What is Data Quality?
Data Quality refers to the overall reliability, accuracy, completeness, consistency, and timeliness of data within an organisation. High data quality means that data is fit for its intended use in operations, decision-making, analytics, and AI. Poor data quality leads to flawed insights, failed AI projects, and costly business mistakes.
What is Data Quality?
Data Quality is the measure of how well data serves the purposes for which it is intended. High-quality data is accurate, complete, consistent, timely, and relevant. Poor-quality data contains errors, gaps, duplicates, outdated information, or inconsistencies that undermine its usefulness.
A simple way to think about it: if you cannot trust your data, you cannot trust any decision, report, or AI model built on top of it.
The Dimensions of Data Quality
Data quality is typically assessed across several dimensions:
- Accuracy: Does the data correctly represent reality? Is the customer's email address valid? Is the transaction amount correct?
- Completeness: Are all required fields populated? Are there missing records for certain time periods or regions?
- Consistency: Does the same data agree across different systems? If a customer's address is updated in the CRM, does it match in the billing system?
- Timeliness: Is the data current enough for its intended use? Yesterday's inventory levels are fine for weekly reporting but not for real-time order fulfilment.
- Uniqueness: Are there duplicate records? Multiple entries for the same customer inflate counts and distort analytics.
- Validity: Does the data conform to defined formats and business rules? Is the date in the expected format? Are product codes valid?
Why Data Quality Fails
Data quality problems rarely have a single cause. Common sources include:
- Manual data entry errors: Typos, inconsistent formatting, and incorrect selections in forms are among the most common sources of bad data.
- System integration issues: When data moves between systems through ETL processes, mapping errors, missing fields, or format mismatches can introduce quality problems.
- Lack of standards: Without clear rules for how data should be entered and maintained, different teams create data in different ways, leading to inconsistency.
- Data decay: Customer information changes over time. People move, change phone numbers, switch jobs. Data that was accurate when collected becomes stale.
- Mergers and migrations: When companies merge or migrate to new systems, data consolidation often introduces duplicates and inconsistencies.
Data Quality in the Southeast Asian Context
Businesses operating across ASEAN markets face heightened data quality challenges:
- Name formatting: Southeast Asian naming conventions vary significantly by country and culture. Indonesian names may not have family names, Thai names include royal titles, and Chinese names may appear in different orders depending on the system.
- Address standardisation: Address formats differ dramatically across markets, and many areas in Southeast Asia lack standardised postal addressing.
- Multi-language data: Product descriptions, customer communications, and operational data in multiple languages and scripts create consistency challenges.
- Marketplace data quality: Data from third-party marketplaces like Shopee, Lazada, and Tokopedia may have different quality standards than your internal systems.
- Mobile-first data: Southeast Asia's mobile-first internet usage means much data is collected through mobile interfaces, which can have higher error rates due to small screens and auto-correct issues.
Measuring Data Quality
You cannot improve what you do not measure. Practical approaches include:
- Data profiling: Automated analysis of datasets to identify patterns, anomalies, missing values, and statistical distributions.
- Quality scorecards: Define metrics for each data quality dimension and track them over time. For example: percentage of customer records with valid email addresses, percentage of transactions with complete address data.
- Automated validation rules: Implement checks in your data pipelines that flag or reject records that fail defined quality criteria.
- Regular audits: Periodically sample data and manually verify accuracy against source documents or real-world conditions.
Improving Data Quality
- Establish data ownership: Every critical dataset should have a clear owner responsible for its quality.
- Define quality standards: Document what good data looks like for each dataset, including required fields, valid formats, and acceptable value ranges.
- Automate validation: Build quality checks into data entry forms, APIs, and ETL pipelines to catch problems at the point of creation.
- Implement master data management: Create single, authoritative records for key entities like customers, products, and suppliers.
- Train your team: Ensure everyone who creates or modifies data understands why quality matters and how to maintain it.
- Monitor continuously: Track data quality metrics over time and investigate trends before small issues become systemic problems.
Data quality is the single most important factor determining whether your data investments, including analytics, reporting, and AI, will deliver value. Industry research consistently shows that poor data quality costs organisations between 15 and 25 percent of revenue through bad decisions, wasted time, and operational inefficiencies.
For companies in Southeast Asia pursuing AI adoption, data quality is an even more critical concern. AI models amplify whatever is in the data: if the training data is inaccurate or biased, the model's outputs will be inaccurate or biased. Many AI projects fail not because the technology is inadequate but because the underlying data is not good enough to produce reliable results.
At the leadership level, data quality should be treated as a business risk, not a technical issue. When your executive dashboard shows inaccurate revenue figures, when your customer segmentation is based on duplicate records, or when your AI chatbot gives wrong answers because it was trained on inconsistent data, the consequences are felt across the entire business. Investing in data quality upfront is consistently cheaper than fixing the downstream problems caused by bad data.
- Treat data quality as a continuous process, not a one-time project. Data degrades over time and requires ongoing monitoring and maintenance.
- Assign clear ownership for data quality. Without accountability, quality standards are rarely maintained. Each critical dataset needs a designated steward.
- Automate data quality checks in your ETL pipelines and data entry systems. Tools like Great Expectations, dbt tests, and Soda can automate validation at scale.
- Start with your most business-critical data. Improving quality in the datasets that drive key decisions delivers the fastest ROI.
- Measure data quality with specific, trackable metrics. Vague goals like "improve data quality" are hard to achieve. Targets like "reduce duplicate customer records to below 2 percent" are actionable.
- Factor in Southeast Asian data complexity. Name formatting, address standards, and multi-language content require region-specific quality rules.
- Budget for data quality in every data project. Allocating 20-30 percent of project effort to data preparation and quality is realistic for most initiatives.
Frequently Asked Questions
How much does poor data quality cost a business?
Research by Gartner estimates that poor data quality costs organisations an average of USD 12.9 million per year. For SMBs, the impact is proportionally significant: wasted employee time reconciling data, lost revenue from incorrect customer targeting, failed AI projects due to unreliable training data, and poor strategic decisions based on inaccurate reports. Even a small business can waste thousands of hours annually on data quality issues.
How do we assess our current data quality?
Start with a data profiling exercise on your most critical datasets. Use automated tools to check for completeness (missing values), uniqueness (duplicates), validity (format compliance), and consistency (cross-system agreement). Most cloud data platforms include basic profiling capabilities. For a more thorough assessment, sample records and manually verify them against source documents or real-world conditions.
More Questions
You do not need perfect data to start AI projects, but you do need good enough data. Assess the quality of data specific to your planned AI use case and fix critical issues before training models. For example, if building a customer churn prediction model, ensure your customer records are deduplicated and your transaction history is complete. Address the most impactful quality issues first rather than attempting a company-wide data cleanup.
Need help implementing Data Quality?
Pertama Partners helps businesses across Southeast Asia adopt AI strategically. Let's discuss how data quality fits into your AI roadmap.