NASA/DOD Aerospace Knowledge Diffusion Research Project. Paper 48: Valuing information in an interactive environment
Consideration effort has been devoted over the past 30 years to developing methods and means of assessing the value of information. Two approaches - value in exchange and value in use - dominate; however, neither approach enjoys much practical application because validation schema for decision-making is missing. The approaches fail to measure objectively the real costs of acquiring information and the real benefits that information will yield. Moreover, these approaches collectively fail to provide economic justification to build and/or continue to support an information product or service. In addition, the impact of Cyberspace adds a new dimension to the problem. A new paradigm is required to make economic sense in this revolutionary information environment. In previous work, the authors explored the various approaches to measuring the value of information and concluded that, in large measure, these methods were unworkable concepts and constructs. Instead, they proposed several axioms for valuing information. Most particularly they concluded that the 'value of information cannot be measured in the absence of a specific task, objective, or goal.' This paper builds on those axioms and describes under which circumstances information can be measured in objective and actionable terms. This paper also proposes a methodology for undertaking such measures and validating the results.