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Evidencia 3

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Joselin Rubi
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20 views1 page

Evidencia 3

Uploaded by

Joselin Rubi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Do you trust your data?

Data is the new oil. Data drives fact-based decisions. As a manager you are going to rely on data to
drive your business decisions. Can you imagine making a critical business decision on bad data?
Have you ever stopped to ask yourself if you trust your data? What will happen if you make a
business decision on incorrect, inaccurate, or low-quality data? Obviously, chances are high you
will make the wrong decision, and that is the primary risk when using data to drive your decisions.

Here are a few examples of organizations that fell into the trap of making important decisions on
incorrect data.

Fidelity: A missing negative sign on a dividend report cost this financial company $2.6 bilion.

Harvard: Two professors reached an incorrect conclusion with an average formula that failed to
pull of the data.

London Olympics: An accidental typo of 20,000 instead of 10,000 cause the sale of 10,000
additional tickets for the synchronized swimming event.

MI5: The British intelligence agency accidentally bugged more than 1,000 wrong telephones based
on a formatting error on a spreadsheet.

TransAlta: This Canadian power company made a simple cut-and-paste error for buying power at
the wrong Price, which cost it $24 million.

University of Toledo: A typo in a spreadsheet formula led to an overestimate of enrolment,


overinflating revenue by 2.4 million.

There is a famous saying in the tech industry: “Garbage in is garbage out” (GIGO). I can be the
greatest data analyst in my company, but if the data I am analyzing is wrong, then my analysis will
be wrong. But many of us forget to ask about the quality of our data, and we respond too quickly
and confidently. There is a common statistic stating that over 80 percent of spreadsheets have
errors. Why are there so many errors in spreadsheets? It is simple. Spreadsheets are created by
people and people make mistakes! It is important to remember that you should never assume that
you have high-quality data. You should always do the upfront work to verify the quality of your
data. This Will require a great deal of work before you even begin your analysis but can pay off
tremendously as you make decisions with greater confidence.

Bad data is costly. With data driving so many decisions in our lives, the cost of bad data truly
impacts us all, whether or not we realize it. IBM estimates that bad data costs U.S. businesses over
$3 trillion yearly. Most people who deal with data realize that bad data can be extremely costly,
but this number is truly stunning. The majority of businesses analyze customer data, but there is a
little chance of the business succeeding if the data is wrong.

1 What is data and why is it important to a business?

2 Why do you believe data can be inaccurate?

3 What can a business do to ensure data is correct?

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