While a growing number of organizations are undertaking data initiatives, sufficient data quality remains elusive for most, and that is impacting the ability to meet project goals or customer needs.
That is one of the key findings of a new study by Experian Data Quality, a leading provider of data quality software and services. In its new research study, The 2016 global data management benchmark report, Experian finds that while the majority of organizations feel data usage is evolving to support significant business outcomes -- such as customer experience, decision making, and governance -- the data still is not at the quality level required to achieve these goals.
On average, organizations believe 23 percent of their data is inaccurate, and they are seeing a high number of consequences from bad data, the study says.
Further, 75 percent of organizations believe that inaccurate data is undermining their ability to provide an excellent customer experience. The study indicates that the level of inaccurate data mainly stems from internal challenges. Chief among them: “organizations lack the knowledge, skills and human resources around data to manage and govern it properly.”
“Businesses are evolving to make more intelligent decisions based on data, but they haven’t updated their data management processes to ensure they’re using high-quality information,” said Thomas Schutz, senior vice president and general manager for Experian Data Quality.
“Organizations still are struggling to find data issues and correct them across the business,” Schutz said. “While some of this is certainly due to a higher volume of more diverse data types, many of these organizational struggles are internal. For example, a business may lack a central data owner or data staff. For data to fully support the business’ strategic needs, data management strategies need to catch up to data usage. Ultimately, that transformation starts with creating a culture around data.”
The study also found that:
84 percent state that data is an integral part of forming a business strategy.
75 percent of businesses believe their organization is more likely to quantify and measure data department by department, rather than across the organization as a whole.
75 percent find it difficult to predict when and where the next data challenge will arise.
The full study, The 2016 global data management benchmark report from Experian Data Quality, can be found here.