5 ways in which poor data quality can cost you

We all know that data quality issues can cause frustrations, delays and hinder decision making. What we don’t always appreciate is that there is a cost associated with these data quality issues. In order to elaborate this point, I’ve described 5 ways in which this cost manifests itself along with some examples of what happens in real life: 1. Cost of fixing data Your team is always in fixing mode, ensuring all data issues reported by users are being resolved ASAP. That’s great news for the users! Whilst this is a common situation in many organisation that I have come across, what these organisations (or their managers) fail to see is that they’re investing their technical resources to fix data problems instead of focusing on value creating activities within the organisation. In effect, these technical resources are merely expenses to the organisation. The cost to the organisation manifests itself through the hiring of new resources to perform the value creating activities or through delays to these projects due to their reliance on resources with other, more important, priorities. 2. Fines & Penalties Let’s go back to the first example. Now, what about all those data issues that haven’t still been identified or reported by users? What if your organisation is legally obliged to respond to customer correspondence, warranty claims, etc within a certain period? If no one notices that something is missing, it won’t be reported, and won’t be addressed. Just the simple action of doing nothing because nothing appears to be wrong in itself is likely to lend your organisation to being fined by the authorities or regulatory bodies. Again, a simple solution...