Poor Data Quality Keeps CEOs Up at Night
A leadership position in the business world is fraught with stress. Each day, the decisions made by C-level executives affect the livelihoods of a sizeable number of individuals. With so much at stake, CEOs want as much information as possible to aid them in their responsibility of making the best decisions possible to continue company growth and look out for the interests of customers and employees alike.
Unfortunately, poor data quality is affecting the decision-making processes at the very top of most businesses. According to a report by Forbes Insight and KMPG, 84% of the CEOs interviewed in the report are concerned their data quality is an issue when making business-critical decisions.
Monetary Impact of Bad Data
CEOs, like the ones interviewed in the report, are right to be concerned about the negative impacts of poor data quality. While estimates of the overall economic impact of poor data vary, the monetary impact on the business world is immense. While Gartner recently put the total at $9.7 million annually for large enterprises, IBM estimates the total impact on U.S. businesses at $3.1 trillion in 2016 alone. These totals don’t include fines imposed on companies for failing to follow data governance regulations in government, healthcare, and other industries.
The report also notes that businesses also stand to lose unquantifiable amounts of money due to lost sales, incomplete customer data, and poor customer service as a direct results of data quality issues.
Data Quality a Priority for the Future
In an effort to make smarter decisions, based on accurate and reliable information, 41% of large enterprises said they’re making data quality a priority in their investments. This move is largely based on the experiences of other C-level executives. Multiple articles and surveys have shown the business world that adopting a data-driven culture increases profitability, and data quality is a crucial component in that process.