A new study shows that a majority of organizations are wasting revenue and realizing poor customer insights by failing to optimize their data management strategy.
Experian Data Quality‘s “Create Your Ideal Data Quality Strategy” study, which examines respondents’ data-quality levels and issues, finds that 78% of U.S. companies could stand to improve their level of data management sophistication. Furthermore, the research shows that companies with a more sophisticated data management approach are rewarded with more accurate information and higher profits.
In short: The right data strategy can lead to greater success.
“The data management strategies in place in most organizations today do not match the business’s desire for data-driven insight,” Thomas Schutz, SVP and GM of Experian Data Quality, said in a statement about the findings. “Organizations still rely on one-off, departmentalized approaches that deal with data in siloes. Today’s data demands require a more centralized approach. Organizations need to invest in data management, but in the right way: by hiring the right people and focusing them on centralizing processes and installing preventative software.”
The study also finds that:
- Companies that have enjoyed a significant rise in profits over the past 12 months manage their data quality in the same fashion: with ownership resting with a single executive.
- The lion’s share (92%) of companies find some element of managing data challenging; the most common culprit being address data quality issues before they have a negative effect on business.
- Eighty-eight percent of companies implement a data-quality tool, but the average U.S. organization still claims that one third of its data is inaccurate.
