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Data Monetisation and Data Valuation Training Course

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  1. Data Valuation Downloads
  2. Why we need to put a dollar value on data

    Data valuation 101: why you need hard numbers to succeed
    4 Topics
  3. Setting the scene - a Finance 101
    What are some financial metrics your management will care about?
    3 Topics
  4. The four categories of data value
    4 Topics
  5. Establishing a baseline
    The value of intangible assets
  6. Data valuation 102: how much is your data worth today?
    4 Topics
    |
    1 Quiz
  7. Fail-Proof Data Valuation Techniques
    An introduction to data valuation models
  8. Enhance Experience - how data can win you more business
    2 Topics
    |
    1 Quiz
  9. Wheelspin Wipeout - Put a price on waste and rework
    2 Topics
    |
    1 Quiz
  10. Eliminate ambiguity - how to drive productivity across your enterprise
    3 Topics
    |
    1 Quiz
  11. Opportunity knocks - where can we sell or barter our data?
    4 Topics
  12. Data Debt - the high cost of doing nothing
    2 Topics
    |
    1 Quiz
  13. Infonomics - a practical review
    7 Topics
    |
    1 Quiz
  14. How much does it cost to be wrong?
    1 Quiz
  15. Using data valuations
    How do we use these data valuations?
  16. Mapping data valuations to Enterprise value
  17. Running Data Monetisation Workshops
  18. Growing data value through time - Bill Schmarzo's Economic Value of Data
  19. Next steps
    1 Quiz
Lesson 3 of 19
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What are some financial metrics your management will care about?

What do managers care about when making business decisions?

One more thing we’ve got to do before we leap into data valuations is to bring everybody up to speed with the things that matter to finance people and your accounting team. So let’s have a look at some key metrics and ratios that matter there.

These are the key metrics that your business will use to make business investment decisions. So what are they?

cashflow

Cashflow

Firstly, you’ve got accounts receivable and accounts payable, and this is really just how much money someone owes your business versus how much you owe other people. And from this, we look at cash flow, which is obviously the lifeblood of the business. It’s about the money that’s being paid to you immediately and that can be used to pay your bills on time.

Balance the books

So on the balance sheet, you’ve got the assets over on one side, and those assets are the things that you own and you could sell for money. And on the other hand, you have liabilities and the liabilities are things that you’ve committed to paying. What’s left once we take those two from one another is the equity that you have in your business, which is the overall value and the money that should be returned to shareholders, once all of the assets are sold to pay off all of the liabilities.

What’s the business worth?

You’ve also got to look at the market capitalisation or market value of your firm.

And really, this is just about the total number of shares that are outstanding and the dollar value per share. If you multiply that together, you get a whole valuation of what it would cost to buy that business.

That’s not the only story, though. More people want to look at enterprise value when acquiring businesses because they may just pay all of the money for all of your shares, but then you take on the debt that that business has. So how much more money would it cost for me to pay off all of its debt? But you also take on all of the cash it has in the bank, so if there’s cash sat there, we can take that off the market value because we get money for nothing.

Profitability

Lastly, we’ve got EBITDA, which is earnings before interest, tax, depreciation and amortisation, and it’s a crude metric that sits and looks at the rough profitability of the core elements of your business when you ignore all of the other cost components that go with running a business today.

So it’s important that we put our numbers into a format that the accounting people and the business people are used to and that they understand today. This will help them understand the value of the work you’re proposing, and it will make it relatable to other investment decisions they have to make today.

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