Why is Data Accuracy Important to ROI?
In spite of a variety of industry studies and polls that attest to the importance of data quality for successful data warehousing and other business initiatives, business and technical managers are having a hard time justifying the cost of implementing data quality standards. The problem lies in a disconnect between the individuals who see data quality problems and decision makers who need to understand the bottom-line impact of data quality in their companies
Businesses lose revenue and reduce operating efficiency if data quality is not made a priority when dealing with assets and maintenance activities. Enterprise Wide Data Quality (EWDQ) is one of the most important criteria for project success. EWDQ unifies disparate pieces of information about any entity in the business sphere to enable a complete customer view. From customers to supply chains to products and physical warehouses, each business entity contributes to the bottom line. Having the most accurate and complete information is of the utmost importance to ROI.
Benefits of Data Accuracy
Not only does better and readily available data equate to a time ROI, but it can also equate to other types of benefits and efficiencies. For example, with the implementation of vAudit, you can start keeping an up-to-date traffic sign inventory. As part of that inventory, you may start tracking current conditions for all your traffic signs and using that data within vWork to prioritize your annual sign replacement program. Through a more methodical approach, you may be able to evaluate your sign inventory and current conditions against traffic accident data to see where your needs for better signage may help reduce the number of accidents. This information may be two-fold: increasing public safety and reducing the amount of property damage caused by accidents. Through this approach, your investment in vAudit and vWork has provided the ability to identify and replace more signs when they need replacing in a proactive manner, which may in turn reduce the number of traffic accidents, saving both citizens and the public money through the reduction of traffic accidents.
Migrating from reactive to proactive
It is well known that reactive maintenance takes more time, costs more money and sidetracks you from maintaining public infrastructure in a state of good repair (SGR). It has been well documented that it is cheaper to maintain an asset before you have problems than to react after a problem arises. It doesn’t make sense to replace an asset too soon, while it still has useful life and value left. It is equally inefficient to wait until an asset has failed, potentially creating issues with safety and level of service related to the infrastructure network. This often costs more to repair or replace than it would cost to maintain. Proactive asset management allows a reduction of the number of reactive incidents dealt with annually, thereby reducing the cost to maintain those assets in a state of good repair without impacting public safety or level of service (which has its own cost).
Cleaning a sanitary sewer line in a commercial restaurant district more frequently may reduce the number of sewer blockages and/or sanitary sewer overflows (SSO) that cost businesses money and potentially lost revenue. Lost revenue has a negative impact on local sales tax dollars received by the local agency. Increased levels of service by ensuring that infrastructure networks are maintained in a state of good repair can provide a community an economic ROI.
Increased levels of service
Driven by the human capital aspects of an operation, this can be one of the more challenging forms to quantify. If a sewer crew can increase the number of sanitary sewer lines it cleans annually and can use a maintenance management system to help identify those areas of the network that need to be cleaned more or less frequently, an agency can coordinate their efforts by understanding and aligning their big-picture needs with limited resources. This results in maintaining the right assets at the right time – before there is a problem in service. This in turn provides an overall increased level of service and can have a significant ROI in the areas of economic (not to be confused with financial), social and political ROIs.
Chances are that you’re going to find the numbers are on your side. While the financial benefits may not be apparent within the first couple of years, continued usage of your cloud mobile asset tracking system should show increased profits from a combination of savings across numerous departments and in how business is conducted overall, and the technology is only improving.
It takes work, some investment and time but it’s a process in which you’re going to want expert guidance. While it sounds like a lot of risk, the larger risk is not keeping up with the technology available to improve and grow your business. Let Ventureforth show you our mobile product suite and how it can help increase your ROI by being a single source of truth for whatever industry you serve. Fill out the form below to get started.