Data Quality and Readiness: Does your company manage its data well?
Across all industries and in the current market landscape, the volume of data being produced and processed by companies continues to increase and shows no signs of slowing down. As a critical business asset, it is of utmost importance that the collection, management and storage of data by organizations, especially sensitive information, is not just compliant, but that the data itself is accurate, complete, consistent, valid, and secured.
Syniti (formerly Back Office Associates), a global leader in data migration, has introduced a Data Readiness model: a five-level model that measures data quality and a company’s ability to derive value from it and reduce risks across the organization.
Level 1: Technically Valid
The basic level. Data that is Technically Valid means that the data being collected does not generate any errors when it is encoded in business systems. However, this does not mean that the data is accurate, verified, without duplications, consistent and necessary. This level of readiness may put the business at a higher risk. If the business does not have the correct data point at the right time, in the right format, with the correct values, it could have serious implications for the organization.
Level 2: Business Relevant
This level of data readiness means that the data is technically valid and is appropriate and necessary for its intended use. It could also mean that the data collected and stored exists but may be incomplete. The impact to the business could be in the form of either a stalled process, wherein extra steps need to be taken to collect missing data, or data is no longer needed having to be deleted or destroyed.
Level 3: Business Ready
Business Ready Data fits the basic needs of processes, reporting and compliance. In this degree of Data Readiness, organizations can perform efficiently and operate properly. The risks are greatly reduced because the quality of data is of a higher level and no longer just compliant.
Level 4: Reconciled and Harmonized
While Business Ready data already enable organizations to move and operate efficiently, there are still some risks. When Data is Reconciled and Harmonized across different platforms, channels and can be used by different departments, it subsequently minimizes the risks. Data values in this level are the same and are accurate across the board.
Level 5: Validated and Authorized
The highest level of Data Readiness a company can achieve is when the data is Validated and Authorized and reviewed by business stakeholders. It is data that has been approved for business usage and is completely traceable by the entire enterprise. For legal and practical necessity, this level of data readiness is the most compliant and allows the most risk mitigation. This level is best for those highly regulated industries such as Healthcare and Insurance, among many others.
With this five-level model of Data Readiness, data governance officers and IT personnel can easily identify and determine where their organizations fall under and make improvements based on that.
Third Pillar is a partner of Syniti in the Philippines. If you want to get an assessment of your own data governance practices, download the Data Readiness Guide here: https://www.3rd-pillar.com/data-governance or request a consult <link to contact us>.