Tomasz Tunguz Blog · 2013-01-29 · 4874d

The Exponential Cost of Data Quality: Why Bad Data Creates False Confidence

Data quality errors compound dramatically in cost over time, from $1 to fix immediately to $100+ weeks later. Bad data creates an illusion of knowledge that leads to poor business decisions and missed opportunities. The article argues that data's compounding returns work equally well in reverse—amplifying the damage of inaccuracy.

5 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Cost to fix data error after one hour

10$

after 1 hour

CRM data entry

Cost to fix data error after several months

100+$

after months

CRM data entry

Cost to fix data error at entry

1$

immediate

CRM data entry

Potential financial impact of data error

tens of millions$

worst case

venture capital missed opportunity

Time cost to correct erroneous CRM record

10minutes

colleague verification

organizational data correction