Today, even small to mid-size businesses, that is 5 employees up to 500 employees, should be taking a renewed interest in how they govern their data. This is for two key reasons; increasing the value of your company and increasing privacy regulations. We lay these out in summary form.
Treating Data as an Asset
This is a fairly new concept for businesses of all sizes, but it can have an immense benefit on a business. When you treat your data as an asset, it means you’re setting a value to the information you collect, store and leverage. You give data equal weight to how you manage your corporate finances. The good news is, you can easily apply GAAP standards to data. Reach out to us if you’d like our White Paper. By managing your data as an asset, you will also improve the valuation of the business when it comes time to sell or acquire. You may also get better insurance. Additionally, you will be more prepared for the impacts of a data breach. Which will happen at some point.
The Changing Privacy Law Landscape
Canada and other Western democracies are beginning to aggressively update their privacy laws. In Canada, this is currently underway and will likely see legislation passed in 2022. Also, technology companies like Apple and Google, are putting more emphasis on privacy. If you provide any kind of online customer service and/or have a mobile app, this will have an impact. Putting good data governance in place now can save significant future investments.
Most businesses are used to managing physical assets, so data as an asset is fairly new, but it is not going away. The more technology we bring into the business, the more data is being collected and the more you will need information management skills and capabilities and that means data governance. And hey, nothing wrong with adding a few million dollars to your corporate value without having to be hit in tax terms either.