4 ms·
I think the better analogy is inventory, which is an asset. The value of data depreciates over time. Having too much data that is not producing insight or value
by brianpan 11y ago
I think the better analogy is inventory, which is an asset. The value of data depreciates over time. Having too much data that is not producing insight or value is inefficient asset allocation.
In other words, lean principles should be applied to data. Reduce data collection that doesn't add value. Calling data a liability is not quite the right analogy for me.
- stephengillie 11y agoAlso, both are stored in warehouses.
- riskable 11y agoThe problem with this is that while the value of data may depreciate over time the cost to store it also costs less over time due to Moore's law and Kryder's law.
- brianpan 11y agoThe depreciation isn't the important part. The article suggests considering data as a liability in the accounting sense. But the author should have stopping at saying it's a liability in the non-accounting definition. Assets have value, but there is risk associated with it. Assets like inventory can lose value because of depreciation, or because demand for the finished good has dried up, there's a risk of theft, there's a cost of storage, etc. Data should be viewed as an asset like inventory and lean principles can be used to reduce your risk and produce customer value efficiently.