$3.1 trillion. That is how much IBM estimates the yearly cost of poor quality data. This is despite companies spending billions already to maintain their data.
According to the Harvard Business Review, what makes up that mammoth figure is the “Hidden Data Factory” in which data users waste time dealing with error-prone data, correcting flawed data, etc. If this is the case for non-asset-intensive companies, poor quality data is like a virus for asset-intensive companies and most likely a huge portion of the $3.1 trillion figure.
Poor Data and High Costs from an Asset-Intensive point of view
Poor quality EAM and CMMS data will lead to an increase in maintenance costs. If companies typically spend around 5-10% of their annual revenue on maintenance, think about how much you’ll have to spend if you have to constantly pay for reactive maintenance. Not to mention, reactive maintenance is 2-5 times more expensive than planned and predictive maintenance! If your data is inaccurate, it is hard to find critical spare parts, especially when those parts are urgently needed. This can also drive up your maintenance costs drastically. Your company will also face issues such as having an incomplete preventive maintenance plan and task descriptions.
When experienced workers of your company retire, obviously you have to fill the gap they leave behind by having thoroughly documented maintenance plans and work instructions. These systems lay the foundation for information that companies need in order to support the next generation workforce. If you don’t leverage all the information that is required, your company will be at risk of incomplete and inaccurate data! Your company will not be able to create comprehensive maintenance plans and strategies, nor will you be able to set best practices for maintenance plans that can be adopted across the enterprise.
Fix Poor Quality Data Today!
NRX AssetHub provides asset-intensive companies with a software platform designed to help them quickly and easily identify and repair the gaps and inaccuracies in their asset and maintenance data in their CMMS or EAM systems. Our customers rely on our solutions to help guide them through the complex process of rectifying differences between their physical assets and what is digitally represented in their CMMS or EAM system. In other words, NRX AssetHub is a data-cleansing solution that makes it easy to repair and redeploy the critical data that our customers need to effectively maintain and operate their assets.
Is your company a part of that $3.1 trillion figure? Contact us at 1-877-603-4679 or book a demo today!
Download our NRX AssetHub brochure here!
Sources:
Redman, Thomas C. “Bad Data Costs the U.S. $3 Trillion Per Year.” HBR.org. October 04, 2017. Accessed March 19, 2018. https://hbr.org/2016/09/bad-data-costs-the-u-s-3-trillion-per-year.
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