Machine learning

Don’t let bad data ruin your business: Why clean databases are essential for success

According to Forbes, 27% of business leaders confess that they are unsure about the accuracy of their data. Data is the raw material of any enterprise and having access to prime-quality data is essential for future decision-making. Data alone does not suffice; it must be transformed into actionable knowledge to make use of it – which can only happen if you have easy access to your quality datasets. Fortunately, with the right tools and techniques, this puzzle can be easily solved.

From improved customer relationships to better decision-making based on accurate insights. In this article, we will examine the importance of database cleaning, the consequences of not keeping your data clean, and how taking care of your data can benefit you.

The Importance of Database Cleaning

Data has become the lifeblood of modern organizations, powering almost every business process. Yet, no matter how valuable data can be to your business decisions and insights, it will quickly become useless if you don’t maintain its accuracy and integrity.

Every day, companies generate an astounding 3.5 trillion gigabytes of “dark data,” so maintaining a clean database is essential for businesses to maximize efficiency and reduce errors.

Database cleaning involves removing duplicate, outdated or inaccurate information so that only relevant data remains. Not only does this make it easier to access the right data quickly when needed, but also provides insight into areas of improvement based on current records – allowing your company to optimize processes and achieve better results in the long run!

Reducing database clutter assists your team in making better decisions based on reliable and relevant data, ultimately allowing your company to stay competitive in today’s ever-changing business landscape.

But if you don’t keep your organization’s records tidy and streamlined, there can be serious consequences. Let’s investigate what those repercussions are in greater detail.

The Consequences of Not Keeping Your Data Clean

Recent Gartner research reveals that organizations lose an average of $12.9 million annually due to poor data quality. The outcome of unstructured data can range from minor inconveniences to major losses for a company. Let’s delve deeper into each consequence.

  • Unorganized databases make it harder for employees to find the information they need when working on projects, resulting in wasted time and money for the company as a whole.
  • Scrambled data can lead to missed opportunities, inaccurate analysis, and poor decisions that could potentially harm a business’s reputation or bottom line.
  • Unstructured databases put businesses at risk of non-compliance with regulations such as GDPR and HIPAA due to a lack of access control or improper storage practices.
  • The need for manual processing of data, which generates costs (staff time), e.g. missing address data does not allow to send correspondence to the customer.
  • Propagation of errors in data-driven business processes, e.g. errors in address data delay the execution of the customer’s order (the need to complete the data) and may be associated with reduced customer satisfaction with the company’s services
  • The risk of making the wrong business decision based on incorrect data, e.g. mass mailing to customers from a database that has duplicates involves higher costs (a person is in the database two times with minor differences, for example in the address).

To avoid these pitfalls, companies should make sure that they are regularly and thoroughly cleaning their datasets with appropriate tools and techniques. Doing so will enable them to maximize the value of their data and use it as a strategic asset.

How and When Taking Care Of Your Data Can Benefit You

In contrast with the potential losses mentioned above, regularly cleaning your databases has numerous benefits such as:

  • Improve efficiency by easy access to current information
  • Make decisions based on accurate data
  • Foster better customer relationships with accurate record keeping
  • Meet GDPR compliance regulations quickly and easily
  • Reduce costs through automation
  • No need for manual data processing
  • Efficient and effective operation of the company
  • Decrease security risks due to fewer errors
  • Enhance marketing efforts with precise segmentation
  • Generate reliable insights leading to improved performance metrics for the organization overall.

It is also worth mentioning that data cleaning finds its application, for example, when two companies merge into one or when one company buys another with a similar business profile. In such a case, there is a chance that the customer/contractor databases of the merged companies contain data of the same people/customers. In order to merge such databases into one, it is necessary to deduplicate and generate the so-called golden record, i.e. the record that best describes a given customer based on all the data we have about him.

Data cleaning is also needed when business processes in a company depend on the data, or even when the entire business is based on the data, e.g. for a courier company, quality address data is necessary to deliver on time and to the right place.

Unlock Hidden Patterns and Increase Your Data Quality with AlgoMaps from Algolytics

At Algolytics, we are committed to delivering top-notch services that will optimize your data quality and increase efficiency. Our Algomaps tool will benefit you with Standardization, Deduplication, Autocomplete, Geocoding and Data Enrichment so that you always get the most out of every bit of customer information by improving accuracy and streamlining processes

Our advanced solutions are backed up by experienced consultants ready to tailor-make a plan just for you. We’ll review and clean up your databases so that you have the confidence to make quality data-driven decisions quickly.

Contact us and see how quality data can leverage your business -> CONTACT US

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