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The Power of Quality Data in Driving Business Success

  Niko Mangahas and Soubhagya Patra  ·  3 minute read

With data at the core of modern business strategies, organizations across industries leverage vast volumes of data to drive strategic decision-making, enhance customer experiences, and fuel digital transformation. However, challenges with ensuring data quality can lead to severe repercussions: financial losses, regulatory non-compliance, operational inefficiencies, and reputational damage.  

Data testing emerges as a fundamental discipline to ensure data quality, integrity and reliability. This approach mitigates risks and empowers organizations to harness data as a strategic asset.

Defining Data Quality
Data quality measures how well data aligns with business objectives. Key dimensions include:

 Accuracy
Represents real-world scenarios correctly

  Completeness
Ensures no essential data is missing

  Consistency
Maintains uniformity across systems

  Timeliness
Keeps data updated and relevant

  Validity
Adheres to organization’s rules and compliance standards

 

Why is Data So Important in Today’s Industry Landscape?

Data is the backbone of many businesses, influencing everything from decision-making and customer engagement to operational agility. Here's how three data-dependent industries leverage high-quality data.

INDUSTRY

APPLICATION

TASKS

Banking

 Ensure secure financial operations and protect against illicit activities.
  • Fraud detection
  • Credit risk assessment
  • Real-time transaction monitoring

Insurance

 Ensure insurers maintain profitability and improve customer service.
  • Risk assessment
  • Claims processing automation
  • Fraud detection

Healthcare

 Ensure better patient outcomes and regulatory compliance.
  • Patient record accuracy
  • Clinical research integrity
  • Predictive diagnostics

As AI, machine learning (ML), and automation reshape industries, ensuring data accuracy and consistency has become paramount to organizational success.

 

 

The Risks and Consequences of Poor-Quality Data

Neglecting data testing exposes organizations to significant challenges.

Organizations lose an estimated $12.9 million annually due to poor data quality.1

[1] Gartner, “How to Improve Your Data Quality” , July 2021

Poor-quality data (that includes inaccuracies, inconsistencies, and gaps) can result in costly mistakes, misleading insights, and strategic missteps that hinder business success.

CHALLENGES

RISKS TAKEN

CONSEQUENCES

Financial Losses

 Inaccurate data can distort financial reporting, lead to revenue leakage, and create billing discrepancies. Inaccurate financial records can affect shareholder confidence and the long-term viability of a business.

Regulatory and Compliance Violations

 The financial, insurance, and healthcare industries are subject to strict regulations. Non-compliance with GDPR, HIPAA, and AML can culminate in severe consequences.

Data inaccuracies can cause compliance breaches, resulting in significant penalties, legal issues, and reputational damage.

Deteriorated Customer Experience

Inaccurate customer data can cause service disruptions, miscommunications, and create ineffective marketing campaigns.

 Inaccurate data can trigger decreased customer trust and retention, as customers anticipate seamless, personalized experiences.

Operational Inefficiencies

Data inconsistencies can disrupt supply chains, delay product deliveries, and hinder essential business processes.

 Inaccurate inventory data can induce stock shortages or overstocking, both of which can negatively impact business performance.

Misguided Business Decisions

Organizations leverage data analytics as a vital tool for driving effective strategic planning and informed decision-making.

 Inconsistent or unreliable data can produce flawed insights and misguided corporate strategies, which ultimately affect long-term business success.

 

 

How Data Testing Drives Business Value and Ensures Data Quality

Data testing ensures data accuracy, completeness, and reliability throughout its lifecycle, from ingestion to business use. Evolving from manual SQL queries to automated ETL and big data testing, data testing now leverages AI for anomaly detection and predictive validation, while modern approaches seamlessly integrate continuous data testing into DevOps and CI/CD pipelines for real-time validation.

Robust data testing is essential for maintaining data quality standards. When data is validated throughout its lifecycle, businesses can not only prevent costly errors and enhance efficiency but also stay competitive.


Here are five key areas where data testing makes an impact in the banking, healthcare, and insurance industries:

  1. Informed Decision-Making: High-quality data empowers leadership with accurate insights, reducing the risks associated with flawed business decisions.
    • Banking: Ensures precise risk assessments for loan approvals
    • Insurance: Leverages accurate policyholder and claims data to evaluate risk exposure and determine optimal premiums
    • Healthcare: Validates patient records for better diagnoses and treatment recommendations
  2. Optimized Operational Efficiency: Eliminating data redundancies and inconsistencies enhances workflows and reduces operational costs.
      • Banking: Automates reconciliation processes for transactions, minimizing errors and inefficiencies throughout the organization
      • Insurance: Enhances speed and accuracy of claim adjudication
      • Healthcare: Streamlines billing and electronic medical record workflows through real-time data validation
  3. Regulatory Compliance Assurance: Reliable data is essential for complying with industry regulations and avoiding legal issues and financial penalties.
    • Banking: Ensures compliance with anti-money laundering (AML) regulations
    • Insurance: Maintains precise records for regulatory audits
    • Healthcare: Validates sensitive patient data to meet HIPAA requirements
  4. Superior Customer Experience: Enhanced customer data enables personalization, improving customer engagement and satisfaction.
    • Banking: Delivers personalized financial advice by examining behavioral and transactional data
    • Insurance: Uses customer risk profiling to offer tailored policy options, boosting acquisition and retention
    • Healthcare: Facilitates smooth patient experiences by synchronizing appointment, lab, and treatment records
  5. Improved AI & ML Accuracy: Clean, validated data strengthens AI and ML model performance, improving predictive accuracy and automation efficiency.
    • Banking: Enhances fraud detection models through accurate data inputs
    • Insurance: Predicts claim probabilities using ML
    • Healthcare: Trains AI models with validated patient data for predictive diagnostics

High-quality data is more than a technical necessity—it is a key driver of long-term business success and innovation. Whether in banking, insurance, or healthcare, the ability to trust and act on data with confidence is what separates industry leaders from those struggling to keep pace.

 


Data Quality + Integrity | The Key to Business Success

As businesses continue to evolve in an AI-enabled, digital-first landscape, data quality must remain at the core of strategic decision-making. Organizations can drive long-term success when rigorous data validation is embedded into everyday operations. Investing in robust data testing frameworks today prepares organizations for the complexities of a data-driven future, ensuring compliance, efficiency, and sustained growth. 

Don't let poor data quality put your business at risk. Explore how you can safeguard your success with Myridius Data Quality and Integrity. At Myridius, we bring extensive expertise in delivering end-to-end data quality and integrity testing solutions, ensuring your business harnesses the full potential of its data for success.


 

Connect with us to learn more about our Data Integrity Offering

 

 

Works Cited

Gartner, “How to Improve Your Data Quality” , July 2021