Why quasi “better data” can mean billions

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Quality over quantity – right?

When it comes to data, you kind of need both to see the impact on your business… or home.

Eric Savitz of Forbes recently posted an article written by Anitesh Barua and Irfan Khan:  “Does Better Data Lead To Better Corporate Performance?” where they shared the results of a research study conducted by the University of Texas at Austin and the Indian School of Business of over 150 Fortune 1000 companies (with an average of 36,000 employees and $388,000 in sales per employee).  The study found that companies with data that are “10 percent better” than their competition realized a 16 percent higher return on equity, or what would equate to an extra $2.01 Billion in sales, or $55,900 per employee.

When I first read this, I immediately jumped to, “what does 10% better mean?”

Good thing the very next paragraph explained it.   “Better data” is measured based on several key attributes:

  • Quality: accuracy, scope, timeliness, recency
  • Usability (ease of use, concise presentation, etc.)
  • Accessibility
  • Sales mobility (ability to transact with customers regardless of location)
  • Intelligence (trends, recommendations, profile matching, etc.)

When put into an acronym,  it spells “QUASI”. Irony or just coincidence?

Either way, the use of such attributes to grade a company’s data is “quasi” accurate. Just look at your own business, or even personal life. How do you use data today to make better decisions? Maybe, you are using data to manage your home finances and budget to save for a vacation, or college tuition for your kids, or a new home. The ability to stay on budget and save the needed dollars largely depends on how accurate and timely, easy to use, simple to access, and smart our data is.  Look no further than software like Quicken or online banking services today that promise “better data so we can see where our money goes”.

For the 150+ Fortune 1000 companies, quasi “better data” means an extra $2.01B in sales per year.  For us, it’s a heck of a lot smaller, but potentially just as rewarding.

How are you using quasi “better data” today in your home?

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2011-10-27T08:39:52+00:00

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