Analytics Magazine Analytics Magazine, March/April 2014 | Page 30

DATA AS S ET S Information decay How the value of information diminishes over time. BY DHIRAJ RAJARAM, KRISHNA RUPANAGUNTA AND ADITYA KUMBAKONAM or those of you who still remember high school chemistry, you may recall that radioactive decay is an inherent property of all matter. And as a quantum physicist would tell you, while it is impossible to predict when a particular atom will decay, the chance that a given atom will decay is constant over time. We believe that the same principle holds true for information within an organization as well: While it is difficult to predict when a particular information entity (e.g., a set of data records) will lose its relevance for a decision-maker, it is certain that all F 30 | A N A LY T I C S - M A G A Z I N E . O R G information loses value over time. The parallels are striking – so much so that we believe that every information entity should have an attribute called “information decay” that describes how the value of this information decreases over time, much like the half-life captures the rate of decay for all matter. As far as the information entity is concerned, this phenomenon has accelerated in recent times as advances in analytics, data and technology have transformed the way organizations leverage information to drive decisions. Thanks to an explosion in data, there is not only a lot of information, W W W. I N F O R M S . O R G