New framework for valuing datasets – the new type of business assets

A shift in focus to quality

The survey of 150 data science professionals was the final stage after the researchers had developed and refined the framework. “We were particularly interested in evaluating the framework's accuracy, comprehensiveness, clarity, and usefulness, and the results were illuminating,” said Prof. Ting Li.

Overwhelmingly, participants found the framework to be clear, comprehensive, and easy to use. They liked the inclusion of qualitative and quantitative parameters, and the visual representation that helped them to easily understand the information.

But what was more interesting was what the survey revealed about the relative importance of the five parameters. The researchers expected data quantity and data rarity to be seen as significant, but the data science professionals they talked to also valued factors such as data quality and data security. “This underscores the shifting focus in the data science community from sheer data quantity to data quality,” says Prof. Li.

Suggestions for improvement 

Insights from the survey were instrumental in fine-tuning the framework and provided valuable direction for its further development and use. Data science professionals suggested minor modifications to the framework: more clearly defining the factors, and including additional factors or subfactors under each parameter. “Most of these suggestions were already implicitly covered within our framework or the full report, confirming its comprehensiveness,” said David

The data science professionals also suggested focusing on a more practical approach in applying the framework in future – like comparing actual datasets for pricing.

Pivotal implications and benefits

The key findings have implications that could be pivotal for the monetization of data. There could be ‘a new era of understanding, evaluating, and capitalizing on data assets across multiple contexts’ suggests dr. Sameer Mehta

“Our framework, which is bolstered by the acceptance of the data science community, offers a systematic approach to assess the value of data and its potential market price. It means we now have a holistic comprehension of the value of data, and it’s possible to guide strategic decision-making linked to data management and monetization. It’s ready for real-world deployment.”

Prioritise quality 

There is already a demand for the most valuable datasets that have a large quantity of high-quality data with extensive applicability. To escalate the value of the data, the researchers urged data providers to prioritize:

• Data quality and quantity management;
• Uncovering novel data applications;
• Managing data for privacy and security, especially in sectors dealing with sensitive data;
• Optimise data usability, trustworthiness, and perceived value.

While the framework is effective and adaptable and ready for practical use, there are still some refinements to be made for dealing with unique dataset characteristics and contexts.

“Lastly, our research reveals that data is multifaceted and is affected by the interplay of internal and external factors. Now that we know this, we need a nuanced understanding of the value of data to be able to make strategies that are effective. Data providers need to account for a broad array of factors based on their data's specific characteristics and context.”

“Our research paves the way for a more structured, informed, and efficient approach to data monetization, benefiting organizations, individuals, and the broader data science community,” said David
 

“Apply it, test it, refine it” 

The researchers’ framework offers a robust and validated tool for assessing data's market price and is a springboard for further exploration and refinement, tailored to the unique characteristics and contexts of different datasets. They invite the global data science community, industry practitioners, and researchers to leverage the framework in their respective fields. “Apply it, test it, refine it,” they say. “Let its insights guide your strategies for managing and monetizing your data assets. At the same time, we call on you to share your experiences and insights gained from using the framework. This will allow us to collectively refine and enhance its effectiveness, ensuring it remains relevant and valuable in a fast-evolving digital landscape.

“Together, we can navigate the complex world of data monetization, unlocking the untapped value of our data assets and shaping a more efficient, transparent, and equitable data economy. This is not just an opportunity; it's an imperative. The future of data monetization is in our hands. Let's shape it together.”