Organisations fail to measure the costs of information and system defects

Organisations fail to measure the costs of information and system defects

Companies are losing 20 to 30 per cent of revenue due to process failure, says consulting firm

Veronica Coyle from Altis Consulting

Veronica Coyle from Altis Consulting

Many organisations are failing to measure costs of information and system defects despite these issues being relatively easy to fix.

Principal consultant at Altis Consulting, Veronica Coyle, has termed the phenomena "death by a thousand cuts or, the fall and fall of information system quality".

Coyle said while daily issues with data systems may seem easy to resolve, the problems could be costly if businesses don't address them early on.

"Most organisations have never measured the costs of information and system defects. While there are a number of well documented examples where companies have suffered large costs from individual quality defects, these are generally not a daily occurence.

"However, the many, many system and data issues that are daily occurences have small costs individually and are therefore seen as relatively harmless. The combined cost of these quality defects is rarely considered or measured," Coyle said.

Coyle said while the small "cuts" to a business' data systems will not mean the end of the business, it does mean more profits are lost in the long term.

"The results of these thousands of small cuts may not be death for the businesses, but until organisations wake up and measure the costs and the impact on their bottom line, they will continue to bleed a little more profit every day," she said.

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