Making business decisions from bad quality data can lead to business failure. The fi0cial impact of bad quality data for business is huge. According to a research by Ovum, companies can lose around 30% of their revenue on average because they use low quality of data in their business process. Not only that, based on a research by Gartner, the annual cost that companies suffer due to poor data quality in average is estimated at USD 15 million. Bad quality of data can make companies lose their clients, not able to achieve revenue targets, reduce their productivity, increase unnecessary cost from bad analysis and misleading information, as well as the risk of not meeting compliance and damaged reputation. How to prevent this from happening? Proactive effort to maintain data quality is the key to solve these issues.
Avoid losing clients, revenue, and productivity from poor quality data
Bad data quality can make businesses lose their clients and potential customers, that in the end resulted in the loss of revenue and productivity. If you have incorrect information about your customers, you will not be able to effectively engage with them or share with them your latest products and activities. Moreover, using poor data quality can jeopardize your customer relationships because you will not be able to provide the right answers for them and fail to help them with their problems. This will impact your long-term relationship with your customers and affect the customer satisfaction and retention.
Prevent additional costs from bad analysis and misleading information
Inaccurate decision making derived from bad analysis and misleading information can increase business costs. Incorrect and incomplete data can mess up your predictive analysis, therefore leading you to the wrong path. Not only that, data duplication and bad data management can cost you inefficient processes because your resources will struggle to cope with bad analysis while at the same time trying to fix the errors caused by bad decision making. Finding and resolving problems on bad quality data can take up a majority of your employees’ time. This will impact their productivity, because if you have a good data quality, your team can focus on more high value tasks.
Stay in compliance and reduce susceptibility to damaged reputation
The accumulation of the impact of bad data quality, such as inefficiencies, reduced productivity, unsatisfactory support for customers can lead to compliance issues and damaged reputation. Quality issues with your data can lead to frustrated stakeholders that perceive unprofessionalism, and therefore give bad reviews. Maintaining brand image and company reputation is very important for future customers’ decision-making process, therefore it is really critical to avoid bad quality data that can contribute to poor customer experiences.
At the very core, data represents the basis of business reporting and analysis. Therefore it is very important for companies who invest in Big Data Indonesia to take a really good look at the quality of their data. Having a good quality of data can help businesses to take advantage of Big Data to make a trusted and well-informed business decision that can help you achieve success. It can also prevent all the risks caused by bad quality of data from happening. Manage your data right!
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Big data will gain more traction in 2021. According to a survey launched by the IDC Future Enterprise in early 2021, more than 43 percent of Indonesian companies listed investment on data optimization on top of their investment priority list for the year.
Big Data will make it big in this very year. Several studies revealed that there were 40 times more bytes of data in the world than there were stars in the observable universe, according to fintechnews.org.
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