Known fact, the quality of your data translates directly into your business performance and profitability. If your data is timely and accurate across your enterprise, you’re in a great position to operate at high levels of speed, precision and efficiency. If your supply chain is synchronized, your financials will be spot-on. If your customer data is relevant and accurate, you’ll be equipped to attract and retain customers.
With all these great benefits that come from having quality data, why are organizations still allowing themselves to suffer from poor data quality? In a recent research released by Iron Mountain and PwC, “three in four businesses are either constrained by legacy, culture or regulatory data issues or simply lack any understanding of the potential value held by their data”. The biggest issue is the difficulty of extracting value from their data, which is typically due to data quality problems. So here are the top 3 reasons why you need a data quality solution:
1) Address Critical Business Interruptions
Business interruptions can occur in any area of an organization and cause ripple effects of excessive time and cost. This includes production delays, cost overruns, incorrect customer orders and more, that have root causes pointing to inaccurate or outdated information hidden within dozens of functional areas.
Bad data can result from differing definitions of common terminology across applications, duplicate entries and even various renderings of the same information - for example, a customer referred to as Myers could be entered into your system as Myers, MyersFood or Myers Food US.
The first step in determining if the state of your data supports the business outcomes you want to achieve is by employing a thorough data assessment to pinpoint gaps and disconnects in financial and operational processes and to quantify impact and risk. Most importantly, this assessment will be the foundation of your strategic program for data governance going forward.
2) Keep Up with the Pace of Business Change
Globalization, competitive pressures and escalating customer expectations are prompting companies to focus resources on improving their speed and agility to cope with change faster than ever. At the same time, the data organizations have at their disposal is also on the rise.
In a TDWI study, IT and business leaders ranked real-time data quality as the second-fastest growing discipline in data management. So how do you address information that appears and changes at cycles faster than your systems can perform? If you’re an organization going through a merger or acquisition, how are you rationalizing and harmonizing common information across siloed systems?
Take an automated approach with a data quality solution that can migrate data from hundreds of source systems and provide a global, consolidated view across not just projects, but across multiple processes, resources and systems.
3) Confidently Manage Risk and Compliance
Have your executives talked to you about strengthening your risk management and compliance? They probably have because it is very high on every executive’s priority list. In virtually every industry, organizations contend with increasingly complex regulations at the state, national and global level, with Sarbanes-Oxley, HIPAA and FDA being among the most widely recognized.
Non-compliance can lead to a high-profile blunder and millions of dollars in lost revenue, punitive fines and brand damage. It also can leave many organizations exposed to making best-guess decisions. For instance, a Deloitte survey found that in the financial sector, 79 percent of risk professionals are somewhat to very concerned over the quality of data on which their institutions base their decisions.
With a data quality solution, by setting up alerts, you can be aware of anomalies and supply your organization with a framework for ongoing monitoring, and management can significantly strengthen lines such as human capital management, as well as compliance and risk management programs.
Data quality solutions can rapidly identify and remediate your organization’s data quality issues, starting with a data assessment that will provide you with data quality visibility in a very short timeframe. If these three reasons aren’t enough for you to start implementing a data quality solution, download this free eBook on the Top 5 Reasons to Implement a Data Quality Solution and reconsider your implementation.