Infonomics

We believe information is an asset in a literal sense, in accordance with Infonomics principles. Our strong data expertise helps businesses valuate their information assets and put them to their optimal use.

What is Infonomics?

Infonomics, a term coined by Gartner, is the practice of quantifying the financial value of companies’ information. The infonomics framework is applied so information can be leveraged as a real business asset.

Quantifying Information Value

By effectively leveraging the valuation models, Cicero brings you the expertise to better understand, discern, and evaluate your useful information. We optimize the use of your information and maximize its value.

Information Value Realization

Idle data is an expense, but leveraged data is an asset. Cicero thinks critically from your company’s perspective, helping you to uncover the unrealized information value.

Our Competitive Advantage

Cicero is not merely a data analysis services provider. We distinguish ourselves by applying strategic vision, systematic processes and comprehensive analysis towards maximizing the value of your data.

Principles of Infonomics

The value of information aligns with the accounting perspective of asset recognition. Information has future economic benefits and it is controlled by an entity as a result of past transactions or events.

Seven principles of infonomics are:

  1. Information is an actual asset
  2. Information has both potential and realized value
  3. Information’s value can be quantified
  4. Information should be accounted for as an asset internally
  5. Information’s realized value should be maximized
  6. Information’s value should be used to prioritize and budget business initiatives
  7. Information should be managed as an asset

Source: Gartner Inc.

Information Value Gap

Information has both realized and potential value; this constitutes the information value gap:

  • Realized value: information has already been captured in company’s current market value
  • Potential value: the anticipated potential benefit of information if it is put to optimal use

One of the biggest challenges for companies in today’s marketplace is to narrow and close the information value gap. Two criteria must be met:

  • Companies must understand their data and be able to distinguish valuable information from the useless information
  • Companies must recognize how the information could potentially be used and how to use it

From Valuation to Realization

Cicero puts infonomics theory into practice. We apply a systematic approach to help businesses not only quantify, but materialize the value of their information.
We rigorously adhere to proven value realization processes in order to ensure all the valuable information is correctly identified and put into its best use.

Step I

Quality Data Collection

  • Internal Functional Data
  • Primary Research Data
  • Secondary Data

Step II

Data Analytics & Modeling

  • Statistics & Econometric Modeling
  • Segmentation studies
  • Economic Impact Modeling
  • Cost-effectiveness Analysis
  • Competitive and Landscape Analysis
  • Survival Analysis
  • Experimental Design
  • Market Basket Analysis

Step III

Data Valuation & Strategy Proposition

  • Market Entry Strategy
  • International Expansion/Acquisition Strategy
  • Customer/Employee Retention Plan
  • Business/Sales Transformation
  • Operation/Procurement Optimization Plan

Step IV

Implementation & Optimization

  • Post-merger Integration
  • Performance Evaluation
  • Efficiency and Process Management
  • Sustainability Studies
  • Portfolio Evaluation

Fundamental Valuation Models

Intrinsic Value of Information (IVI)

This model evaluates information characteristics such as accuracy, accessibility, completeness and ubiquity. The ubiquity feature of this model indicates whether the information is unique to your business. Scarce the information will generate greater value.

Business Value of Information (BVI)

This model evaluates accuracy, completeness, and relevance of data. Timely data provides more relevant information and is more valuable. This model can be tailored to specific needs and be applied to unstructured data or third-party data.

Performance Value of Information (PVI)

This model measures how owning a unit of information contributes to a business objective (KPI targets) over a given period. The information value is the differences between the KPIs when the piece of information is known vs unknown.

Financial Valuation Models

Cost Value of Information (CVI)

This model measures how much a company would need to pay to acquire the information, or reacquire the information if it is lost (the replacement cost).

Economic Value of Information (EVI)

This model measures how a piece of information contributes to the revenue of an organization. The information value is the differences in revenue generated with the knowledge vs without.

Market Value of Information (MVI)

This model evaluates the revenue that would be generated by selling (renting) the data. The model uses public-traded data markets if the valuation target does not have an open market. A discount rate should be applied to reflect the time value, since information can be sold multiple times.

Benefit to Business

Strategy

This model measures how much a company would need to pay to acquire the information, or reacquire the information if it is lost (the replacement cost).

Risk

A consistent set of value metrics reduces illegal information exposure and improves data quality.

Productivity

Managers can compare the effectiveness of information, and better deploy it.

Value Premium

In acquisitions, investors put a higher value on information.

How Can We Help You?

To discuss how our team can help your business achieve true results, please Contact Us.

  • This field is for validation purposes and should be left unchanged.

How can we help?

To discuss how our team can help your business achieve true results, please contact us.

News & Publications

Client Results