvy it is.
Only 4% of respondents can be considered part of the information elite - scoring over 90% on the index. A further 20% are just behind them. Most businesses still have a need for a clearly defined information management strategy in order to gain competitive advantage.
Taking Responsibility For Information Management
The quest for an information advantage now influences business strategy. Failure to embrace the changes and put information management strategy plans into action is no longer an option, with 83%* of organizations seeing return on information as a priority. Failure to sit up and take notice risk obscurity in the long-term.
But whose job is information management? If extracting value from information is a business priority, the C-Suite should be involved. But the latest research from Iron Mountain and PwC suggests this isn’t the case in most organizations. 41% of companies said that IT takes the
lead when extracting value from data, and just one in three businesses (36%) embrace the drive to manage information across the whole organization. Furthermore, many senior managers believe that their organizations are more competent at value extraction than they actually are.
41% Of Companies Said It Takes The Lead When Extracting Value From Data
In fact, 71% of senior business leaders are confident they have a strong track record, but 52% think their competitors are doing it better. Approaching half (43%) of all businesses in the study have no plans in place to build competence in Mountainvalue extraction because they hold a misplaced belief that it’s already happening. Organizations aren’t using resources to best effect to extract value from information; they simply don’t have the relevant talent and data analysts, and many are still heavily reliant on Microsoft Excel to manipulate data.
Cost reduction and revenue increases are clear areas for potential gains. The primary uses for harnessing data and extracting value are cited in the IDC research, Mining for Insights: Rediscovering the Data Archive, 66% of companies are reducing their IT operational costs associated with locating and retrieving data, and 68% of companies use archives to improve customer service while 63% use them to enhance revenue opportunities.
Of Businesses Are Commited To A Company-Wide Informationmanagement Policy
Barriers To Return On Information
Only 38% of organizations are currently undertaking the business analytics critical to driving additional revenue through better understanding markets and improving products, service delivery and customer service. Many still place importance on managing information for data protection, compliance and legal reasons. However, significantly more value could be extracted from information archives. 5% of companies believe up to 10 times more value could be extracted and a further 22% believe they could extract between five and ten times more value. So what is holding them back?