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DQ Blog Data Quality What are the affects of poor data quality on a business?

What are the affects of poor data quality on a business?

Martin Doyle October 5th, 2011 Data Quality

 It’s basically waste:

 Wasted time

 Wasted money

 Wasted face (brand)

These three wastes (time, money and face) split into:

Strategic (Gain based) and Operational (Pain based) waste:

Strategic waste – Those bad decisions – often made with a high level of certainty – which mean you don’t win the prize!

  • You don’t know your customer
  • You miss targeting the correct market segments
  • You miss strategic opportunities to win more business and generate more profit.

This invisible waste is very damaging and doesn’t typically get measured, and as we know if you can’t measure it you can’t manage it!

Operational waste – we all know the best way to make money is to stop wasting it!

Operational defects are unnecessary, they are the data capture errors and omissions leading to downstream scrap and re-work which if not rectified ultimately loops right back to bad decisions.

You could controversially say that anyone in the business who’s aware they are creating downstream data quality issues might be accused of abdication of responsibility and is inadvertently stealing from the shareholders?

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Written by Martin Doyle

Martin is CEO and founder of DQ Global, a Data Quality Software company based in the UK. With an engineering background, Martin previously ran a CRM Software business. He has gained a wealth of knowledge and experience over the years and has established himself as a Data Quality Improvement Evangelist and an industry expert.