Essay on the 8 Impact Techniques Discussed by Danette McGilvray

Introduction

Business impact techniques can be classified as either quantitative or qualitative. Understanding how data quality concerns affect a company’s business will help that organization build a case for investing in information quality, get support for that investment, and make well-informed investment choices. There are a few exceptions to the rule that data quality should not be quantified in terms of “zero flaws” or “perfect data” (McGilvray, 2013). Firms that understand the ramifications of data quality issues can build a business case for information quality, get funding, and make well-informed investment decisions. This paper aims to measure the effect of data quality issues on a company’s bottom line and profitability. Both qualitative and quantitative measures will be employed in this study.

Review of the 8 Impact Techniques

As Danette Mcgilvray explains in her article, there are different ways to create, improve, manage, and sustain the quality of data and information. The eight phases are all about acting to address the important business needs of the organization and the data quality concerns that go along with those needs.

Anecdotes

The simplest and most cost-effective way to gauge the influence of a company is to collect stories. However, positive outcomes are still possible. Using stories can help pique a listener’s interest in a subject by making it relatable to their own life experiences. Leadership may be instantly engaged when the correct story is told, especially when facts and data are given context (McGilvray, 2013). A story can be helpful even if there is no quantitative data to back it up.

Usage

List the present and future uses of the information to demonstrate the business impact. The Apply step of the POSMAD life cycle is where the current applications come from. When we talk about the Apply phase, we’re talking about anything that involves getting and using information, whether finishing transactions, generating reports, making choices, or conducting automated operations (Mao et al., 2018).

Five “Whys” for Business Impact

Individuals, groups, and teams can all benefit from using the Five “Whys.” It is frequently used in manufacturing to discover the underlying causes of problems. Organizations use this technique to address the problem of poor data quality. Afterwards, the organization asks “Why” five times until it reaches the business impact (Mao et al., 2018). Before finalizing their findings and recommendations, the organization should record what they have learned, including quantifiable aspects.

Benefit versus Cost Matrix

This method evaluates and rates the trade-offs between the benefits and costs of issues, recommendations, or enhancements. To select the quality dimensions to analyze, a corporation must first comprehend its needs and strategies (Mao et al., 2018). As part of developing an improvement plan, it should also assess the quality of the data and prioritize which recommendations should be implemented first.

Ranking and Prioritization

Prioritization indicates the relative importance or value of one thing to another. Whatever is given utmost attention has the greatest impact on the business. Missing or erroneous data has an influence on business processes, which is evaluated in this step. It can help businesses decide which data sets need quality checks (Sadiq, 2013).

Process Impact

Workarounds hide data of poor quality from view. By demonstrating the impact on procedures and the related expenses, a corporation can make better decisions about fixing previously unclear issues. Most often, a single person or a small group of persons familiar with the business’ procedures will employ this strategy (Sadiq, 2013).

Cost of Low-Quality Data

Poor data quality cost the company in many ways, including waste and rework, missed revenue opportunities, and lost business (Sadiq, 2013). This step calculates the costs that were previously only known through anecdote or observation. Using a cost measure that the company understands best, quantifying the impact shows the impact.

Cost-Benefit Analysis

Standard financial decision-making approaches include cost-benefit analysis and return on investment (ROI). Before making any big financial investment decisions or activities, a corporation may require this type of information, and these investments in information quality enhancement are frequently costly (Sadiq, 2013). Management is in charge of deciding how money should be spent, and it must weigh the various investment options available.

Technique to Use

The technique I intend to use is the Ranking and Prioritization technique. Missing and incorrect data have a varying impact on various business processes, which must be accounted for using this method. The organization should determine the business processes and information use that will be prioritized. The most efficient way to rank is through a facilitated session. Preparation is required, among other things, to establish the business’s focus and the specific processes and data to be ranked (Sadiq, 2013). Ranking can be applied to certain data or information groups that include several closely linked items. The organization should make certain that participants understand and agree on what should be ranked and why. If it is going to rank something, it should explain how it’s ranked and provide real-world examples from the business.

Situation

Poor quality consumer data was affecting the company’s processes. A representative from each of the three departments—Sales, Marketing, and Data Management—went to a specific meeting. After being briefed on the purpose of the session, each participant knew what to expect, so they came to the assisted session ready to contribute their time and ideas. Listed below are the key business processes considered for ranking: Promotions, special mailings, and subscriptions have all been targeted by marketing. Sales decided that territory management would keep track of sales reps’ geographical locations inside each district. Account lists and territory assignments were among the reports selected by the data management team for use in business decisions.

How the Technique Illustrates the Business Impact

I will use this technique to show the impact on the company’s bottom line. It can also be used to determine which information needs the most attention. I will summarize what was discovered, including both unexpected and validation of previous beliefs and early recommendations based on the findings. I will then rank each piece of data according to its ability to be collected and maintained. This technique allows the interaction of those that use or impact the same information’s quality. A session that is successful results to an increase in understanding and cooperation between the individuals responsible for information quality and those that rely on this information.

References

McGilvray, D. (2013). Data quality projects and programs. In Handbook of Data Quality (pp. 41-73). Springer, Berlin, Heidelberg. DOI: 10.1007/978-3-642-36257-6_3

Mao, X., Gong, B., Su, F., Xu, K., Xian, K., Liu, D., & Guo, H. (2018, May). Data quality management and measurement. In International Conference on Signal and Information Processing, Networking and Computers (pp. 229-236). Springer, Singapore. DOI: 10.1007/978-981-13-1733-0_28

Sadiq, S. (Ed.). (2013). Handbook of data quality: Research and practice. Springer Science & Business Media. https://link.springer.com/content/pdf/10.1007/978-3-642-36257-6.pdf