INACCURATE DATA

The Problem Organizations Face with Inaccurate Data or Reporting

The Problem Organizations Face with Inaccurate Data or Reporting

Introduction

 Data accuracy is an essential element of a quality information system in any organization. However, most information systems are prone to multiple threats of data inaccuracy, and most companies are in need of some basic understanding of information quality concepts to realize and correct their data inaccuracy problems (Eom 2005). The dearth of accuracy in data will result in several costs ranging from correction activities, missed opportunities, and lost customers, through incorrect decisions and information losses. Most companies are unaware of the magnitude and severity of the problems resulting from data-driven decisions. This paper explores the problems organizations face with inaccurate data or reporting.

 

Discussion

Data accuracy is the level on which information in a digital database or data map provides acceptable or values. The data inaccuracy problem turns up when data is displaced and applied for decision making. Many of the elements of data are used only to enter secondary information about the transaction. For instance, attempting to correlate promotions to educational levels calls for that the "education level achieved” field be very accurate (Olson 2003).

 Today companies are investing millions to implement the next generation of information technologies, replacing department-sized legacy systems with enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, and data warehouses (Eom 2005). Poor data are the number-one reason for the high failure rate of new Computer systems. According to Ted Friedman of Gartner, more than 50 percent of data warehouse projects will experience limited acceptance, if not outright failure, because they will not proactively address data quality issues (.08 probability). Tens of millions of dollars can be lost when these new systems must be scrapped or retrofitted. It is easiest to see some of the ways in ...