Once you’ve audited your data, it’s time to prioritize the issues identified and implement an actionable data quality improvement and management plan.
The challenge with data is that there are often large volumes of it and your audit may highlight several issues across different areas, so how do you prioritize what should be addressed first?
You need to understand the value of the data to your organization and the impact that it has.
Data, like a business’ equipment, is an asset that holds a value. To provide perspective, imagine if all the data in your organization was lost tomorrow, what impact would this have? How much would it cost to replace it?
Assigning a monetary value will not only help you prioritize where your attention is most needed but will also help you defend and justify investments in data management.
The focus when determining the value needs to be on the concept, securing the understanding of data’s worth, and the need for regular maintenance, rather than the specific details of whether your company’s data is worth $5m or $5.2m.
Let’s run through a worked example calculation of Company A:
The customers at Company A are worth $200 each and we know that they need to renew every year. You allocate 20% of this value to the data, then split this amount equally across four variables – customer name, customer address, email, and phone number.
You allocate 20% of this value to the data, then split this amount equally across four variables – customer name, customer address, email, and phone number.
Once you have applied this calculation, you will have three figures to present to senior management: