Data accuracy is an important aspect of data quality. In a company, data is gathered from several disciplines. Every business process has a huge collection of complex data that needs to be maintained in a specific manner.
This data that accumulates in the data warehouse must be perfect and appropriate as it is used for several important business decisions. A company’s planning, forecasting, budgeting, business intelligence, and all such activities are based on the accuracy of the data. If the data is irrelevant or incorrect then it can disrupt the entire working system of the business.
There are two factors related to data which needs to be taken care of,
- The data entered must be of the right value.
- It must be correctly presented consistently by the expected data standards of the business and its models.
How does data inaccuracy occur?
One of the simple reasons for data inaccuracy is the manual data entry system where there are chances of feeding incorrect details by mistake. There is a splurge of applications and tools in the market which can be used to reduce the chances of such errors from occurring.
Data in accuracy happens due to lack of data standardization.For example,
EU database and other countries of the world follow DD/MM/YY format to write the date. But the US database follows MM/DD/YY format to write the date. Consider the date 11/12/2020, when it is converted to content there will be no accuracy. It is difficult to decide whether it is 11th December or 12th November.
Data decay is yet another reason for having incorrect data. Over time the existing data of a firm can become redundant and hence lead to data decay. For instance the personal details of the employees such as addresses or phone numbers. Hence, the firm must ensure that it has a rigorous data team that is very dynamic in nature and keeps a close tab to data accuracy which will enhance the company’s overall growth and performance.
How to improve data accuracy
The company needs to set an objective for data quality. The topmost management of the organization has to initiate to solve the basic problems that are trouble their data accuracy and also it has to set realistic objectives for the data entry team.
Do not pressurize the data entry team. If the data entry team is under pressure there will be a chance of data entry errors.
To improve quality of data, have accurate data source.
From time to time do a data quality audit to find out very common issues like duplicate, incomplete information, etc.
The company can make use of the Data Quality Assurance Program to ensure that the data collected from various sources are correct and relevant. This implementation will help the firm to record useful data and keep it intact.
Importance of data accuracy
- Helps to make better decision: When data quality is high, it allows the users of the organization to get better results and it also increases the confidence level of workers
- Increases efficiency: With the help o genuine output a company can improve its decision-making ability and increase its efficiency
- Saves money and time: Data accuracy helps to prevent wasting of money and wasting of time on unprofitable methods, such as sending mail to the wrong address.
- Improves reputation: Good data quality will impact positively on your brand productivity, efficiency and reliability so that improves your brand reputation
- Increases productivity: Accurate data allows employees to do the work easily and efficiently by avoiding finding and fixing data errors. Hence employees focus on their target
- Improves marketing: Good quality of data helps you to market your products or services to the right customers, and also you can engage customers with your brand, which improves your sales
- Improves customer satisfaction: Accurate information about your customers helps your marketing team to deliver the products and services at the right time, which satisfies your customers
Get more definitions of Data accuracy and other ERP related terms here.