US businesses are losing hundreds of billions of dollars every year as a result of storing bad data on their systems.
According to research group Ovum, this is also having a negative effect on organizations' ability to ride out the tough economic climate.
Indeed, the independent technology analyst has estimated that inadequate data quality costs US companies 30 per cent of their total revenues, or $700 billion annually.
Bad data includes incorrect and outdated values, missing information and inconsistent formats. Wasted time, poor targeting of resources and flawed pricing strategies leads to costs mounting over time.
Madan Sheina, author of the report and an Ovum lead analyst, said that it was important that businesses invested in adequate data quality tools to address the problem
"With such a high cost, it is imperative that businesses get to grips with this issue. If more did, the economy would be in a better position to recover from the downturn and emerge more competitive when the upturn arrives," he added.
Posted by Richard Jones