In the ever growing world of big data, the benefits of implementing a strong data quality and data governance program become more apparent. Having poor data quality can cost a company major financial loss, as well as reputation. In numerous surveys, IT directors and program managers agree that poor data quality is a major obstacle in streamlining their company data. This can include inconsistent and redundant data, as well as inaccurate and conflicting data from various sources.
With corporate data growing at a rate of about 60 percent per year (varying by industry), something must be done to combat the ever growing problem of poor data quality. Here are a few other numbers to ponder:
- Bad data costs the U.S. economy about $3 trillion per year — and what’s even worse is that it may be costing your company 10-25 percent of its revenue
- 15-45 percent of a company’s operating expenses are wasted due to poor data quality
- The average company wastes about $180,000 per year on direct mailings due to poor data quality
Pretty scary numbers! This is a pretty easy problem to resolve once you’ve identified what the issues are. Some common issues contributing to poor data quality include:
-Data originates from various sources
-Data gets combined with other data, breeding bad data
-Not correcting updated addresses and customer information
-Incorrect segmentation for marketing purposes
-Lack of standard processes for managing data within the organization
Implementing data standards at your company or organization can take the guesswork out of a messy data program. The key is to tackle these data problems before they grow and proliferate, so implementing a data profiling program can help eliminate a lot of poor data.
- Understand if your data is good or bad
- Use a data quality tool to provide some digging and deep analysis of your data
- Establish certain business rules and standards after a good understanding of your data has been accomplished
- Enact compliance policies to enforce practices and maintain good data quality