Data quality management is responsible for all the solid initiatives businesses make on a daily basis. After all, making sound decisions rests on the reliability of the data. Making an informed business choice spells the difference between success and failure. Data quality management is of primary importance because it safeguards the data, helping stakeholders secure profit by making tangible business plans turn into reality.
What is Data Quality?
Data quality refers to the health of the data, whether it is capable of performing and serving its purpose under its given context. Data must fulfill all the following parameters to be considered a reliable source of information: accuracy, timeliness, consistency, relevance, completeness, and validity. With big data churned every single day by all businesses, safe data collection procedures are critical and must be implemented. Here are helpful tidbits on what business owners should know about data management:
Data Integrity and Quality
What is data quality but data that is highly reliable and consistent. Utilizing management techniques and platforms can help in securing the data collected. This means that the fruits of your data analytic efforts have integrity and quality, making them completely useful in the organization, from making daily mundane decisions to big impactful ones that can change the company’s direction. Tools are in place to help decrease mistakes, such as automating the collection of data as opposed to manual encoding, which is prone to human error. Another example, data management lessens the risk of duplicate entries. These duplications are bad for business because they might make you overestimate your decisions, which is especially harmful when you are placing bulk orders to be sold. Nothing is more important that data integrity and quality because all decisions hinge on this vital pieces of information.
Provides a Business Framework
The thing about inaccurate, outdated, and unreliable data is that it can lead to costly mistakes, fatal errors, and massive missteps that impact the financial capacity of any business. Providing data quality tools for your staff establishes a framework that all the employees in various departments can follow as a guide or blue print, so they can keep from making the same mistakes again. Good handling of data builds a foundation for reliable information that can give everyone a clear grasp of the company’s direction. With this data management tools and systems in place, it enforces everyone to be more vigilant when handling data, which assures quality of data that stakeholders can actually use in order to see tangible results.
Minimizes the Costs
Updated data that’s accurate and consistent provide a clear picture of the company’s daily operations. Having this information can help stakeholders see what they’re doing right and where they are going wrong. Costly errors like oversight, wrong encoding of information, losing orders, and unnecessary spending can all be tracked. Knowing this can help bosses minimize losses by addressing these faulty practices. It also keeps employees on their toes, knowing that their moves are being traced and monitored. Reducing these inaccuracies lead to less loss of time, effort, and money. Profit maximization is boosted by data management because it minimizes the mistakes.
Helps Meet Compliance and Risk Objectives
Good management of data with the right set of tools helps maximize your data analytics efforts. On top of that, access to clean and safe data ensure that the stakeholders can easily asses their staff for compliance with certain regulations that the company has set up. Quality data also has the capacity to define risks and address those risks before stakeholders make their big decisions. Data management tools allow the various teams to confidently reach their goals at a faster rate, knowing they have done their best to curtail the risks. In this digital age, management of massive amounts of data is a crucial factor in determining a company’s success.