Data impacts the critical business decisions necessary to meet your strategic objectives, goals, and planned performance.
Insight-driven organizations require a foundation of data supporting analyses, insights, modeling, measuring, and decision support. Data strategy is now a critical path dependency for organizations to survive relentless pressures on:
- Increasing revenue and value
- Managing costs and complexity
- Risk management and compliance efforts
Thriving in any industry requires new insight-drive business capabilities that will only be enabled with a focused data strategy. Your data strategy should include quality data.
Quality data is the foundation of a superior data strategy on which effective business decisions are based.
Data Quality Matters. The demand for data is on the rise, but many organizations struggle with its quality. Because disparate and disconnected data sources exist, errors and inconsistencies are common. This is particularly deceptive and pervasive with business critical data used in processes across any enterprise. Additionally, the diversity of data sources and standards for every organization has meant that there is no “one size fits all” solution.
Gartner’s, Measuring the Business Value of Data Quality, states “poor data quality is a primary reason for 40% of all business initiatives failing to achieve their targeted benefits…data quality effects overall labor productivity by as much as a 20%.” Business decisions based on unclean, poor-quality data does have a negative, sometimes devastating, effect…short term and long term.
In many organizations, these types of challenges are compounded by the complexity of the data itself, an intricate regulatory environment or organizational structures that can impede actionability. This manifests itself through:
- Business decisions based on unclean, poor-quality data
- Difficulty in capturing and gaining visibility into the true cost of initiatives and revenue leakage
- The inability to make timely, data-driven decisions
- Reduced customer experience and satisfaction
- Compliance risks
If not managed efficiently and effectively, data becomes a compounding liability for your organization.
To be a data-driven organization, your organizations’ financial future hinges on your data strategy. You have to have a strategy for how you’re going to bring the data together. What are the processes that ensure data is reliably being collected? Who holds the data, and who really understands it? And most importantly – how are you going to leverage this data asset to increase revenue, manage costs, and mitigate risks?
With effective data governance and master data management, data becomes a compounding asset…which translates to a compounding advantage over competitors that are unaware, or have chosen to ignore or delay taking action and following the proper steps to make their data an asset.
Is your data an asset or liability? How do you know? And more importantly, what’s your strategy to make it an asset?