Selecting an ERP System for the Modern Business World
Business leaders have always had to face the winds of change but 2023 brings combined challenges, the likes most have not seen in their lifetimes...
In today's data-driven landscape, organizations must recognize the critical importance of data health – the extent to which an organization's data effectively supports its business objectives.
Data health is not merely a technical consideration; it is a strategic imperative for organizations that drives informed decision-making, operational efficiency, and enhanced customer experiences.
It is essential for organizations to prioritize and invest in measuring and maintaining the health of their data.
“Assessing the health of your company’s data is crucial. Poor data quality can have a significant impact on your business, resulting in inefficient processes and lost revenue,” wrote AI researcher Vijay Kanade for Spiceworks.
Data observability company Monte Carlo says that data engineers spend upwards of 40 percent of their time – or 120 hours per week – dealing with bad data.
“Poor data quality costs companies a tremendous amount of money, impacting over 26 percent of their revenue according to a recent survey by Wakefield Research,” said Monte Carlo in October.
The importance of data health is only growing as Monte Carlo updated its research earlier this month in its “The Annual State of Data Quality Survey” and found that the average percentage of impacted revenue jumped to 31 percent, up from 26 percent in 2022.
“Additionally, an astounding 74 percent reported business stakeholders to identify [poor data quality] issues first, “all or most of the time,” up from 47 percent in 2022,” said Monte Carlo. “These findings suggest data quality remains among the biggest problems facing data teams, with bad data having more severe repercussions on an organization’s revenue and data trust than in years prior.”
Big data company Talend defines data health as how well an organization’s data supports its business objectives.
“Data is healthy if it is easily discoverable, understandable, and of value to the people that need to use it, and these characteristics are sustained throughout its lifecycle,” explains Talend. “You’ll know that your organization’s data is healthy when you can prove that it’s valid, complete, and of sufficient quality to produce analytics that decision-makers can feel comfortable relying on for business decisions.”
To establish and maintain data health, organizations should focus on the following key elements:
Data Quality:
Data Governance:
Data Integration:
Talend says it all comes down to data agility, data culture, and data trust for organization-wide data health.
Maintaining data health for an organization is a complex task as multiple internal and external factors create a shifting digital landscape.
Some of the factors affecting data health include:
As we said before, maintaining good data health offers numerous advantages for an organization, including:
Talend says that companies that can manage their data health can better take advantage of initiatives such as enabling analytics, modernizing cloud and data, establishing data excellence, and accelerating operational data.
“Every initiative has an associated business outcome: increased revenue, reduced costs, or mitigated risk,” says Talend.
Just as individuals monitor their personal health by using measurements such as blood pressure readings, body weight measurement, and cholesterol numbers, organizations must measure their data health by using a set of metrics.
A good starting point is the “Six Core Data Quality Dimensions” as defined by the Data Management Association of the UK:
We can add to this base with additional metrics to measure data health such as:
Periodic readings of these 12 measurements can provide a complete picture of your organization's data health.
Given the importance of data health, you would think it would be a top priority, but Talend’s data health surveys have found that less than half of executives are certain that their company even uses data quality standards.
Even more shocking, a third of executives said there were no documented standards in place, yet 95 percent of those surveyed saw a need for universal, cross-industry data quality standards.
Neglecting data health can have significant negative consequences for organizations, such as:
In a digital-first world, data health has emerged as a fundamental requirement for organizations striving for success and sustainability.
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