As many organizations look to turn data into actionable insight, a high degree of inaccurate information is limiting data insight and negatively impacting the bottom line. This is according to a new Experian Data Quality released today.
On average, U.S. organizations believe 32 percent of their data is inaccurate, a 28 percent increase over last year’s figure of 25 percent. This high degree of inaccurate information causes 91 percent of respondents to believe revenue is affected by inaccurate data in terms of wasted resources, lost productivity, or wasted marketing and communications spend.
This high level of inaccurate data comes despite the fact that organizations are investing in data quality. Eighty-eight percent of global companies have a data quality solution in place today and if we look ahead to the next 12 months, we see that 84 percent of companies plan to make some sort of data quality solution a priority for their business to implement for the first time or to improve upon.
However, this investment is often segmented across various departments across the organization and most lack a centralized, complete data management strategy. Today we see that just one in four organizations has a sophisticated approach to data management. That lack of sophistication is driving up levels of inaccuracy and hurting the bottom line.
“The cost of poor data quality is hitting home in boardrooms across the globe; most businesses, however, are perplexed because they actually are investing in data quality tools,” said Thomas Schutz, senior vice president and general manager for Experian Data Quality. “While data quality technology is certainly a requirement, many businesses have neglected to focus on staff and organizational structure. Very few organizations have appointed a centralized manager for data quality and most lack sophistication in their data management methods. Organizations need to do more than buy a new piece of software; they need to make data quality an organizational priority and put the right team in place to manage that complex effort.”
The study also found that:
- Ninety-seven percent of U.S. companies feel driven to turn data into insight
- Ninety percent of U.S. companies have some sort of data quality solution in place today
- More companies who have enjoyed a significant increase in profits in the last 12 months manage their data quality centrally
- On average, U.S. respondents feel 27 percent of their revenue is wasted due to inaccurate and incomplete customer or prospect data
To obtain a copy of The data quality benchmark report from Experian Data Quality, click here.