Dealing with Dirty Data – Implications of Poor Data Quality Management
It’s no secret that data has an impact on the future of an organization based upon the vast insights that can be derived. However, if decisions for the organization are being made based upon inaccurate data, the missteps that can occur have the ability to debilitate the future of an enterprise.
Having recently worked with an entertainment company whose corporate executives had been told they had $400M in cash locked up in their organization, we’ve seen the devastating aftermath of poor data. After an extensive investigation and cleansing of any irregularities, or anomalies, the data actually revealed the company had less than $100M in cash to unlock. Needless to say, heads were on the line as much of the newfound, never to be realized, $400M had already been spent in the minds of the corporate leaders.
To ensure this doesn’t happen to you, it is critical to establish data quality standards and governance principles to ensure accurate data based upon the integrity, validity, accuracy, and consistency of your data. So, what are the top implications of poor Data Quality Management?
Once the integrity of an organization’s data is in question, stakeholders will begin to double check the data themselves resulting in wasted time, increased workload, and slower time to completion and decreased quality. Because they don’t trust the data, they spend their time hunting for inaccuracies, correcting errors, and searching for more reliable sources, instead of analyzing, and building stories based on the data.
Data scientists and information technology departments should spend time curating new projects and overseeing the strategic direction of the enterprise, not cleaning and organizing the data.
Business leaders and other decision makers rely on data to make important decisions that can change the trajectory of the business. Strategic decisions based on data that prove to be inaccurate, such as penetrating a new market, investing in a new product, or spending money on a new acquisition, can send your business in a downward spiral that will be difficult to recover from.
According to Gartner, an average of $15 million per year is lost due to poor data quality. We encourage you to also measure the annual financial costs of poor DQM for your operation. It is beneficial to discover the data error rate in your industry and compare it against your internal data error rate to gain the overall big picture of where your organization lies in the spectrum of costs associated with poor data quality. Imagine the savings, investments, and financial stability that you can bring to your organization by improving the quality of your data management.
Lack of Focus
Too much data can cloud your vision, making it impossible to remember your strategy or the mission you set out to achieve. With the abundance of data available, it is imperative to cut through the noise to reach a timely conclusion. Not only is data plentiful, but it is almost obsolete the minute it is reported. Time is of the essence.
The benefits of improving the quality of data go far beyond building trust, productivity and reducing costs. They extend to employee engagement, your reputation with consumers and focusing on the right strategy for growth. The goal should always be progress toward better data and improved decision making for the sustained long-term growth of your organization.
The accelerated adoption of digital platforms by companies of all sizes, operating in all industry segments, combined with the automation of common business processes, is driving increasing volumes of data for business leaders to curate, validate and organize. The explosion in the generation of data not only presents analytical challenges but also steals valuable time from the strategic operations of many organizations. Liberty Source’s harmonized approach to automation and human capital uncovers the underlying pain points that are impacting your organization and curates a personalized data experience to improve your data quality management.
Liberty Source’s data solutions are tailored to our client’s unique needs. We meet these needs through understanding our client’s strategic direction, assessing their use and need for data and ensuring alignment on the expected outcomes. We provide the cognitive service layer essential to enabling accurate and meaningful business decisions.