Only four out of 10 C-level executives are “very confident” that the data their organizations use is data whose quality they can count on, according to a study from 451 Research. That doesn’t say much for the majority of businesses, particularly when 94 percent of senior leaders worry that poor data quality leads to limited information and, “…lost revenue or bad strategic decision-making."
As CIO magazine’s Clint Boulton observes, problems with data quality often result from a disconnect between those who gather, clean and report the data, such as the CIO, and the line of business (LOB) managers throughout the organization who are actually accountable for it. When these two groups don’t collaborate on important data such as performance metrics, important checks and insights are overlooked. And that leads to business decisions based on bad business data.
It doesn’t have to be that way. Laredo Petroleum, which operates more than 1,000 wells in the Permian Basin of Texas, has created a planning and forecasting environment led by its CIO that gives every stakeholder an opportunity to make decisions based on the same set of data. Traditionally, Laredo Petroleum supervisors and foremen had to wait up to two weeks to learn how much revenue a particular rig was producing or whether it made financial sense to continue or stop drilling on a site. With oil prices near record lows, the ability to answer these questions is more crucial than ever. Fortunately, managers and field personnel alike now can access their planning environment from virtually any device to get answers to those questions immediately, enabling them to save expenses by taking the right actions sooner.
When CIOs and others who “own” performance data can work with those managers whose functions have to rely on it, great things happen. And before long, those C-level executives can cross data quality from their list of worries.