Records Appraisal and Infonomics

Questions and Answers

What does ISO 15489-1:2016 describe records as?

Intangible goods

Digital commodities

Liabilities

Assets (correct)

According to ISO/TR 21946:2018, what is the purpose of appraisal in record management?

To identify records for disposal

To analyze business context, business activities and risk for decision making (correct)

To assign monetary value to records

To classify records based on sensitivity

What is the primary goal of an organization, according to the concept of Infonomics?

To manage records and information

To minimize risk and maximize security

To make a profit or serve the public (correct)

To comply with regulatory requirements

What is the main challenge in determining the value of records, according to ISO 15489-1:2016?

Difficulty in assigning economic value to records Signup and view all the answers

What is the focus of the concept of Infonomics?

The economic significance of information Signup and view all the answers

What is the relationship between risk mitigation and economic benefits in records management?

Risk mitigation is an indirect method of deriving economic benefits Signup and view all the answers

Who challenged the traditional view of information as a representation of business activities?

Douglas B. Laney Signup and view all the answers

What is the primary objective of appraisal in records management, according to ISO/TR 21946:2018?

To enable decision making on record creation and capture Signup and view all the answers

What is one method that The National Archives uses to generate income from digital images?

They sell high-resolution digital images for a per-image 'supply' fee. Signup and view all the answers

What additional fee does The National Archives impose for commercial use of its images?

A reproduction fee Signup and view all the answers

What is a significant concern regarding information assets based on increased value?

Protecting those assets from potential loss Signup and view all the answers

Which aspect does NOT affect the level of protection required for information assets?

The market demand for the data Signup and view all the answers

What type of content does Shutterstock license for training machine learning models?

Curated datasets that obey legal content regulations Signup and view all the answers

What type of fee is associated with a digital image from The National Archives for an image downloaded for personal use?

A per-image supply fee Signup and view all the answers

What defines Infonomics according to Laney?

The management and accounting of information with rigour similar to traditional assets. Signup and view all the answers

What significant event led to businesses filing insurance claims for lost data, which were subsequently denied?

The attacks of 911. Signup and view all the answers

Which type of asset is emphasized as not being accounted for on balance sheets despite its value?

Data and information assets. Signup and view all the answers

Goodwill is described as:

The value paid for a company over its book value. Signup and view all the answers

According to the information provided, what has remained unchanged regarding data as a corporate asset?

It is still not recognized as an asset by accounting practices. Signup and view all the answers

What is classified as a purchased intangible asset?

Assets like trademarks that need to be acquired. Signup and view all the answers

Which of the following is an example of a tangible asset?

A cash register Signup and view all the answers

Which statement regarding intangible assets is true?

They may include items like secret formulas and internet domain names. Signup and view all the answers

What impact did the 2023 interview with Laney highlight about the treatment of data in corporations?

Organizations need to treat data as an asset to maximize its business value. Signup and view all the answers

Which factor may lead to the inclusion of intangible assets on a company's balance sheet?

Intangible assets must be recognizable and valued upon acquisition. Signup and view all the answers

Which of the following intangible assets of Coca-Cola is not directly mentioned in the text as contributing to the total intangible assets value of $33,223,000?

Customer loyalty Signup and view all the answers

Based on the information provided, what percentage of Coca-Cola's total assets in 2016 were intangible assets?

20% Signup and view all the answers

Which of the following is NOT mentioned in the text as a potential item to be reviewed when assessing a company's intangible assets?

Customer demographics Signup and view all the answers

The text highlights a shift in the composition of Coca-Cola's assets. Which statement best captures this shift?

Coca-Cola is increasingly relying on intangible assets, such as intellectual property, to drive its success. Signup and view all the answers

Which of the following is NOT a common characteristic of asset-light business models?

Heavy reliance on physical assets Signup and view all the answers

How did Uber adapt its business model in response to the COVID-19 pandemic?

Uber expanded its services to include delivery and freight, leveraging its core platform. Signup and view all the answers

How does Uber generate revenue through its partnerships with drivers?

Uber takes a percentage commission from each fare generated by drivers. Signup and view all the answers

Which of the following is NOT an example of a service that Uber relies on, which utilizes algorithms?

Apple Pay Signup and view all the answers

Based on the text, which of the following best describes the concept of 'route finding' algorithms?

Algorithms that calculate the most efficient path between two points, considering factors like traffic and distance. Signup and view all the answers

Which of the following statements accurately reflects the relationship between information assets and GAAP?

GAAP does not specifically recognize information assets as a balance sheet item classification. Signup and view all the answers

Which of the following is NOT a factor that Uber uses to determine driver ratings?

The driver's experience level Signup and view all the answers

Based on the text, what is the primary reason why Uber can be considered a company that leverages information assets effectively?

All of the above. Signup and view all the answers

What is the primary challenge in valuing information assets like Uber's algorithms?

Assessing the value of the information processed by the algorithm Signup and view all the answers

What does the text suggest as a method for valuing a class of information assets, like customer and driver data in Uber's system?

Calculating the expenses incurred in generating, capturing, or collecting the information Signup and view all the answers

Which of the following is NOT a method described in the text for valuing information assets?

Estimating the potential financial impact of the information on Uber's revenue Signup and view all the answers

The text states that a pure algorithm is explicitly exempted from being patentable in the U.S., but an application of the algorithm may be. What does this suggest about the patentability of Uber's algorithms?

Uber's algorithms are likely patentable because they are applied in a specific business method. Signup and view all the answers

What is a key requirement for data/information to be considered worthy of valuation?

The data must be of high quality and reliable. Signup and view all the answers

Which of the following statements best describes the relationship between Uber's algorithms and its information assets?

Uber's algorithms and information assets are equally important and interdependent. Signup and view all the answers

Based on the text, how does Uber use information assets to achieve its goals?

By offering personalized services based on user preferences. Signup and view all the answers

The text mentions a patent (US9066206 B2) related to Uber's business methods. What does this patent likely cover?

The system for dynamically positioning drivers based on demand. Signup and view all the answers

Study Notes

Information Value and Appraisal Standards

ISO 15489-1:2016 defines records as “assets” but lacks clarity on their economic value.
Appraisal involves analyzing business context and risk to determine which records to create, manage, and retain.
ISO/TR 21946:2018 provides guidance on appraising records, linking them to business functions and risk assessments.

Infonomics

Infonomics, as defined by Douglas B. Laney, is the discipline that assigns economic significance to information.
Laney argues for treating information as formal assets, similarly to tangible and intangible assets.
Historical context: Following 9/11, insurance claims for lost data were frequently denied, reinforcing the ambiguity surrounding data as an asset.

Asset Classification

Business assets can be tangible (physical) or intangible (non-physical such as patents, trademarks).
Goodwill represents the premium paid above book value during acquisitions, indicating intangible asset valuation.
Purchased intangible assets are recognized for those that lack physical presence but provide value.

Information Assets Definition

Information Assets encompass elements not typically recorded on balance sheets, recognized for their value and lifecycle.
The UK’s National Archives defines them as defined bodies of information, while Gartner includes various forms such as employee knowledge and structured data.

Intangible Assets in Business

Coca-Cola reported intangibles comprising 34% of its total assets in 2024, emphasizing the growing significance of non-tangible assets.
Generational Equity suggests reviewing intangible assets as part of mergers and acquisitions for maximizing corporate value.

Asset-Light Business Models

Companies like Uber, Airbnb, and Instacart operate with low initial investments, yet achieve high returns.
Uber's revenue stems from driver partnerships (taking 20-25% commissions) and promotional affiliations with brands.

Algorithm Use and Information Valuation

Algorithms in companies like Uber optimize pricing and routing, significantly impacting service efficiency.
Valuing information assets depends on data governance and ensuring the quality of data.
Laney introduces valuation models: Cost Value of Information (CVI) calculates expenses for data generation, and Market Value of Information (MVI) assesses the potential exchange value of data.

Licensing and Revenue Generation

Organizations can license information assets, deriving income through subscription services or exclusive access agreements.
The National Archives generates revenue by selling digital images, highlighting how institutions monetize information assets.

Risk and Protection of Information Assets

Concerns surrounding the protection of information assets have surged as their value grows.
Risk management strategies depend on the potential impact of information loss and the organization’s risk tolerance.

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Description

Learn about records appraisal standards, infonomics, and how to assign economic significance to information assets. Understand the importance of business context and risk in determining records management.