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 $100+ weeks later. Bad data creates an illusion of knowledge that leads to poor business decisions and missed opportunities. The article argues that data's compounding returns work equally well in reverse—amplifying the damage of inaccuracy.
Metrics in this report
Cost to fix data error after one hour
10$
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