aalto1 untyped-item.component.html
Challenges of valuation in data businesses – Case study
Loading...
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Master's thesis
Ask about the availability of the thesis by sending email to the Aalto University Learning Centre oppimiskeskus@aalto.fi
Authors
Date
Department
Major/Subject
Mcode
Degree programme
Language
en
Pages
115 + 1
Series
Abstract
New business opportunities that are based on data utilization are various. This is due to the unique qualities of data. The increasing data intensiveness creates inflating amounts of new intangible data assets, which are extremely dynamic in nature. Even though they incorporate great value, efficient methods for portraying the value are absent. Current standards lack a commonly acknowledged method for portraying intangible value, and companies lack the tools for assessing it. As the most commonly used valuation methods have initially been built to portray tangible values, these approaches are increasingly facing a profound change.
The fundamental aim of this case study is to examine the challenges related to valuating data businesses as well as to discover the features for non-traditional valuation methods. As the topic is a rather marginally studied area, it first requires defining the qualities of data as well as the new business opportunities generated from it. Secondly, examining the most commonly used valuation methods, and their limitations, provide a basic frame for the study. The empiric findings of the study are based on interviews from six case companies, which are all facing further digitalization needs and leaping towards a more data intensive approach from more traditional business boundaries.
According to the findings of the study, having efficient methods for assessing the value can provide various internal and external benefits. The non-traditional valuation approaches are defined by their intuition-based and flexible approaches that aim at recognizing the basic logic of the value creation. Additionally, including higher-level inputs and applying value- ranges assure outcomes that are more realistic. This requires for the companies to critically assess the current traditional structures. As a conclusion, in order to recognize the accurate value, the valuation methods should adjust to the changes in the object under valuation.
Description
Thesis advisor
Vaivio, JuhaniMäntylä, Martti