Poor data management practices can be detrimental to your business. On the other hand, an effective data management system can make storing, accessing and locating files very efficient. Data is your business’ most valuable asset, so the effective storage and management of files should be at the forefront of your business’ objectives.
When you have poor data management practices in place, your organisation may be prone to productivity loss, higher costs and a negative reputation. Uncategorised data can slow employees down and your organisation may even miss out on business opportunities. It’s for this reason and many more, that it’s important to ensure that your business isn’t taking part in poor data management practices.
Think about your data management for a moment and how it ties into your business’ workflow. Could you unknowingly be practicing poor data management practices? Here are five ways that poor data management can affect your business.
Making company data accessible is key. If files, documents and important data are missing or are stored in the wrong place, errors can easily snowball. This is a costly mistake as extra work hours will be put into rectifying these errors rather than contributing towards your business’ goals and objectives.
Moreover, unorganised data limits forecasting and reporting. Without meaningful business reports that detail how your company is performing, data is useless. This can also affect disaster preparedness. Without a clear picture of how your business is performing, preparing and implementing disaster plans will be difficult.
For some organisational tips, we created a whole blog post that discussed how to make your data more searchable. You can read it here.
Poor Data Quality
Without accurate data, businesses are unable to achieve their set goals and objectives. Bad data can ultimately cause your business to miss out on great opportunities. This may result from inaccurate, disorganised or unreliable data which can result in lost customers.
Being able to understand and engage with your customers is essential to any business, and without this information your business may fall behind. To enforce data collection, it’s important to make sure that your leadership team is on the same page. This will allow you to make use of the data when the time comes.
Having a strong data framework creates a compliance code for your data that can be carried throughout your business. To find out more about the perfect data management framework, click here.
When it comes down to it, bad data is bad for business. Poor data quality may cause a loss of sales or donors, an ineffective use of employee time and even an increase in cost. These factors clearly affect revenue in numerous ways.
If data isn’t updated when using inventory or management systems, employees might not know what’s going on. Without regularly updated data, management are unable to track sales, deal conversions or lost opportunities. Without this data, your business will be incapable of prioritising opportunities and deals that might get the best outcomes.
Keeping track of data and sensitive information ensures that your business is protected against any data risks that can threaten the viability of your non-profit organisation. For more information, check out our guide to cybersecurity here.
Bad data can affect performance and productivity. If employees must keep reviewing, checking and correcting bad data, it turns into a very time-consuming and costly task. A report on Harvard Business Review points out that data workers waste a massive 50% of their time finding and correcting errors.
Making matters worse, with business growth, data can become scattered and fragmented. This may lead to errors and inconsistencies, forcing employees to do a lot of manual work to fix initial data and start from scratch.
To improve employee productivity and create a positive data culture, we put together a blog post detailing to non-profits can reduce the cost of knowledge loss. You can read it here.
In our digital age, when customers are unhappy it’s very likely that they’ll voice their grievances on social media. This can damage business reputation and potentially result in a loss of other customers.
These negative experiences may result from customers responding to bad data practices. This might be because they feel emails are inaccurately targeted towards them and as a result have unsubscribed, or they might feel as if there are data inconsistencies during interactions with employees. This may even cause employees to question the validity of data, which may cause them to make misinformed decisions that can damage credibility.
To learn more about how your business can thrive in today’s digital culture, we put together a blog post that discusses how to transform your business into a modern workplace. You can read it here.
Poor data can mean that business transparency is lacking. While it’s easy to push data management to the sidelines when you’ve got a lot on your plate, poor data quality can lead to bad business decisions. The benefits of effective data management go beyond revenue. With a strict framework in place, productivity and organisation are enhanced and your business is able to work towards achieving their goals.
Do you want to take your non-profit organisation to the next level? Help us to understand your company pain points and come up with creative solutions from a holistic point of view. Book in a Technology Enablement Workshop with us today!