One in five businesses have lost a customer due to using incomplete or inaccurate information about them according to a new report from Community Hub member Dun & Bradstreet.
The report, titled The Past, Present and Future of Data, surveyed over 500 business decision makers in the US and UK and reveals businesses are missing revenue opportunities and losing customers due to bad data practices.
Nearly a quarter (22 percent) said their financial forecasts have been inaccurate, while 17 percent of organisations offered too much credit to a customer due to a lack of information about them – and lost money as a result. Moreover, 15 percent said they failed to sign a new contract with a customer because of incomplete data.
The report also found stark discrepancies between the UK and US. Compliance has been nearly twice as big of a concern in the UK than the US (31 percent vs. 16 percent), which may reflect the challenge of meeting the requirements of the GDPR. Already, over 10 percent of organizations report having been fined for data issues.
“Businesses must make data governance and stewardship a priority,” notes Monica Richter, Chief Data Officer, Dun & Bradstreet. “Whether leaders are exploring AI or predictive analytics, clean, defined data is key to the success of any program and essential for mitigating risk and growing the business.”
A Lack of Data Structure
The way that data is structured appears to be a significant barrier in many organizations, with indications that data is often poorly organised, difficult to access and out of date. Nearly half of business leaders (46 percent) say that data is too siloed to make any sense of it, with the biggest challenges to making use of data being:
· protecting data privacy (34 percent)
· having accurate data (26 percent)
· and analysing/processing that data (24 percent).
This lack of structure may reflect the fact that 41 percent of business leaders say that no one in their organization is responsible for the management of data. This absence of ownership may also be why 52 percent of business leaders said they haven’t had the budget to implement data management practices within their organizations.
Who Owns the Data?
The study does reveal a growing recognition that responsibility for data should be a priority for the C-suite. However, business leaders are divided as to who in the leadership team owns the data and what that will look like in the future. One thing all business leaders agree on is that the CEO has had, currently has and will have ultimate responsibility for data – more so than even the CTO or CIO.
You can read the full report here.