Why Bad Data Could Cost Entrepreneurs Millions

Why Bad Data Could Cost Entrepreneurs Millions

June 12 2020
Website :
https://www.entrepreneur.com/article/332238

Student Name : Joyce Chang 張可薔

Student ID : D0740800

    Wrong decisions made from bad data are not only inconvenient but also extremely costly, the average financial impact of poor data quality on organizations is $9.7 million per year. Bad data slows employees down so much so that they feel their performance suffers.  Research has shown that bad data is on average costing businesses 30 per cent or more of their revenue.
    Accommodating bad data is both time-consuming and expensive. The data needed may have plenty of errors, and in the face of a critical deadline, many individuals simply make corrections themselves to complete the task at hand. Bad data can hurt entrepreneurs in different ways. It may mean they launch a store on a street that doesn’t have the footfall and demographics promised, resulting in lower than expected revenue.      
    Alternatively, it could be a failure to optimize an iOS or Android app for new-user conversions because the data is leading the programming team to the wrong conclusions—something that could go on for weeks or even months. The one constant is that the only thing worse than not having any data at all, is drawing the wrong conclusions from bad data.
    Data may provide us with insights into our food preferences or travel habits. Most of the time, data will provide a much more complete picture of the user and spur innovative services and solutions. Yet, integrating this data and mapping remains extremely difficult in the current data economy.
    So the next time our startup fails or the cashflow is too deep in the red, don’t just question your individual business strategy or product, but look at the underlying data assumptions. As with any good education, it may not always be pleasant, it may be surprising, or may even be downright depressing, but it could also save you millions.



Comments

  1. Gary LaiJune 14, 2020 at 11:56 PM

    This article is talking about the risk if manager use the bad data, This all goes beyond dollars and cents. Bad data slows employees down so much so that they feel their performance suffers. For example, every time a salesperson picks up the phone, they rely on the belief that they have the correct data – such as a phone number – of the person on the other end. If they don’t, they’ve called a person that no longer exists at that number, something that wastes

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