The document discusses the business impact of poor data quality, highlighting issues such as reduced customer satisfaction, inaccurate reporting, and increased operational risk. It emphasizes that organizations face significant challenges due to information overload and data integrity problems. The importance of understanding and managing data credibility is also addressed as a means to enhance competitive advantage.

1. Business Impact of Bad Data
Jaydeep Deshpande
Marketing Manager
SAS Institute (India) Pvt. Ltd.
Copyright © 2010 SAS Institute Inc. All rights reserved.

2. Jaydeep Jaydeep
Deshpande Girish
Deshpande
Jaideep Jagdeep Jaydeep
Deshpande Deshpande Despande
Jaydeep JG
Deshpandey Deshpande
• Is this the same person?
• Are these different people?
• How sure are you?
2
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3. Global Challenge
“Strategies of yesterday may no longer work today.”
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4. Information Explosion
4
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5. Information Revolution
Digital Information Doubling Rate
2005 1100 days
5
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6. Information Revolution
Digital Information Doubling Rate
2005 1100 days
2007 11 months
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7. Information Revolution
Digital Information Doubling Rate
2005 1100 days
2007 11 months
2011 11 hours
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8. Information Revolution
“The data deluge is such that human
beings can no longer be expected to
spot patterns in the data.”
“Nor can they grasp the size and
complexity of one database and see
how it relates to another.”
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9. Trend: Information Overload
Study: 1009 Managers (US & UK $500M+)
42% “Too much information”
44% “Other departments not forthcoming with data”
39% “Can’t figure out which information is current”
38% “Need to weed out duplicate information”
21% “Don’t understand the value of the information”
`
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10. Data That is Most Suspect
What types of data are most susceptible to quality problems in your organization ?
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11. Questioning the Data
“What happened?”
“Where exactly is the problem?”
“What if these trends continue?”
“How many, how often, where?”
“What’s the best that can happen?”
“What will happen next?”
“What actions are needed?”
“Why is this happening?” 11
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12. Business Impacts of Poor Data Quality
• Reduced customer satisfaction
• Inaccurate or non-existent reporting (sales, profitability,
inventory)
• Reduced productivity
• Excess inventory or stock outs
• Inaccurate billing and invoicing
• Inaccurate margins on products
• Incorrect commission payments
• Delays in product launch (inability to ship or sell at launch)
• Lost sales (inability to ship or sell)
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13. What is Poor Data Costing My
Business?
Which data integrity issues are the highest impact from a
business perspective (Revenue, costs, risk?)
– Revenue:
• What is the loss from failed business transactions due data issues?
• How quickly can we respond to business opportunities?
– Costs:
• How has throughput suffered due to errors?
• What percentage of time has been lost in scrap and re-work?
– Risk:
• How is poor data increasing risk? (Compliance, project failure, etc.)
• Can your organization effectively perform mergers and acquisitions (M&A)?
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14. What Makes Data Credible?
Accuracy • Is it realistic or believable?
Integrity • Is it structured and managed?
• Is it consistently defined and
Consistency maintained?
• Is the data valid based on business
Validity or industry rules and standards?
• Is it from known sources and in the
Reliability form that the users understand?
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15. Data is the strongest competitive weapon in
the hands of the organization, provided it is
understood correctly & used appropriately
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16. Is data quality impacting your business
performance?
Jaydeep
Deshpande Jaydeep Girish
Deshpande
Jagdeep Imagine the amount, organizations
Jaideep Deshpande Deshpande may spend if they reach out to the
same person, due to poor data
quality!
Jaydeep Deshpandey Jaydeep Despande
J G Deshpande
Lets untangle… 16
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17. Copyright © 2010 SAS Institute Inc. All rights reserved.