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IAIDQ Publications

A Finance Perspective to COPDQ
December 2015
Sikke van der Zee IQCP

Cost of Poor Data Quality (COPDQ) is the cost related to defects in data. The cost or value related to those defects is an important element to determine how much money is lost by poor quality data; or to put this aspect in a positive mode: How much money can be potentially gained by a company by achieving high quality data? COPDQ is an essential element to convince stakeholders that a data quality improvement program will increase the profit of the company.

It is therefore important that the calculation of the COPDQ is based on Economic Principles that will truly impact the Profit & Loss (P&L) bottom line of the company. The ultimate profit or loss for a company as a whole provides a clear objective that aligns with the perspective of senior executives, who in turn need to support any data quality improvement initiative.

The intention of this article is to provide several insights to determine the true P&L impact. I will explain a few aspects of Economic Principles in relationship to COPDQ. Furthermore in this article I will try to demonstrate with a few examples how to apply these and that ordinary company cost figures are not always suitable for putting a price tag on the poor quality of data.

Read this article in the December 2015 IQ International Journal

IQ International members: Read online version | Print quality version

Non members: Price US$25. Pay online and the journal will be delivered by email within the hour.