At the heart of the knowledge economy

The 21st century is the era of the information professional. No, not another claim from the editor of IWR after a good lunch (I should be so lucky), but a summary of the prediction of the IBM Data Governance Council.
The council is a US-based industry group whose 50 members include big names from the corporate world including American Express, Deutsche Bank, Citi and Mastercard. Formed three years ago to help the business world take a more disciplined approach to how big companies handle data, it has produced an interesting assessment of life following the credit crunch.
The council concluded that failures in data governance were at the heart of the sub-prime crisis and that a regulatory backlash will see data governance becoming a regulatory requirement in some countries, initially in the banking and financial services industries. There is nothing like imposing a regulatory requirement for hoiking an issue up the corporate agenda. But the council goes even further. It is discussing the idea that the value of data should be recognised in the financial statements and should be treated as an asset on the balance sheet. The accountancy profession has always been a bit wary of intangible assets, with fierce arguments over if and how intellectual property assets such as goodwill, brands, and human capital should be recognised. The credit crunch and the argument over the value of financial instruments has underlined how difficult it is to inform investors about the changing asset values.
In the scenario painted by the council, the quality of data will become a technical reporting metric and key IT performance indicator. New accounting and reporting practices will emerge for measuring and assessing the value of data to help organisations demonstrate how data quality fuels business performance. Crucially the council sees the role of the chief information officer changing - with reporting on data quality and data risk to the board becoming a key task. The CIO will have the mandate to govern the use of information and report on the quality of the information provided to shareholders.
For information professionals it is an exciting idea, putting them at the heart of the knowledge economy and at the centre of corporate life. It is a vision which the profession should try to turn into reality.