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Poor Data Quality? You’re Not Alone
Checking out an article on TechWire, we found several statistics that perfectly support what we’ve seen within the data quality industry for ourselves. The basis of the article was really two-fold: first, that data quality is an inherent problem in every industry, and second, that these quality issues are extremely costly to organizations for a plethora of reasons. The numbers simply don’t lie. It is further proof that bad data is detrimental to most businesses and that addressing data quality can deliver immediate improvements in efficiencies, profitability, and offer a competitive advantage to businesses that adopt data quality protocols.
Data Quality Affects Everyone
According to a 2015 article in PR Newswire, 32% of any business’s data is likely in poor shape. That should be a shocking statistic to any executive or department head trying to run a data-driven organization. And these business leaders widely acknowledge there’s a problem; 77% of companies believe their bottom line is negatively affected by inaccurate and/or incomplete data.
Bad Data is Hurting Bottom Lines
IBM estimates that regulatory fines, lost revenue from poor business decisions, as well as legal fees that occur as a result of data errors has a massive impact on the business world as a whole. IBM puts this figure at a staggering $3.1 trillion dollars annually. This figure doesn’t include other cost-incurring data quality issues like lost time due to labor, manual data verification and much more. In reality, the costs of bad data are likely several times the $3.1 trillion figure when all factors are included.
What Can My Business Do About Data Quality?
We’ll have a blog on this very topic next week, but we’ll summarize the answer to the question by saying the first thing any company needs to do to address data quality it to address your data as an asset to your business. When you realize that data is a useful, valuable asset that can help your business become more profitable, incentive is created to ensure this asset is as clean, accurate and useful as possible to the organization and its stakeholders.