Does Your Company’s Data Strategy Solve Your Unforeseen Risks
Approximately more than 50% of marketers “say ‘lack of data quality/completeness’ is the most challenging obstacle to success,” as stated in the Ascend2 Done-Drive Marketing Survey 2014.
Bad quality data makes it difficult for senior management to make governance decisions. Among the problems is the increase of the companies’ “risk of non-compliance and regulatory penalties” by 52% and a 51% chance of a decline in customer loyalty. These were reported by the data verification firm, Experian in their 2017 Global Data Management Benchmark Report.
When the leaders of an enterprise are blinded by wrong information, how would people under them be able to take the right steps for the company? But while businesses now incorporate data strategies, there’s also a need to evaluate the effectiveness of these and what problems they possibly impose.
When’s a data strategy bad?
A good data strategy takes into account the entire process data goes through with criteria and metrics to ensure quality at every stage. It not only involves the storage of data but also how the data was identified as relevant, how it was acquired to how it was analyzed and used by the company.
Transforming Data With Intelligence, a data training company and online source, cites several facts related to the data as necessary for it to be properly utilised. First is a description of the type of data that should be collected and how long it can be kept for it to be considered relevant. Next is where it should be stored.
This repository should be well-guarded with the right security to ensure privacy and avoid data theft. What data should be displayed? Which requires restricted access? What channels can these data be accessed from? An effective data strategy should answer these questions and more.
What are the consequences or the risks of bad data?
Inaccurate, outdated, incomplete or simply misunderstood data can negatively affect the different areas of the business. Choices based on assumptions or the wrong details could result “in [higher] consumption of resources, [higher] maintenance costs...lower customer satisfaction” and the list by Business2Community, the open business community, goes on.
All of these ultimately lead to loss in revenue. Continued decrease in sales would put the health of the entire business in jeopardy. For long-term growth and success, a sound data strategy needs to be put in place. Yet it’s easier said than done.
What are the challenges of creating a good data strategy?
While there’s a consensus in the business world of the importance of high-quality data, it’s difficult to quantify its return on investment (ROI). Another online big data information source, Datafloq, recommends a culture change in order to unify data warehouses, ensure privacy, integrate IT smoothly into the various departments and accurately determine its benefits in monetary terms.
As more heads of companies recognise the need for better information, it’ll be interesting to see how the management of big data and businesses evolve in the near future. Understanding what facts and figures your company should use and how to leverage the information today would put you at a headstart.