Poor Data Quality cost 100 largest Danish companies 4 Billion DKK

This is the result in a study PA Consulting has conducted in Denmark. They also mean this figure is a conservate figure and the real cost is probably higher.

Another result is that you can save 3,5% in purchasing if you have good Data Quality.

The question is why the management let this happen, and the conlusion is that it is because the costs are hidden and you cannot pull the numbers from the accounting.

You can read more about the study here. The article is in Danish.


In 2002, Poor Data Quality cost the the US Companies $600 Billon a year.

This was the result of The Data Warehousing Institute (TDWI) study in 2002. The study was based on survey data from 647 respondents.

What i find interesting in this study is this:

“Almost 50 percent of survey respondents express no current plans to implement an initiative to improve data quality, while 78 percent said their organizations need additional education about the importance of data quality and methods to maintain and improve it.

“The good news is that achieving high quality data is not beyond the means of any company,” continued Eckerson. “Companies that have invested in managing and improving data quality can clearly cite the tangible and intangible benefits of doing so.” Benefits include improved customer satisfaction, a “single version of the truth,” and “greater confidence in analytical systems.””

This is the same conclusions I have reached after my cooperation with several customer in the Nordic area. With a small investment in cutting edge technology, you get more satisfied customers and employees, better decision data, and significant reduction in operating costs.

You can read more about the study here.

By the way. 600 Billon USD is 3.928.310.000.000 SEK, 3.340.560.000.000 NOK or 3.105.720.000.000 DKK

Poor Data Quality cost Dutch companies €400 Million pr Year

This is the result of a survey of 20.000 Dutch Organizations employing 10 or more people. Another interesting aspect of the survey is that even though 92,6% of the organizations find maintaining the quality of relationship data important, it appears that only 52% of the companies actually monitor the entry of data.

I believe the reason for this is that most organizations don’t know how they can monitor this effectively and at low cost.  You can set up routines for this very easily and at virtually no cost. When you consider the cost the organizations aquire from bad quality,  you wonder why they let this happen.

The problem is that the cost is generally hidden cost and can therefore not be easily accessed and analyzed.

After new year 2008 we will provide several solutions on how you can try to assess the cost of Data Quality issues.

You can read more about the Dutch Survey here