One of the inevitable products of any business out there is data. What is more important it has tendency to exponentially pile up, especially during business growth and expansion. Data management is also a very old business category. Managers have been struggling with data managements for ages now. Juggling daily tasks while trying to organize company’s data in an effective way can be hard at times, especially when there is a big chunk of data that has to be organized.
There is one thing that is common for many companies – they are having a difficulty justifying the costs of any initiatives that are related to data quality and management. In my opinion, this is because the benefits of data quality, when it is managed by a data professional, are still not fully recognized. I have put together this list in order to bring you closer to how valuable data quality is and what potential benefits it can offer companies.
Data management is in powerful indirect relation with the company’s revenue. It all comes down to the degree of data usability which is a salvageable result of data quality. If a company’s data is well organized, able to be used to generate in-depth reports and easily accessible by employees, the people who rely on it for work will be way more productive. And, productivity has a direct impact on revenue.
Furthermore, data quality is measured by how easily it can be processed and how consistent it is across multiple sources, along with how concisely it is presented. This potential was recognized by entrepreneurs who decided to launch businesses that specialize in data entry and data management, making it more usable and insightful, thus increasing the productivity of employees across the business.
Improved Return on Equity
As you may already know, ROE is a business metric that indicates the company’s ability to grow. Experts state that the defining characteristics of data quality are the age of the entries, scope, accuracy and timeliness. If one makes sure that the company’s data has quality, it can be used to design and strategize business growth.
The key factor of data quality is data entry. This is why this step requires a serious approach that will prevent any data errors right at the start and during any updates. Having all the entries categorized and updated is what allows data to be used for statistical correlations. This manipulation of data provides valuable and actionable insights which are needed for making serious business decisions. These insights can also become a very powerful tool in the hands of the company’s marketing team.
Improved Return on Assets
Another salvageable aspect of data quality is data intelligence, because one simply cannot get accurate data predictions when you have old entries that are not precise while the data sample is very small. Now that we have established that data quality is one thing that makes data intelligence eligible, let’s see how companies benefit from it.
Data intelligence is used to improve ROA – the organization’s ability to utilize resources in order to increase income. This is very important for businesses that have a large customer base. The most valuable data in this case can be collected via customer surveys. Improving the quality of this data can provide a company with a valuable answer to what is important to its customers. And this is of the utmost importance for one to thrive in a customer-centric marketing environment of today.
Data quality will ensure that any predictions, analysis and recommendations are also accurate and valuable. Recommendations in this case can have a direct impact on increasing profits, especially if they target improvements in the sales department and new product design procedures.
Well organized and managed data is crucial for any business success. There are two major issues that are a direct result of bad data management – hidden costs in error correction and missed profit opportunities. The liability of data can also impact new projects causing the businesses to hold back from them.