On the Valuation of Information Assets

When considering the diagram below, remember that the perceived value of an information asset depends in part upon the ease with which that asset can be replaced. Certain components of an information system such as hardware, mobile devices, operating systems, and off-the-shelf software can be easily replaced. By contrast, custom applications, custom mobile apps, files, and data are often unique and essentially irreplaceable.

Perhaps you can think of an example in your own life where you or someone you know has lost a laptop computer or a mobile device. Many times people who lose such devices are not upset primarily about the loss of the physical device or the physical hardware itself, but rather are upset about the loss of their photos, documents, or other valuable data. It is such files and data items that represent much of the value of an information system to its users, and we can understand intuitively through examples such as this why the value of an information asset commonly depends upon the ease with which that asset can be replaced.