The value of a well defined, well organised knowledge system.
So you want to buy a business. You go through all the correct research processes, checking out its market, its product fit, its books and historical profitability. You investigate the staff, identifying key personnel, you check its online and regulatory history for comments and considerations. Finally, you sit down with the books again, looking though the details a second time to see if you missed anything, or if any behavior indicates a risk that may later surface. One last check before you make the final decision.
What is the value and capability of the data assets, or more importantly, the knowledge system? As a few pertinent questions, and if the answers are “No”, perhaps add a few extra liabilities to the “Why Not to Buy” column in your assessment.
Is there a knowledge system in place, to ensure internal (and ideally external data) can easily be accessed and monitored in an integrated way? If NO then add a full BI and Data Warehousing cost to the “Why not to buy” column
Has it been quantified, in terms of dollar value in the balance sheet? What data does it manage, how much and how current? If NO then add an Audit cost to the ”Why Not to Buy” column.
Is it well managed in terms of a systematic, comprehensive strategy, with simple applications, independent storage and thorough data warehouse principles? IF NO then add Data Quality, Cleansing, Remediation and Reorganization costs to the “Why Not to Buy” column
Is it organically flexible, designed to be relatively independent of any specific vendor or technology, and capable of rapid responses or quickly incorporation new data sources and phasing out old ones properly If NO then add the cost of rebuild and rework of all components repeatedly to the “Why Not to Buy” Column.
Is the knowledge system independent of the ERP, or other business applications, including metadata and business rules and process knowledge? If NO calculate cost of replacing the ERP and other applications as a green fields installation with retraining of all staff and redevelopment of all business processes and add that number to your “Why Not to Buy” column.
We are all aware of the “Value of data” and the idea that “Data is the new oil”, clever catchphrases, but how many companies think of an enterprise wide, consolidated and independent organically designed knowledge system as a separate asset, adding a very tangible dimension of value to the business.
If you don’t have a good knowledge system strategy, call us. Using our unique Knowledge Tree model we can develop a new strategy for you, enhance a poor existing one or modernize the current system to a full business asset. Knowledge Threads are quick, but built with the future in mind – calculable and economic, coming it at 20-25% of traditional data warehousing costs.