A Case for Cost & Benefits
Leaders tend to shy away from addressing data problems in their organizations. Their inattention stems from either a lack of awareness of the issues or hollow confidence placed on their IT departments, without proper resources and time being allocated. Peeling back the layers of the data cleansing issue reveals multitudes of errors, which includes low levels of knowledge and inconsistencies in practice. As a result, leaders are unaware of the cost in producing accurate data or become very reluctant to commit adequate resources to resolve the issues. A defensible cost benefit analysis will highlight the adverse effects of data quality problems and the economic benefits of launching an effective program.
The negative impact of poor data quality has been well documented. It is clear that poor data quality can result in a significant drop in competitiveness, lower customer satisfaction and increased costs. Some tend to minimalize the issue as part of doing business in the digital age, while others find themselves intimidated by the scope of a project that initially feels too daunting to launch. Whatever the situation may be, ignoring the poor data quality issues in an organization will continue to compound the problems, resulting in lower productivity and higher operating costs. A thorough and methodical approach to resolving poor data quality in an organization will be worth the time and money spent.
Whether your plan calls for an internal process or contracting with an outside firm to conduct a thorough analysis, you have taken the first step to a long range solution with benefits that can easily be quantified. Costs to resolve poor data quality arise during this process, but are clearly overshadowed by the tangible benefits identified from a thoughtful analysis. As with any other business practice and performance improvement initiative, setting benchmarks to measure success is critical. These benchmarks will become critical when making financial decisions that surely will require attention. Treat your approach as you would any other capital funding project, with all due diligence and thoughtfulness you would regularly apply within your organization. When assessing the economic tradeoffs, remember to apply a basic formula: Value = Benefits – Costs.
When you begin the journey to address your need for data cleansing software in your organization, Data Ladder is your partner and analytical expert. We can bring simplicity and clarity to an otherwise muddled and complicated project. Have confidence that Data Ladder will help you resolve your data quality issues and measurably improve quality and financial performance. Contact us for more information and to get your free trial.