Governance Impact of Data Veracity on Data Culture
The key issue is that of data accuracy, where the problem is of data veracity. As a general rule, even in the best managed ERP systems, after a short while, we have issues with the veracity of up to 80% of the data, in that we cannot be certain whether the data are accurate or not, or by how much the data are in error. (This is the reason why you need to run data cleansing programmes from soon after the start of a nice shiny new ERP implementation).
The resulting governance issue is not that we shouldn’t use analytics on uncertain data, but we need to understand the veracity and the impact on management decision making of erroneous data. As an example, GPS location data has accuracy of between 1 metre and 1800km, but 85% is within 25m of the known location. The problem is with the other 15%. The governance question is what are the risks to the organisation using the location data if they use the more inaccurate data?
By: Richard J Self