The Data Differentiator - How Improving Data Quality Improves Business
This report from Forbes Insights looks at how improving data quality is a critical differentiator to business success.
As businesses attempt to prepare for transformational technologies like autonomous vehicles, artificial intelligence and the Internet of Things (IoT), many find themselves grappling with the complexities of data and analytics. The role data plays in enabling these future technologies is critical—but one that will be undermined if businesses do not make data quality a priority.
Executive leadership recognizes the need to focus on data. In fact, according to the Forbes Insights and KPMG “2016 Global CEO Outlook,” data and analytics capability ranks the highest of the top five investment priorities for CEOs today. Yet despite this, faith in the data businesses rely upon is low: The report also found that 84% of CEOs are concerned about the quality of the data they’re basing their decisions on.
Interviews with executives and analysts suggest that confidence in data may be low for various reasons, including silos of information, difficulty in securing executive buy-in, not to mention the sheer quantity of legacy data a company may possess. However, regardless of the reasons for hesitancy on the data front, the fast pace of technological change and the competitive threat mean that organizations must quickly scale up capacity and integrate new sources of data—including unstructured sources like social media and messaging—as well as learn how to use the data they generate internally to improve product and service offerings, all while improving the quality of data accumulated over the life of the business.
The challenges posed by improving data quality can be daunting and obscure the benefits and possibilities that good-quality data enables, but the costs of doing nothing are high. Gartner measures the average financial impact of poor data on businesses at $9.7 million per year. These costs, however, are not solely financial; businesses can see loss of reputation, missed opportunities and higher-risk decision making as a result of low confidence in data.
Download the full Forbes Insights report now to learn more how data quality is the data differentiator, including how to bring outside data in and choose a data partner.