Survey shows BI Key Benefits are Intangible

In the latest DM Review it is referred to a market survey that isconducted by Noetix Corp.  It shows that IT professionals consider the intangible benefits of BI solutions to be of more value than any tangible benifits, and therefore find it very difficult to measure the ROI of these applications.

For me this is another proof that even though we cannot decide the cost of poor data quality, it is important to keep the focus on it.  Most costs are hidden and intangible, but you can see results if you do something about it.

The results also show that it’s the quality of the data and information and not the quantity
quantity that is important for the decision makers.

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Another Calculation Method – The 1 – 10 – 100 Method

I have previously described the 1-in 10 rule.  In the article “The real Cost of Bad Data”  it is described how industry analysts had made the 1-10-100 Method.

The average cost of correct entered contact information into the master database cost
$1 is includes data validation solutions, wages for the employee and cost of computer equipment.

If you do the adress validation and de-dupication after the the submission of data in a batch cleansing, the average cost per entry is $10. 

With the commonly used Laissez-Faire solution (doing nothing) the cost is greater than $100 per record.

It is also stated in the the article that up to 20% of the contact data is wrong when it is
saved.

A quick calculation.  You have 100.000 records with 5% incorrect data.  Then the bad
data costs you 100.000 x 0,05 x 100: $500.000 or 2.500.000 DKK

Time to end Laissez-Faire!