Assess Business Impact
July 2008, Reprint from Executing Data Quality Projects: Ten Steps to Quality Data and Trusted Information (Step 4)
This document details eight specific techniques for assessing the business impact of data quality, as described in the methodology Ten Steps to Quality Data and Trusted Information™. The techniques are:
- Anecdotes: collecting examples or stories about the impact of poor data quality.
- Data Usage: inventory of the current and/or future uses of the data.
- Five “Whys” for Business Impact: asking “Why” five times to get to the real business impact.
- Benefit versus Cost Matrix: analyzing and rating the relationship between benefits and costs of issues, recommendations, or improvements.
- Ranking and Prioritization: ranking the impact of missing and incorrect data on specific business processes.
- Process Impact: illustrating the effects of poor-quality data on business processes.
- Cost of Low-Quality Data: quantifying the costs and revenue impact of poor-quality data.
- Cost–Benefit Analysis: comparing potential benefits of investing in data quality with anticipated costs, through an in-depth evaluation. This includes computing return on investment (ROI)—profit from an investment as a percentage of the amount invested.
Keywords: Data Quality ROI, Data Quality Cost/Benefit analysis
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