Syllabus Focus: Unit 2 Module 1 Content 8
Specific Objective 8: explain how the absence of data quality, accuracy, and timeliness will impact on
organizations;
Content: Including loss of revenue, sales, competitive advantage, customers; poor decision-making; missed
opportunities; impact on problem solutions.
explain how the absence of data quality,
accuracy, and timeliness will impact on
organizations;
Including loss of revenue, sales, competitive advantage,
customers; poor decision-making; missed opportunities;
impact on problem solutions.
Lack of Data Quality and its impact on organizations
Data inputted into computer should at all times be close to accurate and that the quality should be good
or high if we are to trust the data that is stored in these Information Systems. But what are the concerns
when data quality in Information Systems stored is deemed to be of poor quality:
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Affect organizational operations: customers/clients who are presented with wrong information stored
on the stock market performance, can be caused to make inaccurate decisions, leading to loss of
income. With data stored inaccurately, this can lead to poor decision making and lead to the problems
of decisions causing short fall or over expenditure and this can lead to organizational loss or
embarrassment.
Poor Data Quality = missed opportunities: when clients are not provided with accurate data, but
provided with estimated data, then they might miss out on sales being offered by stores or not being
able to ascertain when is the best time to make large purchases or purchase from a particular vendor so
as to get savings.
Poor Data Quality leads to poor problem solving results: imagine that mangers are trying to ascertain
how much materials are going to be needed to repair the road way that was damage by a recently
passing hurricane. Just walking and looking at the surface will not give a true estimate of the damage
done, as damage might be done to the under surface area, or wall areas of the road way. Just not
taking the time to use the appropriate strategies to undertake a careful review of the area, would lead
the government to send out tenders for repairs or carry out repair on a surface and only to realise that
the work cannot be completed with the funding approved for spending leading to incomplete projects.
Lack of Data Accuracy and its impact on organizations
Accurate entry of data is important in organization as it is said that Garbage In, Garbage Out
(GIGO). Once inaccurate data is stored then inaccurate decisions are made leading to other problems.
With many organizations, efforts are made to ensure that data stored is always accurate. At times,
companies have their customer service staff contacts clients and customers to verify data (addresses,
telephone#, etc.) to ensure that in the event of emergencies these can be used as contact. Imagine if the
school records are outdated and a parent needs to be contacted if incorrect data was stored? Inaccurate
data can lead to social problems – being contacted for something which you have no knowledge about. Or
being sent mail or messages if someone’s address or number was stored as yours!
CAPE NOTES Unit 2 Module 1 Content 8
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Lack of Timeliness (Data) and its impact on organizations
When data is not stored in a timely manner or use or updated in a timely manner, several mishaps
can result from this. As it relates to not being stored in a timely manner, data can become corrupted or
miss its input for further system process. Imagine, that as you enter the room, you are allowed 60 seconds
to deactivate the alarm system. The correct code not being entered in 60 seconds, could lead the police
and security officials to take action; as such this can lead to others being alerted.
The government can collect data or an organization from a market research and having not applied
the findings of the data to the current market situation, can lead to missed opportunities or just lead to loss
of sales, etc. Such ignorance to use data within a timely manner can lead to embarrassment or force us not
to have taken the right action as would be required. Imagine being told that the water level is rising in the
upper part of a river, and this was communicated across the radio stations and television stations but
persons in the lower section failed to use this data until a few minutes before the pending threat of large
rush of water?
As it relates to competitive advantage, we should always realise that if we fail to use data in the quickest
times, our competitors would gain the edge as they became more proactive in their actions to use the data
that we are. Suppose, you know that the money market is going to suffer a decline from the trends seen
and from reports given by experts. You fail to advise your customers and they end up loosing their
investments. Had another company have this information, they could advise their customers and sought
permission to make quick and more prudent decisions to move the money so as to prevent against market
lost.
CAPE NOTES Unit 2 Module 1 Content 8
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