By Karen Miglin – Internet and Social Media Marketing Manager
Most organizations today don’t monitor or analyze the quality of their data and information. Most do not have any formal processes to address data quality issues. In fact, most organizations cannot even identify who is responsible or accountable for the accuracy of the information utilized by their given business units.
Data Quality IS absolutely necessary to the growth, efficiency and productivity of your organization. Here’s why…
- Best practices in Data Quality can boost revenue by 66%.
- Experts estimate that poor data quality can cost organization’s between 20% to 35% of their operating revenue due to process failures and information scrape and rework. This number could increase up to 40% for organizations which are information intensive, such as banks, insurance and pharmaceutical companies.
- For the past 10 years, it has been said that the cost of poor data quality on American businesses is $600 billion annually. The source is a 2002 study by The Data Warehousing Institute. And according to this study, that was only the tip of the iceberg. If that number is anywhere near accurate, then it is safe to consider that the cost is significantly higher now.
- Research has shown that the amount of data and information acquired by companies has close to tripled from 2003-2007, while an estimated 10 to 30 percent of it may be categorized as being of “poor quality” (i.e., inaccurate, inconsistent, poorly formatted, entered incorrectly, etc.). This paints a pretty grim picture of what the statistics must be today.
- Half of procurement managers admit their spend data is poor and they are unable to measure its quality – even though 95% of the information is key to achieving their goals. (Supply Management.com – September 16, 2011)
Gartner says dirty data is a business problem, not an IT problem.
The implementation of a Data Quality initiative can ultimately lead to:
Reductions ranging from:
- 10 – 20% of corporate budgets,
- 40 – 50% of the IT budget, and
- 40% of operating costs;
And increases of:
- 15 – 20 % in revenues, and
- 20 – 40% in sales