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| Valuation
IT Assets |
Competent management should be able to enumerate an organization's
functional areas and the distribution of underlying informational support.
Creating and valuing task-related infospheres allows risk be correctly matched to reward,
enabling the measurement of changes in the quality of the associated information.
This probability of task success can then be mapped into volatility, which in turn is used to
price real options.
An information asset can be valued by measuring the changes in risk (real option call or put values)
that it generates. Information value itself is the difference between outcome or investment and the amount
left to be learned (additional knowledge) quantified in the real option time premium. The decisions to proceed with or abandon investments are mirror-images of each other.
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