Published on the 03/03/2022 | Written by Heather Wright

You can’t mine data that’s not fit for purpose…

Supply chain disruptions have shone a glaring light on gaps in our supply chains – and both the data in them and the quality of that data. 

It’s an issue that transcends just the supply chain. From healthcare organisations planning for and dealing with the pandemic, to businesses adjusting to rapid business changes and changing customer demands, the pandemic has driven home the importance of business data and its quality. After all, if data is the new oil, just like oil, it needs to be refined.

Leveraging accurate data, from the front end to the back end, including supply chain and customer relationship management, plays a big role in increased agility, adaptability and resilience for businesses of all shapes and sizes.

“Local businesses understand the role data quality and management plays in improving CX and almost half plan to upgrade their CRM or ERP soon.”

But data management and data accuracy have been an issue for companies for decades and, according to a new survey, it’s an issue still very much in play across Australia and New Zealand, where 80 percent of businesses surveyed recently said inaccurate data hurt their ability to respond to market changes through Covid-19.

Local respondents also reported that 27 percent of their business’ data could be inaccurate. 

On the flip side, 75 percent of those who improved their data quality in the last year exceeded their business objectives, including improving customer experience, talent and workforce development and data security. 

“Accurate data is a cornerstone for business success, helping companies to minimise costs, make efficient use of resources and protect their reputation,” says Steve Philpotts, Experian A/NZ general manager for data quality and targeting. 

“Australian and New Zealand businesses have adapted well through the pandemic with an impressive number reporting greatly exceeding goals and expectations in a disrupted year. Leveraging accurate data plays a huge role in adaptability and resilience and it’s encouraging to see businesses in the region recognising this.”

But clearly there’s still plenty of work to be done. 

According to the Experian report, 2022 Global Data Management Research, improving customer experience is the top business priority for the next 13 months for 57 percent of companies, with 39 percent recognising poor data quality’s impact on it.

“The majority of local businesses surveyed understand the role data quality and management plays in improving customer experience and almost half plan to upgrade their CRM or ERP soon,” Philpotts says.

That’s a view supported by activity in the local market, says Hayden McCall lead consultant for Software Shortlist. “There’s been a notable increase in enquiry over the past year, both to us directly and anecdotally from partners. A common theme is that out-of-date ERP or CRM systems are to blame, which is often the case, but an underlying issue is that value chains, and business culture, have not been re-engineered around the value of high-quality data and efficient information flows.

System replacements are seen as one way to reset data quality and start to automate transactions across the business” he says.

Philpotts cites the example of eCommerce businesses needing accurate address information to deliver packages quickly – a critical component of the customer experience and driving repeat business. 

The report says the pandemic has pushed consumer contact data to ‘decay’ faster than ever. 

With more channels being used to connect with customers, there’s ever more data conflicts to manage. The Experian report says while email, phone, face to face and social media are the channels most relied on today, ‘tomorrow, organisations believe name and date of birth, location data, phone numbers and social media handles will be even more important’.

Creating a true view of a customer’s journey is essential to maintaining operational efficiency, and data quality is becoming a key driver in allowing large volumes of data to be actionable across an entire business and beyond. 

Last September, a survey from Oracle highlighted the increased demand companies are facing from customers when it comes to accurate data. 

The survey, albeit a US one, noted that people want brands to provide more regular updates about shipping status (63 percent), be more transparent on inventory (59 percent) and potential supply chain issues (54 percent) and offer refunds (56 percent) or discounts (52 percent) if items are delayed or cancelled. 

Those results highlight a key issue: The lack of transparency, visibility and communication about issues is often actually worse than the delays themselves. Eighty-one percent of people in that survey said they were prepared to pay a premium for smooth and timely delivery of items. Yet many companies, even the big name players, struggle here.

While improving customer experience might be the top business priority for Australian and New Zealand businesses in the coming year – as the Experian report attests – with managing talent and workforce development coming in second (at 47 percent), a full 86 percent say that a lack of data skills is hampering agility and flexibility within their organisation. 

“Businesses across the region recognise the growing importance of data expertise,” Philpotts says.“The research shows local businesses prioritising hiring data quality analysts, data analysts and data engineers in the next six months.”

The Experian results align with MYOB’s 2022 Mid-market Snapshot, reported by iStart this week which also highlighted supply chain issues as a top concern for A/NZ organisations, creating high demand for new ERP and CRM systems.