The Bad Data and its effect on your company

Currently, companies want to offer products and services to their customers with personalized and data-based messages, but there has been a lack of quality control over these data and Bad Data is becoming more frequent.

All customer data is important and it is essential that they are correct, because a small error or inaccuracy can have a negative effect and wrong decisions can be made since they are based on errors.

How much does Bad Data cost and what effects does it have?

In 2013 Gatner conducted an analysis of a large number of companies and concluded that the quality of the data costs about 14 million dollars a year to companies. Many organizations are giving the responsibility to organize and manage the data to the IT departments and do not take into account that the Bad Data is a problem of the company as a whole, not only of the servers or the databases.

The inaccuracies in the data affect companies in various areas such as productivity, safety and decision making that provide profitability.

What can companies do?

To avoid the problems that Bad Data entails, there are several tools that aim to standardize records and clean up. Depending on each case and the situation of the company’s data, a single data cleaning may be necessary to keep the information updated or a continuous cleaning must be carried out. In the case where no action is taken, the problem may worsen with the passage of time.

In the case of companies that have a very large volume of data, a configuration of the data cleaning tool can be made that allows that cleaning to be carried out automatically. This type of system carries out a cleaning in the terms that are marked or notify the situations in which it is necessary to supervise the quality of the data.

To choose a good solution provider that guarantees the quality of the data, you must take into account the following aspects. The proposed solution must be able to:

  • To provide an immediate impact.
  • Take advantage of both the information obtained in real time and the historical data of customers, workers, products, techniques and processes.
  • Have a good base to use new technology such as predictive analysis, forecasting and modeling.
  • Scale and adaptation based on volume, variety of data and speed.

Benefits of clean data

The clean data suppose great and diverse profits for the companies between which we can emphasize the following:

  • Great savings for the company, since more accurate decisions are made.
  • Increase in revenue, because marketing and sales actions will be based on correct data.
  • Increased credibility because the data is more reliable.
  • A much more solid base to make decisions.
  • The reports that will be elaborated will be more precise.
  • The company as a whole and each department in particular, will increase productivity and efficiency.

Companies should keep in mind that just as the cost of Bad Data can increase each year, the savings and benefits that come with clean data can also be multiplied each year.