Why Good Quality Data is the Key to Wise Decision-Making
Technology, competition and demands are consistently increasing in unprecedented levels and yet there hasn’t been significant innovation in the way businesses collect data in the past decade. In fact the “2016 Global CEO Outlook” published by audit, tax and advisory services firm KPMG revealed that 84 percent of CEOs are concerned about the quality of data that they are basing their decisions on.
Data often seems basic and straightforward and yet we don’t realise the critical role it plays in the day-to-day operations of a business as well as in short-term and long-term planning.
Here are the ways that good quality data can help an organisation make better decisions:
- Better reporting
Businesses that do not automate or make use of technology that improve data accuracy and integrity could have trouble moving forward. It is like using rudimentary tools in the age of the internet. A survey by data verification firm QAS Experian found 20% of companies lost customers because of data inaccuracy.
- Less budget blowouts
When companies know exactly how much they need for a project, event, regular stock of supplies, etc., they get an accurate idea of their total expenditures. This allows them more time to plan alternatives to costly options or ensure they have the sufficient financial resources ready. Businesses are then less likely to go over budget because of poor estimation and won’t be caught off-guard and unprepared for the total expenditures amount.
- Accurate tender document
A tender document is a list to suppliers detailing the products and services the company is currently in need of. It’s a written form of inquiry for information regarding these which the company believes the suppliers can provide. If the business doesn’t have precise data on what items and equipment are needed and the present condition of any they have, the tender will not be able to correctly present the company’s requirements. It would affect strategic and financial decision-making that require these information.
- Consistent format
If the organization has clear information on data, this creates consistency throughout the business, particularly with papers involved. Any missed details would later demand a revision in forms, reports and other related documents. As this is ongoing, the company will have conflicting or inconsistent records.
- More accurate planning
When you chart a course for a trip, you need to know exactly where you want to go and the geography you’ll be currently facing. The different routes, modes of transportation, and costs incurred along the way would be vital in deciding the specifics of the journey. When any of these are inaccurate, you’ll risk going in the wrong direction and wasting time as well as other resources. You’d also face more unpredicted roadblocks, affecting your overall travel. It would take you longer to reach your destination, or it’d cost you more. Worst case scenario, you’d completely miss your target. Even if travelling isn’t involved in your company’s operations, the situation illustrates the confusion and hurdles you’d find yourself in when you don’t have the right information to help you make accurate plans.
Good quality data can shape the company’s success or failure. Having accurate and reliable data is a great competitive edge that can propel other aspects of the business forward.
Whether it’s for decisions related to marketing, operations or finance, a company with access to detailed and up-to-date information would have a better chance of getting ahead of competitors and become a major player in their niche.