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When good organizations use bad content

When we last met for our How to Cost Justify Your Social Knowledge Network Needs post, we explained how having the right information at the right time can return significant productivity gains. But what happens when organizations have the wrong information? Let's take a look as we move forward with our series.

Organizations amass extraordinary amounts of data as part of normal business operations. The quality of this content, as well as its relevance to both the organization and the individual worker can be, at best, dubious.

Studies conducted suggest that at least 25 percent of critical data within Fortune 1,000 companies continues to be inaccurate. According to Gartner analyst Ted Friedman, "Nearly every business function will have direct costs associated with poor data quality."

Organizations have hundreds of potential data sources. In your own daily life, you may come across news and media, payment information, legal and corporate filings, and industry directories. There are typically large costs associated with gathering data from third parties, so ensuring that the data is of high quality and relevance becomes an important cost consideration.

Quality and relevance of content plays a critical role in determining operational costs, especially when considering the consequences of poor quality. In a manufacturing organization, poor-quality product has the effect of increasing costs due to rework, Return Merchandise Authorizations (RMAs), increased support costs and compliance costs.

In much the same way, poor-quality content has the effect of significantly increasing costs. When poor-quality content is acted on in the absence of an understanding of its dubious nature, the cost effects can be huge. Next time, we'll show you how this plays out in an example illustrating the costs of low-quality content.

SKN Value Prop: Identifying and eliminating poor-quality content can increase productivity and reduce operational costs.

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