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Business Impact of Bad Data
Jaydeep Deshpande
Marketing Manager
SAS Institute (India) Pvt. Ltd.




                                  Copyright © 2010 SAS Institute Inc. All rights reserved.
Jaydeep                                                             Jaydeep
     Deshpande                                                             Girish
                                                                         Deshpande

 Jaideep            Jagdeep                                                      Jaydeep
Deshpande          Deshpande                                                    Despande

       Jaydeep                                                         JG
      Deshpandey                                                    Deshpande



            • Is this the same person?
            • Are these different people?
            • How sure are you?
                                                                                           2



                    Copyright © 2010, SAS Institute Inc. All rights reserved.
Global Challenge




  “Strategies of yesterday may no longer work today.”




                                                                                3



                    Copyright © 2010, SAS Institute Inc. All rights reserved.
Information Explosion




                                                                           4



               Copyright © 2010, SAS Institute Inc. All rights reserved.
Information Revolution
Digital Information Doubling Rate




           2005                                        1100 days




                                                                                5



                    Copyright © 2010, SAS Institute Inc. All rights reserved.
Information Revolution
Digital Information Doubling Rate




           2005                                        1100 days

           2007                                                     11 months




                                                                                6



                    Copyright © 2010, SAS Institute Inc. All rights reserved.
Information Revolution
Digital Information Doubling Rate




            2005                                       1100 days

            2007                                                    11 months

            2011                                                    11 hours


                                                                                7



                    Copyright © 2010, SAS Institute Inc. All rights reserved.
Information Revolution


  “The data deluge is such that human
  beings can no longer be expected to
  spot patterns in the data.”
  “Nor can they grasp the size and
  complexity of one database and see
  how it relates to another.”


                                                                           8



               Copyright © 2010, SAS Institute Inc. All rights reserved.
Trend: Information Overload
Study: 1009 Managers (US & UK $500M+)



  42%   “Too much information”
  44%   “Other departments not forthcoming with data”
  39%   “Can’t figure out which information is current”
  38%   “Need to weed out duplicate information”
  21%   “Don’t understand the value of the information”


                                                 `


                                                                                 9



                     Copyright © 2010, SAS Institute Inc. All rights reserved.
Data That is Most Suspect
What types of data are most susceptible to quality problems in your organization ?




                                                                                           10



                               Copyright © 2010, SAS Institute Inc. All rights reserved.
Questioning the Data


                                                                                   “What happened?”

     “Where exactly is the problem?”

                                                   “What if these trends continue?”

“How many, how often, where?”

                “What’s the best that can happen?”

                                                                     “What will happen next?”

 “What actions are needed?”

                                               “Why is this happening?”                               11



                       Copyright © 2010, SAS Institute Inc. All rights reserved.
Business Impacts of Poor Data Quality
• Reduced customer satisfaction
• Inaccurate or non-existent reporting (sales, profitability,
  inventory)
• Reduced productivity
• Excess inventory or stock outs
• Inaccurate billing and invoicing
• Inaccurate margins on products
• Incorrect commission payments
• Delays in product launch (inability to ship or sell at launch)
• Lost sales (inability to ship or sell)
                                                                                     12



                         Copyright © 2010, SAS Institute Inc. All rights reserved.
What is Poor Data Costing My
Business?
   Which data integrity issues are the highest impact from a
        business perspective (Revenue, costs, risk?)

– Revenue:
  • What is the loss from failed business transactions due data issues?
  • How quickly can we respond to business opportunities?

– Costs:
  • How has throughput suffered due to errors?
  • What percentage of time has been lost in scrap and re-work?

– Risk:
  • How is poor data increasing risk? (Compliance, project failure, etc.)
  • Can your organization effectively perform mergers and acquisitions (M&A)?



                                                                                       13



                           Copyright © 2010, SAS Institute Inc. All rights reserved.
What Makes Data Credible?

 Accuracy      • Is it realistic or believable?


  Integrity    • Is it structured and managed?

               • Is it consistently defined and
Consistency      maintained?

               • Is the data valid based on business
  Validity       or industry rules and standards?

               • Is it from known sources and in the
 Reliability     form that the users understand?
                                                                           14



               Copyright © 2010, SAS Institute Inc. All rights reserved.
Data is the strongest competitive weapon in
the hands of the organization, provided it is
understood correctly & used appropriately




                                                                         15



             Copyright © 2010, SAS Institute Inc. All rights reserved.
Is data quality impacting your business
performance?
                Jaydeep
               Deshpande                                     Jaydeep Girish
                                                               Deshpande


                                      Jagdeep                                    Imagine the amount, organizations
  Jaideep Deshpande                  Deshpande                                   may spend if they reach out to the
                                                                                 same person, due to poor data
                                                                                 quality!

 Jaydeep Deshpandey              Jaydeep Despande




                      J G Deshpande




 Lets untangle…                                                                                                       16



                           Copyright © 2010, SAS Institute Inc. All rights reserved.
Copyright © 2010 SAS Institute Inc. All rights reserved.

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Business Impact of Bad Data

  • 1. Business Impact of Bad Data Jaydeep Deshpande Marketing Manager SAS Institute (India) Pvt. Ltd. Copyright © 2010 SAS Institute Inc. All rights reserved.
  • 2. Jaydeep Jaydeep Deshpande Girish Deshpande Jaideep Jagdeep Jaydeep Deshpande Deshpande Despande Jaydeep JG Deshpandey Deshpande • Is this the same person? • Are these different people? • How sure are you? 2 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 3. Global Challenge “Strategies of yesterday may no longer work today.” 3 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 4. Information Explosion 4 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 5. Information Revolution Digital Information Doubling Rate 2005 1100 days 5 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 6. Information Revolution Digital Information Doubling Rate 2005 1100 days 2007 11 months 6 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 7. Information Revolution Digital Information Doubling Rate 2005 1100 days 2007 11 months 2011 11 hours 7 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 8. Information Revolution “The data deluge is such that human beings can no longer be expected to spot patterns in the data.” “Nor can they grasp the size and complexity of one database and see how it relates to another.” 8 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 9. Trend: Information Overload Study: 1009 Managers (US & UK $500M+) 42% “Too much information” 44% “Other departments not forthcoming with data” 39% “Can’t figure out which information is current” 38% “Need to weed out duplicate information” 21% “Don’t understand the value of the information” ` 9 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 10. Data That is Most Suspect What types of data are most susceptible to quality problems in your organization ? 10 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 11. Questioning the Data “What happened?” “Where exactly is the problem?” “What if these trends continue?” “How many, how often, where?” “What’s the best that can happen?” “What will happen next?” “What actions are needed?” “Why is this happening?” 11 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 12. Business Impacts of Poor Data Quality • Reduced customer satisfaction • Inaccurate or non-existent reporting (sales, profitability, inventory) • Reduced productivity • Excess inventory or stock outs • Inaccurate billing and invoicing • Inaccurate margins on products • Incorrect commission payments • Delays in product launch (inability to ship or sell at launch) • Lost sales (inability to ship or sell) 12 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 13. What is Poor Data Costing My Business? Which data integrity issues are the highest impact from a business perspective (Revenue, costs, risk?) – Revenue: • What is the loss from failed business transactions due data issues? • How quickly can we respond to business opportunities? – Costs: • How has throughput suffered due to errors? • What percentage of time has been lost in scrap and re-work? – Risk: • How is poor data increasing risk? (Compliance, project failure, etc.) • Can your organization effectively perform mergers and acquisitions (M&A)? 13 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 14. What Makes Data Credible? Accuracy • Is it realistic or believable? Integrity • Is it structured and managed? • Is it consistently defined and Consistency maintained? • Is the data valid based on business Validity or industry rules and standards? • Is it from known sources and in the Reliability form that the users understand? 14 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 15. Data is the strongest competitive weapon in the hands of the organization, provided it is understood correctly & used appropriately 15 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 16. Is data quality impacting your business performance? Jaydeep Deshpande Jaydeep Girish Deshpande Jagdeep Imagine the amount, organizations Jaideep Deshpande Deshpande may spend if they reach out to the same person, due to poor data quality! Jaydeep Deshpandey Jaydeep Despande J G Deshpande Lets untangle… 16 Copyright © 2010, SAS Institute Inc. All rights reserved.
  • 17. Copyright © 2010 SAS Institute Inc. All rights reserved.