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What is Data Quality?
Data Quality refers to the degree to which data is accurate, complete, consistent, reliable, timely, and fit for its intended purpose.
Definition
Data Quality is the measurement and management of how well data meets established standards of accuracy, validity, completeness, consistency, timeliness, and relevance to support decision-making and operational processes.
Key Takeaways
- Ensures data used in analytics and operations is trustworthy.
- Evaluates dimensions such as accuracy, completeness, and consistency.
- Reduces errors, inefficiencies, and costly business decisions.
- Foundational for AI, reporting, compliance, and automation.
Understanding Data Quality
High-quality data fuels effective business decisions. When data quality is poor, organizations face reporting inaccuracies, customer issues, financial mistakes, and flawed analytics.
Core dimensions of Data Quality include:
- Accuracy – Data reflects real-world values.
- Completeness – No missing or partial data.
- Consistency – Data matches across systems.
- Validity – Data follows rules and formats.
- Timeliness – Data is up to date.
- Uniqueness – No duplicate records.
Improving Data Quality involves validation rules, cleansing processes, governance frameworks, stewardship roles, and modern data tooling.
Importance in Business or Economics
- Ensures trustworthy analytics and decision-making.
- Reduces operational and financial risks.
- Improves customer experience and personalization.
- Supports regulatory compliance and audit readiness.
Types or Variations
- Operational Data Quality – Ensures reliability for daily processes.
- Analytical Data Quality – Ensures accuracy for reporting and models.
- Master Data Quality – Ensures consistency of key business entities.
Related Terms
- Data Cleansing
- Data Governance
- Data Stewardship
- Master Data Management (MDM)
Sources and Further Reading
- DAMA-DMBOK: Data Quality Management
- Gartner: Data Quality Frameworks
- Harvard Business Review: Hidden Cost of Poor Data Quality
Quick Reference
- Accuracy + completeness + consistency
- Foundation for analytics, AI, and operations
- Requires validation, cleansing, and governance
Frequently Asked Questions (FAQs)
What causes poor data quality?
Human error, system integration issues, missing data, inconsistent formats, and lack of governance.
Is Data Quality a technical or business issue?
Both, technical teams manage pipelines, but business teams define meaning and usage.
How do companies measure Data Quality?
Through rule checks, profiling tools, audits, and data quality KPIs.
