Unlocking the Value of Data: Quality over Quantity

value of data boxcube asia elly ken elizabeth ken

In today’s data-driven business landscape, companies recognise the value of data as a strategic resource. However, merely amassing vast amounts of data without a clear plan for utilisation can be counterproductive. Here, we explore the importance of data quality over quantity and highlight the significance of extracting meaningful insights to drive decision-making.

The Pitfalls of Data Collection without Purpose:
Many businesses fall into the trap of collecting excessive amounts of data without a clear strategy. The belief that more data automatically translates to better insights, coupled with a fear of missing out, can lead to information overload and hinder effective data utilisation. Additionally, the costs associated with storing large volumes of sensitive information can be substantial. International Business Machines Corporation (IBM) estimates that bad data costs the U.S. economy $3.1 trillion annually, accounting for the time spent correcting errors and mistakes that impact customers.

“all the time and money spent on digitalising operations, systems, and channels may soon be sunk, when they realise that competition is not really about technology, but rather about data”
Source: ericspiekermann

The Data Quality Challenge:
Data quality is often worse than expected, as evidenced by a study conducted by the Harvard Business Review. The study found that a mere 3% of the data quality scores assessed were considered “acceptable.” This emphasises the need for businesses to prioritise data quality and strive for accurate, reliable, and actionable information.

Collecting Relevant Data and Planning for Success:
To avoid the pitfalls of excessive data collection, businesses should focus on gathering only the data that is directly relevant to their goals and objectives. This shift in mindset, as defined by the Data Management Body of Knowledge, involves planning, implementing, and controlling activities to ensure data is fit for consumption and meets the needs of data consumers.

The Value of Data Lies in Quality and Insights:
Ultimately, the true value of data lies not in its quantity, but in its quality and the insights it provides. By focusing on collecting relevant data and ensuring its accuracy, businesses can unlock the full potential of this invaluable resource. Leveraging high-quality data allows organisations to make data-driven decisions with confidence, gain a competitive edge, and drive growth in a companys’ landscape.

In conclusion, collecting data for the sake of collecting it is an inefficient approach that can hinder success. To thrive in today’s data-driven environment, businesses must prioritise data quality over quantity. By collecting only relevant data, planning for success, embracing a data-driven decision-making culture, and utilising effective tools and processes, organisations can harness the power of data to drive their success, unlock valuable insights, and stay ahead of the competition.

Done By: Rejina Khar, Zarif Ong & Elly Ken
Source: Edenspiekermann, Spiceworks, Harvard Business Review, Forbes & Dama International