Towards quantifying data quality costs

Abstract

Today most organizations run their daily operations using data at their disposal. However, a vast majority of the organizations do not have adequate process and tools to maintain high quality operational data at all times. One of the key reasons for this is the lack of appreciation of the damages that low quality data can bring to an organization, and the cost of ensuring high quality of data. This article provides a basis for quantifying in monetary terms the costs of both low quality data and ensuring high quality data. A comparison of the costs of low quality data and ensuring high quality data can be a simple and compelling basis for an organization to determine the extent of the efforts it must expend to ensure high quality of its operational data.