{"id":12239,"date":"2023-06-09T07:00:00","date_gmt":"2023-06-09T15:00:00","guid":{"rendered":"https:\/\/formtek.com\/blog\/?p=12239"},"modified":"2022-08-25T11:45:56","modified_gmt":"2022-08-25T19:45:56","slug":"data-quality-the-cost-of-bad-data","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/data-quality-the-cost-of-bad-data\/","title":{"rendered":"Data Quality: The Cost of Bad Data"},"content":{"rendered":"\n

It’s too easy to get data wrong. Bad data is a costly problem. Poor data quality (DQ) can lead to bad outcomes and dire consequences for businesses.<\/p>\n\n\n\n

Analysts are in agreement that poor data costs companies a lot. A study by IBM<\/a> found that US businesses lost $3.1 trillion annually because of bad data quality. Gartner estimated<\/a> an average annual cost of $12.9 million for poor data quality. Ovum estimates<\/a> that the cost could be as high as 30 percent of the revenue for a business.<\/p>\n\n\n\n

Why are data errors expensive?<\/p>\n\n\n\n

Melody Chien<\/a>, Senior Director Analyst at Gartner, said that<\/a> \u201cdata quality is directly linked to the quality of decision making. Good quality data provides better leads, a better understanding of customers, and better customer relationships. Data quality is a competitive advantage that D&A leaders need to improve upon continuously.”<\/p>\n\n\n

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\"\"<\/a>
Thomas Redman, HBR: Bad Data Costs the US $3 Trillion Per Year<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n

Correcting data errors is expensive. Thomas Redman in an HBR article calls the correction process a <\/a>“hidden data factory.” For example, a study by Melissa <\/a>estimates that 20 percent of contact information collected by companies is not correct. Fixing contact information early on follows a 1-10-100 rule, according to Melissa. Data can be checked on a first pass by comparing it to a database — that costs about $1 per record. An additional $10 is needed to fix records that weren’t found in the first correction pass, and $100 is the cost attributed to misplaced shipments, returned mail, and lost opportunities due to incorrect data.<\/p>\n\n\n

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\"\"<\/a>
From Gartner: 12 Actions to Improve Your Data Quality<\/a><\/figcaption><\/figure>\n<\/div>
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It’s too easy to get data wrong. Bad data is a costly problem. Poor data quality (DQ) can lead to bad outcomes and dire consequences for businesses. Analysts are in agreement that poor data costs companies a lot. A study…<\/span><\/p>\n

Read more ›<\/a><\/div>\n

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