Gartner says more than 25 percent of critical data in large corporations is flawed
The research firm estimates that more than 25 percent of critical data within Fortune 1,000 businesses will continue to be inaccurate or incomplete through 2007.
By on May 24, 2004The research firm estimates that more than 25 percent of critical data within Fortune 1,000 businesses will continue to be inaccurate or incomplete through 2007.
"Most enterprises don't fathom the magnitude of the impact that data quality problems can have," said Ted Friedman, Principal Analyst for Gartner. "These problems cause wasted labor and lost productivity that directly affect profitability."
Moreover, the majority of large enterprises continue to reach for ineffective technology solutions even after they identify data quality problems, he said. These ineffective solutions often include priority spending programs for advanced business intelligence and customer relationship management (CRM) capabilities. These programs fail, in large part, because the poor quality of underlying data is not recognized or addressed.
Many enterprises simply look to technology they can buy to resolve data quality problems without first focusing on people and business processes, Friedman said. "Throwing technology at data quality issues usually doesn't solve the problem and won't yield positive long-term results," he said.
Friedman said enterprises also should examine organizational approaches and methodologies to improve data quality. They must also engage the active participation of people who use the technology to achieve business objectives, not just technology staff.
"If the IT group is the only organization that actively works and focuses on the issue, the business's ability to achieve data quality goals will be severely limited," Friedman said. "The greatest success in managing data quality comes from engaging both business users and the IT organization."
These findings are among the information contained in Gartner's new Strategic Planning Report, "Using Business Intelligence to Gain a Competitive Edge: Unleashing the Power of Data Analysis to Boost Corporate Performance."