7 Key factors for information asset management

BY DR HANLIE SMUTS

Although information assets may not formally be recognised on a balance sheet, it is good practice for organisations to begin valuing their information assets so that it can be managed and wielded more effectively.

Here are 7 key factors for information asset management:

1. Recognise and manage complexity

Organisations are complex environments with access to big data datasets. With access to so much data and information, it is sometimes difficult to identify the useful data; it is not an information gathering problem, it is a filtering problem. The starting point is to create a clear information asset vision with the desired outcomes of the information management strategy. This describes and communicates how the organisation will operate and manage its information assets. In addition, it enables each department in the organisation to align themselves to the ultimate information asset management objective, and to make informed decisions about the best approaches.

2. Focus on adoption

Successful information asset management is about organisational and cultural change, as information management systems need the active participation of employees throughout the organisation. The level of participation is based on achieving sufficient adoption to ensure that required information is captured. Through change management programmes the organisation can ensure a critical mass of usage, ensuring that the systems that are deployed are useful and usable for employees. Effort must then be put into generating a sufficient sense of urgency to drive the deployment and adoption of new systems and processes. Stakeholders must all be engaged and involved in the information asset drive to ensure that there is support at all levels in the organisation.

3. Understand and measure information ROI

It is not enough to only improve information management “in the background”. While such improvement may deliver advantages, focus must be on demonstrating the return on investment (ROI) of information asset management, and how it delivers tangible and visible benefits such as the ROI that information delivers before and after investment in information technology. Understanding the value of information associated with organisational contracts, may assist to better assess a contract’s value and risks in order to set damage limits. Therefore, map the data application to business processes, technologies and organisational projects in order to create a basis from where ROI may be calculated. In fact, organisations that plan to become more information-centric and implement information-based business models, should make it a critical function to audit the actual and potential value of their information assets.

Successful information asset management is about organisational and cultural change

4. Improve information governance

Ensure that the organisation understands what information assets are already in place, and properly classify and create information asset inventories for any other asset listed in the balance sheet. Leverage AI, machine learning and natural language processing to ensure both older and new information is organised properly. Set up information policies, including retention policies that align with compliance regulations and other business rules to manage the information. Such policies may include organising and classifying information assets into logical categories with relevant metadata, guidelines around cleaning out information assets no longer needed or that is past its retention period or value, better management of 3rd party data sources and identifying information liabilities where the retention cost outweighs the future value of the information asset.

5. Secure information

Apply and monitor security and permissions to ensure only the right people have access to the information wherever it resides and according to information sensitivity. This will reduce risks and costs related to cyber theft and improper internal – whether accidental or on purpose - information disclosure. While improving understanding and measuring of information assets, as well as establishing proper information governance, also establish an information security budget aligned to the probable economic value of losing or misappropriating the information asset. If the budget is more costly than the value of the information assets, it may not be worth investing in expensive security tools.

6. Mitigate risks

Due to the intrinsic complexity of an organisation, there are many risks related to the implementation of information asset management solutions such as selecting inappropriate technology solutions, changing business requirements, integrating systems and failure to gain adoption by employees. Identify risks early on and determine mitigating action or risk avoidance strategies in order to manage information-based business models.

7. Demonstrate information asset value

What you do, often is more important than what you say. When implementing your information asset management strategy, choose opportunities where the organisation as a whole would be interested in, and cares about. This will set the organisation on the right path towards better information management practices and application of technologies. In addition, it will build momentum for future activities, deliver tangible and visible benefits and generate interest and enthusiasm from both end-users and stakeholders. All information has a future economic benefit Supplemental balance sheets that include information asset value can be an effective tool for planning, measuring and demonstrating information management maturity. This will also give CEOs a better overall picture of business value, provide CFOs with a tool for gauging investments and performance and give CIOs a technology mandate to support the organisation in managing information as a strategic asset.

Business leaders need to keep this in mind when considering business strategies and options for acquiring, administering and applying information. Information-centred success is based on a number of factors, such as its completeness, accuracy, consistency, timeliness and business process relevance. And like any asset, information asset value depends upon the organisation’s capacity to deploy it – start with the first step today.