The term “data value chain” describes the process of turning raw data into something of value. It involves collecting and analyzing data to derive actionable insights. Organizations use data value chains to uncover vast volumes of information spread across their operations and make it available and useful to the areas of the organization that require this intelligence. The data value chain is similar to other value chains, such as those in manufacturing, in that it breaks down the process into various subsystems, each involving inputs and outputs. However, one way that data value chains differ from other value chains is that the final product is often actionable insights rather than a tangible product or service.
The ongoing digitization of the economy has led to an explosion of raw information. Data has become a kind of medium of exchange that flows through our economy. And as with any currency, data only has worth when there are principles about how it is valued, measured, and traded. Integrity across the data value chain is critical. This presents an opportunity for CPAs (Certified Public Accountants), who are well positioned for the critical role of ensuring integrity by providing oversight and governance of data value chains.
Data value chains engage experts like data brokers, software engineers, data analysts, and programmers. They collect data, exchange it, analyze it, and provide solutions on how to use it, such as feeding it into an artificial intelligence model.
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