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Information Difference Finds Only 15% of Organizations Rate their Data Quality as High or Very High

Published: June 19, 2008

A problem costing tens of millions of dollars in many cases.

Only 15% of organizations rate their data quality as “high or very high” - a problem costing tens of millions of dollars in many cases, according to findings released by the Information Difference, the strategic advice and research firm dedicated to master data management (MDM). Despite such widespread levels of bad data quality, 30% are yet to deploy any data quality tools to combat the problem.

The research among senior IT executives (principally CIOs and chief architects) looks at the take-up and adoption of MDM software, and reveals that this poor master data management comes at a huge cost to many organisations. 21% of respondents believe this costs their company between USD 10 – USD 100 million per year, while only 14% of companies thinking that costs directly attributable to poor master data are less than USD 1 million per year.

One of the major obstacles preventing companies from managing their master data effectively is the sheer number of systems holding this information. Only one percent of those surveyed had a unified source for their master data, suggesting the overwhelming majority of firms are only taking their first steps in addressing this vital business issue.  The median number of systems holding customer data was six and for product data was nine, but 13% of companies have over 100 systems storing customer data, and 11% have over 100 systems storing product data. 

“We often hear that MDM is a key concern for CIOs, yet in reality it seems there’s still very little actually being done about it,” commented Andy Hayler, CEO, The Information Difference. “Given the huge costs some firms are experiencing, surely it’s time the situation changed. The business case for tackling master data management is stronger than ever.”