How does a company apply a “cost” to bad data when the costs are so fragmented across the organization? There are obvious costs such as a part not being in inventory, purchasing has tried to buy the part but the supplier didn’t recognize the part number, now production is down and everyone is scrambling to find the replacement part. In this case the cost of the bad data can be assigned.
What about the other costs? What does it cost a global manufacturer the lack of visibility of the “spend” or the inability to manage vendors selling like or equivalent products?
It’s estimated that process failures and bad information cost $1.5 trillion or more in the U.S. alone.[i]
[i] Larry English, “Information Quality Tipping Point: Plain English about Information Quality,” DM Review, July 2007.
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