Data currency is monetary value assigned to data to identify its financial significance to an organization.
Once the monetary value of data assets is identified, it may be used as the unit of exchange in a transaction, either as the sole payment or in combination with money. Another reason to assign a value to data is to quantify its importance to the business. That evaluation can help an organization in data management planning and related efforts like business continuance and disaster recovery planning. This model recognizes that information assets have financial significance to the business but often involves prioritization or relative valuation rather than assigning a specific dollar figure to data.
Direct financial models of data monetization include:
- Identifying the cost of replacing data in the event of its loss.
- Identifying the amount that data contributes to an organization's revenue.
- Identifying what the data could generate if sold.
The concept of monetizing data is central to a new field of study known as infonomics, which involves the production and consumption of information and the transfer of money to produce, sell or obtain it. Infonomics is an acronym made from the first part of the word information and the last part of economics.