The Challenges of Measuring Data Quality: A Discussion with Industry Experts
Managing data quality is crucial for any organization, but it can be challenging to put a cost on data quality issues. According to Kalpa, acknowledging that not everything in data can directly be measured is an important step in addressing this issue. "Data itself is a support function inside an organization," she explains. "It's like Bops and management things, so if an analyst produces a report that has a significant impact on the business, it's harder to put a cost on that individual's work because it's two layers removed from the actual business outcome."
To make data quality more tangible, experts recommend looking at different metrics. For executives, reputation, brand trust, and sleep better at night knowing that someone is powering their business are all important considerations. In contrast, data engineers and learning engineers often focus on time spent on cleaning up data, building new pipelines, and other tasks related to data maintenance.
One of the most significant costs associated with poor data quality is revenue loss. As Kalpa notes, "one data issue can easily cost millions of dollars for an organization." She cites the example of a airline, where a single data error can have far-reaching consequences. In contrast, teams often prioritize metrics such as team efficiency or organizational time spent on data-related tasks.
To develop a comprehensive understanding of data quality costs, organizations should consider a range of factors beyond traditional ROI calculations. By acknowledging the importance of data quality and exploring alternative metrics, businesses can better understand the value of their data assets and make informed decisions about how to prioritize their investments.
The conversation around data quality is essential for any organization looking to improve its operations and drive business success. By embracing a nuanced understanding of data quality costs and exploring new approaches to measurement, organizations can unlock the full potential of their data assets and achieve lasting improvement.
Accepting that everything in data cannot directly be measured is a crucial first step in addressing this issue. According to Kalpa, "you should have good data to dive into," but if an organization is not convincing itself or others on the importance of high-quality data, then it may be time to reassess priorities. By focusing on metrics that matter most for individual roles and teams, organizations can build a more comprehensive understanding of data quality costs.
When discussing data quality with executives, reputation, brand trust, and personal satisfaction are often at the top of the list. For example, when asked about ROI, an executive might respond that knowing someone is powering their business "just makes me sleep better at night." In contrast, data engineers and learning engineers tend to focus on metrics related to time spent on data maintenance and other tasks.
In general, there are three key areas to consider when thinking about the cost of data quality issues: reputation and brand trust, revenue, and team efficiency. By exploring these different dimensions, organizations can gain a more complete understanding of their data quality costs and make informed decisions about how to prioritize their investments.
The conversation around data quality is ongoing, and there is no single metric that captures its full scope. As Kalpa notes, "it's way more than 10 sales reps" – and the value of an analyst or data engineer may be harder to quantify because it's two layers removed from direct business outcomes. By acknowledging these complexities and exploring alternative metrics, organizations can build a more nuanced understanding of their data quality costs and make progress towards improvement.
The importance of reputation and brand trust cannot be overstated when it comes to data quality. As Kalpa notes, "if you talk to Executives the number one thing they'll tell you is I just sleep better at night knowing that someone sort of is that that the data that's powering my business." This emphasis on personal satisfaction highlights the human side of data quality and the need for organizations to prioritize its importance.
In contrast, data engineers and learning engineers tend to focus on metrics related to time spent on data maintenance and other tasks. For example, they might ask about "how much time are you spending cleaning up data or cleaning up fire drills." By exploring these different dimensions of data quality costs, organizations can gain a more complete understanding of their needs and make informed decisions about how to prioritize their investments.
The conversation around data quality is ongoing, and there is no single metric that captures its full scope. However, by acknowledging the importance of reputation, brand trust, revenue, and team efficiency, organizations can build a more nuanced understanding of their data quality costs and make progress towards improvement.
As Kalpa notes, "it's depends on who you're at who you're talking to." Executives tend to prioritize reputation and brand trust, while data engineers and learning engineers focus on metrics related to time spent on data maintenance. By exploring these different dimensions of data quality costs, organizations can gain a more complete understanding of their needs and make informed decisions about how to prioritize their investments.
The importance of reputation and brand trust cannot be overstated when it comes to data quality. As Kalpa notes, "the second cost of revenue" is often significant, with one data issue able to have far-reaching consequences for an organization's bottom line. In contrast, team efficiency and organizational time spent on data-related tasks may take a backseat to more pressing concerns.
By acknowledging the complexities of data quality costs and exploring alternative metrics, organizations can build a more nuanced understanding of their needs and make progress towards improvement. This conversation is essential for any organization looking to improve its operations and drive business success.
In conclusion, measuring data quality is a complex task that requires a nuanced approach. By acknowledging the importance of reputation, brand trust, revenue, and team efficiency, organizations can build a more comprehensive understanding of their data quality costs and make informed decisions about how to prioritize their investments.