11 benefits of achieving high data quality (including confidence, scalability & consistency)
We have persistently shared content related to data quality – discussing everything from the cost of poor data quality to data quality management – but we have yet to properly touch on the benefits of achieving high data quality. So let’s get started. What are the benefits, i.e. why should organizations keep their quality in check? Keep reading to explore 11 individual advantages.
1. Data confidence
As our friend over at QlikView CookBook put it so eloquently:
“Confidence closes that gap between the CEO and the person who produced the data.”
This is hugely important. With high data quality comes trust and understanding in the data. While this might be something that is already present within the team that has produced and validated the data, this is not always the case for everyone within an organization. For instance, 84% of CEOs worry about the quality of the data within their organizations (KPMG, 2016), i.e. they are not confident in the data. By implementing a data quality infrastructure, organizations are able to spread confidence throughout the company, allowing everyone to feel secure in the insights that are being derived from the data.
Second up, we have scalability. With a quality infrastructure in place, it becomes possible for organizations to scale up while still ensuring that the data remains trustworthy and reliable. Furthermore, if said infrastructure operates automatically, it also becomes possible to scale up without necessarily increasing manpower. To read more about this, visit our page Embrace Scalability.
3. Data consistency
This one sounds a lot more complicated than it is. Basically, with a strong infrastructure in place – it becomes simple to ensure that data is consistent throughout the entire organization. You’ll be able to answer yes to all of the following questions:
- Is everyone looking at the same sales figures?
- Is everyone receiving congruent reports?
- Is data harmonious throughout all of your different branches, store locations, etc.?
While this might be more crucial for larger organizations, it is still hugely beneficial regardless of size.
Another benefit is related to the increased readiness that your organization will see. You will be more ready if and when something goes wrong (i.e. doesn’t adhere to your quality standards) because you have an infrastructure in place scanning your solution for outliers or inconsistencies. While you can never quite ensure a completely flawless business intelligence solution, having a system in place that allows you to detect outliers or inconsistencies early will enable you to minimize the cost of such errors.
5. Save costs
This ties in neatly with the next benefit- saving costs. It’s not very complex – by maintaining high quality you no longer have to pay the price that comes with poor quality. Mistakes will be detected early and business decisions will be based on trustworthy data.
6. Save time
In line with this, you will also be able to save heaps of time. No more backtracking because of mistakes, no more double-checking your results, no more wasting time due to bad data. Again, automating your data quality infrastructure will further reduce the time needed to maintain high-quality data.
Decreased costs + decreased time needed = increased productivity. Pretty self-explanatory.
8. Informed decision making
As a result of achieving high data quality, you will also be able to make more informed decisions because the data that is backing up your business strategy has been properly vetted.
Another huge benefit of knowing that your data is following your set quality guidelines is that it will be much simpler to comply with data regulations. For example, when it comes to the GDPR, knowing that the personal data stored within your organization is consistent and correct is half the battle. To find out more about this, check out “The Importance Of Data Quality — Good, Bad Or Ugly“.
10. Customer satisfaction
Benefits of high data quality extend beyond your organization and can also be reaped by your partners and/or customers. By maintaining control over the data that you are storing, you are able to ensure customers that their personal data is being handled properly while also offering better services as a result of increased productivity and reduced operational costs.
11. Brand reputation
Finally, bad data quality can hugely tarnish your brand reputation. Whether it be in the form of a data leak or whether your organization is unable to comply with increased data regulations – it’s never good. So, while protecting your brand shouldn’t be your only reason for maintaining high data quality, it does serve as a fantastic side-effect.
So there you go – 11 benefits of achieving high data quality. We hope that this list will further help you understand how important it is to have a strong data quality strategy in place!