Definition: Economic Value Information refers to the quantifiable worth of data and information in economic terms. It is a crucial element in the digital economy, where information is used to drive decision-making, innovation, productivity, and competitiveness. The value is derived from the ability of this information to enhance business processes, reduce uncertainties, and create new opportunities. It can be measured in various ways, including the impact on revenue growth, cost savings, or strategic advantages gained. This concept is particularly relevant in the IT sector, where data is often considered a valuable asset that can be leveraged to create economic value. Source: EIRA team Additional information: Economic Value of Information (EVI) refers to the quantifiable benefit or worth that information holds within an economic system. It is a measure of the potential or actual contribution of information to the creation of wealth or the achievement of a competitive advantage. The economic value of information is not inherent but is determined by its relevance, accuracy, timeliness, completeness, and the cost of acquiring, processing, storing, and distributing it. In the context of information technology, the economic value of information is often associated with data-driven decision making, business intelligence, and knowledge management. Information, when processed, organized, and interpreted, can lead to insights that drive strategic decisions, optimize operations, enhance customer service, and innovate products or services. For instance, a company might use customer data to identify buying patterns, preferences, and trends, which can then be used to tailor marketing strategies, improve product design, and enhance customer experience. The economic value of this information is realized when these actions lead to increased sales, customer retention, and market share. Moreover, the economic value of information can also be realized through cost savings. For example, a company might use operational data to identify inefficiencies or bottlenecks in its production process. By addressing these issues, the company can reduce waste, improve productivity, and lower production costs. However, the economic value of information is not always positive. If the information is inaccurate, outdated, or irrelevant, it can lead to poor decisions, wasted resources, and missed opportunities. Similarly, if the cost of acquiring, processing, storing, and distributing the information exceeds its potential benefit, then its economic value is negative. Furthermore, the economic value of information can be influenced by external factors such as market conditions, regulatory environment, and technological advancements. For instance, changes in data protection laws can affect the cost of data collection and processing, thereby impacting the economic value of information. In conclusion, the economic value of information is a dynamic and complex concept that reflects the potential or actual contribution of information to wealth creation or competitive advantage in an economic system. It is determined by a range of factors including the quality of the information, the cost of managing it, and the external environment in which it is used. Example: 1. E-commerce: The economic value of information is highly evident in the e-commerce industry. Companies like Amazon and eBay use customer data to personalize shopping experiences, recommend products, and predict future buying behavior. This information is valuable because it helps these companies increase sales, improve customer satisfaction, and gain a competitive edge. 2. Digital Marketing: In digital marketing, the economic value of information is seen in the use of customer data to create targeted advertising campaigns. By analyzing customer data, companies can identify trends and patterns in consumer behavior, which can be used to create more effective marketing strategies. This information is valuable because it can lead to increased sales and improved customer retention. 3. Banking and Finance: In the banking and finance industry, information such as credit scores, financial history, and risk profiles are used to make decisions about loans and credit. This information is valuable because it helps banks and financial institutions manage risk and make informed decisions. 4. Health Care: In the health care industry, patient data is used to improve patient care, predict health trends, and conduct medical research. This information is valuable because it can lead to improved patient outcomes, more effective treatments, and advancements in medical research. 5. Supply Chain Management: In supply chain management, information about suppliers, production processes, and distribution channels is used to improve efficiency and reduce costs. This information is valuable because it can lead to improved operational efficiency, cost savings, and increased profitability. 6. Telecommunications: In the telecommunications industry, customer data is used to personalize services, predict usage patterns, and improve network performance. This information is valuable because it can lead to improved customer satisfaction, increased usage, and improved network performance. 7. Energy Sector: In the energy sector, data about energy usage, demand patterns, and resource availability is used to manage energy production and distribution. This information is valuable because it can lead to improved energy efficiency, cost savings, and more sustainable energy practices. LOST view: OV-Customs Functional Architecture Principles Identifier: http://data.europa.eu/dr8/egovera/EconomicValueInformationBusinessObject EIRA traceability: eira:InformationBusinessObject ABB name: egovera:EconomicValueInformationBusinessObject EIRA concept: eira:ArchitectureBuildingBlock Last modification: 2023-08-08 dct:identifier: http://data.europa.eu/dr8/egovera/EconomicValueInformationBusinessObject dct:title: Economic value Information Information