Data is like the corn flakes

In our information systems and IT shops, computers, communication networks, programs, systems, programmers, indeed, all IT/IS personnel, are merely "factors of production." We don't "eat" the factors of production of corn flakes - the bins which store the corn and other ingredients, machines which roll out the corn, which mix the ingredients, and fill the boxes, and the belts and pipes that move the product in the warehouse, and even the warehouse. No, we eat the corn flakes, just like we "eat" the data. It is the output from our computer information systems which is of value.

Data must be managed as a asset

by Martha Lemoine, on the Data-centric manifesto.

Everest responds:

Yes, we often say this but what does it really mean. Look at the definition of Asset in accounting. Organizations spend money. We call these expenditures. The general assumption is that it benefits the current accounting period (year) because it is basically helping to generate revenue for the same period in which it is spent. So we then call it an expense. However, if it is a relatively large expenditure which benefits future years, say a new building or piece of machinery, then accountants want to capitalize the expenditure and spread it as an expense (depreciation) over multiple years, offsetting future revenue it helped to generate. A capitalized expenditure is called an asset. Capitalizing an expenditure, pushes an expense into the future, thus increasing revenues for the current accounting period or year. .. Now in the case of data, does it benefit future time periods, i.e., help to generate revenue in the future? Of course. So what expenditures are made to collect, store, process, retrieve, maintain, update, etc.? Should they be capitalized? That is the hard part. Nobody does, except maybe a firm whose business is selling data, but most of the time they don't. So we must be careful calling data an "asset." Nevertheless, we can certainly call it "something of value" which, as you say, must be managed as an asset.