Assigning a bottom-line value to information.

• Author: Carlisle, Diane
• Position: Valuating Information Intangibles: Measuring the Bottom Line Contribution of Librarians and Information Professionals (Book - Book Review

TITLE: Valuating Information Intangibles: Measuring the Bottom Line Contribution of Librarians and Information Professionals

AUTHOR: Frank H. Portugal, Ph.D.

ISBN: 0-87111-512-3

PUBLISHER: Special Libraries Association

PUBLICATION DATE: 2000

LENGTH: 149 pages

PRICE: $34;95 U.S.; $24.95 SAA Members

SOURCE: www.sla.org

The book title--Valuating Information Intangibles: Measuring the Bottom Line Contribution of Librarians and Information Professionals--presents a tantalizing prospect to the records and information management (R/M) professional who has never had an authoritative answer to the question, "How do we know what this information is really worth?" The synopsis sounds even better--"A determination of the bottom-line value of libraries and information centers has proven difficult because of the intangible nature of the value, and the use of archaic accounting systems that ... focus on tangible assets rather than intangible ones."

Although the book was published by the Special Libraries Association, the records management community should be able to adapt the principles outlined. Librarians and records managers share some issues. Both deal with intangible resources. Both manage information that can have different values depending on how it is used. For both groups, assigning a bottom-line value to information is complicated by the fact that established financial accounting systems are based on tangible assets. Yet, in the Information Age, the need to assign a value assumes greater importance because information is a primary asset. It is important to the R/M professional in justifying the existence of the records management program. It is also important in mergers and acquisitions when a fair value must be established for contract negotiations. It is critical in determining how much insurance should be carried to really protect an organization's valuable papers and information.

The author outlines four possible approaches to establishing a financial value to intangible assets. Each method is described as to its scope, underlying assumptions, benefits, what it does not do, who can use it, and how to do the calculations. The author further states that, due to the complexity of this issue, multiple methods should be used to ensure as comprehensive an evaluation as possible. The book includes sample calculations for each method to enable readers to gain a thorough understanding of each method described.

The first method defined by the author...