The unseen cost of poor data

The unseen cost of poor data

Do you know the unseen cost of poor data in your organisation?

Accurate and properly managed data allows companies to make quick decisions, switch gears and fix problems promptly. But what happens if your data is wrong or not managed appropriately? Data from inaccurate sources or managed poorly can lead to misjudgment in decision-making and cause problems for any company.

The biggest challenge companies face today is navigating the sea of information to find the most relevant data and then figuring out how to use it.

Improperly stored data can therefore be detrimental for any business department. For instance, in the case of a shipping department, if data is not stored and managed effectively, shipping may be delayed or even prevented altogether. The cost of the intervention to remedy these issues can however be quite high depending on the type of business.

We are here to investigate the issues of poorly managed data, the benefits of data governance, and how to manage data appropriately and thus enhance the productivity of any business. So, without any further delay, let’s get started.

Drawbacks of Poorly Managed Data

Improper data storage is one of the leading causes of loss of information in businesses which inevitably affects the productivity of any business. However, poorly managed data can be very costly for the companies and can even result in business failures.

Poorly managed data can lead to harmful ramifications, such as loss of profit, lack of customer trust, and even legal trouble. Let’s take the example of an eCommerce store. You have customer, product, and order data, and you will also have your data of sales, customer behaviour, customer service, and so on. Each of these systems has its data to be integrated with other systems. Lack of data integration between systems leads to late shipments, customer dissatisfaction, and increased costs.

Let’s discuss a few other drawbacks of poor data management.

1.     Poor Decision Making

The most drastic impact of poorly managed data is that it leads to poor decisions. The managers always make decisions based on the data. Data managed poorly can lead to poor decision-making, drastically affecting your business’s output. That’s why organisations need to pay significant importance to data management.

2.     Reduces Business Efficiency

Poor data management reduces your business efficiencies, particularly when a business process is dependent on data from reports to ordering products. These inefficiencies often lead to expensive and time-consuming efforts to validate data and fix data errors instead of focusing on other tasks.

3.     Loss of Revenue

There is no doubt that poor data management leads to a loss of revenue. Most communications fail to convert because of incorrectly and poorly managed underlying customer data. The organisation has to hire data specialists who will fix the errors in data. All this leads to a massive loss of revenue for the organisation.

4.     Wastage of Time

Time is a crucial factor and plays a vital role in the success of any organisation. All those data records which need checking manually consume a lot of your employees’ time. This time continues to increase when the errors in the database grow with time. So, to make sure that your employees spend their maximum time enhancing the productivity of your business, you have to ensure that they are spending minimal time in eliminating data errors.

5.     Loss of Opportunities

The right step taken at the right time can lead to an opportunity. If your employees are constantly focusing on correcting data manually or are always busy locating errors in data, your organisation will end up losing plenty of potential opportunities.

6.     Destroys an Organizations Reputation

Making assumptions about data accuracy leads to business inefficiencies, reduced productivity, poor customer support, compliance issues, and so on and so forth. These factors adversely affect customer support, which destroys your brand’s reputation.

These unsatisfied customers won’t hesitate to express their feelings on social media and other platforms, thus negatively impacting your brand reputation. That’s why it is essential to pay significant importance to managing data appropriately.

Importance of Data Management

The right tools and processes will therefore ensure the correct data used supports a strong data governance framework. It also means the right people access it at the right time. It is possible to eliminate the problems of poorly managed data by taking proper steps. Proper integration of your data provides a better and more efficient customer experience.

In short, data governance is all about setting up a data management process. Companies must pay significant importance to organise their data to be easily accessed and monitored comfortably. This process ensures that your data is accurate, up to date and used in the right way.

The following section will discuss data governance, the importance of data governance/data management systems, and why you should hire a professional company to manage data.

What is Data Governance?

The term Data governance describes any formal process a business employs to control data collection, usage, and management. Companies and organisations however increasingly use massive data to increase their profitability and efficiency.

Data governance is more than just the technical aspect. A lot of work goes into it, and it’s not just about using the right software. It’s about having the right attitude towards data and knowing what information you need to run your business.

Data governance, therefore, allows you to sort, search and analyse your data quickly. It helps you understand your data infrastructure and makes it easier to improve your systems.

Why Data Management System?

Data governance is much more than securing access to your data. A data governance strategy is a set of processes, policies, models, and tools that enable your business to achieve its objectives in an increasingly data-driven environment.

Let’s discuss a few salient features or benefits of data governance or data management system.

  • Data governance includes establishing policies and procedures regarding managing and using data.
  • It ensures that data available is accurate and can be accessed and used in the right ways by the right people at the right time.
  • It helps you construct an environment that supports data-driven decision-making, enables collaboration, and supports compliance.
  • Good data governance helps minimise the risks of data breaches and improve data quality.
  • It makes sure that the data is used only for its intended purpose and in a way that doesn’t hurt the organisation.
  • It helps prevent data corruption and poor data quality. Data governance can be a difficult task to manage.
  • It requires the right strategy and lots of work to manage the data effectively.
  • In addition to ensuring data integrity, it provides legal, ethical, and safe data management.
  • Data governance can improve data quality and data usage with the right plan.

Best Data Management Service Company

In today’s ‘big data’ world, however, it is imperative to analyse the information you receive. Data visualisation is a huge help in this matter. Syngatium makes it easy for business users to gain insights into their business systems. Syngatium helps businesses to gain valuable insights from their data without the cost and hassle of a consultant.

The analytics solution allows you to produce professional-looking reports in minutes. It eliminates the need for your team to create manual reports.

This data management company can provide all your data needs, including integration, analytics, and machine learning solutions, as well as data visualisation to give valuable insights. Syngatium offers a wide range of data solutions and helps our clients gain complete control over their data. Our data management services are highly cost-effective and scalable.

We at Syngatium analyse your data to give you the knowledge to make better decisions. We will revolutionise how you create reports, presentations, and much more.

Conclusion

Data management enables businesses to gain a competitive edge over their competitors by allowing organisations to make data-driven decisions and tailor their products and services accordingly. Appropriately managed data analytics is key to big data success.

The specific policies and procedures may differ from business to business. Still, the overall goal is the same, i.e., ensuring that data is collected, used, and protected in a manner consistent with the business’s mission, vision, and values to accomplish the business’s goals.