3 Ways Data Issues Can Halt Your Business

Data has been crowned “king” and is frequently compared to the new “oil” and “gold” because of its ability to be mined and monetized to generate value and additional revenue streams for businesses. Data continues to grow in size and value, with IDC predicting that global data will reach 175 zettabytes by 2025, up 288% from just two years ago.

Today, many organizations are using Big Data to unlock key insights across industries. For example, technology companies use data to personalize user experience, private equity firms analyze data to assess companies more accurately, and even grocers use data to better manage food distribution and the chain. supply. The true value of data is that it can help organizations better understand customers, improve business processes and eliminate inefficiencies, help leaders make more informed decisions faster, and identify new business opportunities and to increase sales and revenue, which can provide them with a competitive position. advantage. The use of data pays off. Forrester Research has found that data-driven companies are growing more than 30% per year on average.

Governments have now joined with other industry sectors to take advantage of big data. Regulators around the world are issuing new Continuous Traction Control (CTC) mandates that allow them to connect to organizations’ data stacks in real or near real-time. In doing so, authorities may collect data associated with business activities relevant for taxation and other functions. On the other hand, failure to comply with these mandates can jeopardize business operations.

CTCs turn the world of retroactive audits on their head. Instead of relying on businesses to submit returns and provide historical evidence of transactions, CTCs allow governments instant access to authenticated transaction source data, improving visibility and accelerating tax collection efforts.

Implementing CTCs is just one part of a broader digital transformation strategy in which governments seek out all data that can be legally accessed for audits to be delivered to them electronically. But with that comes three major challenges that, if not addressed appropriately by organizations, can negatively impact business.

1. Data quality

Although more data is theoretically better, businesses cannot use it to its full potential because the data quality is poor. The Harvard Business Review estimates that only 3% of company data meets basic quality standards. And that can be costly, given that Gartner estimates that poor-quality data is responsible for $12.8 million in lost revenue each year for surveyed companies.

The biggest problem is that poor quality data often goes unrecognized until it’s too late, leading to lost business opportunities, higher costs, or in some cases even failure to meet requirements. tax. To maximize revenue, Gartner estimates that this year, 70% of organizations will track their data quality levels and improve them by up to 60% to reduce operational and cost risks.

2. Obstacles to data integration

The Gartner survey also showed that about one-third of companies rated integrating multiple data sources as one of their biggest challenges. The problem here is that there are disparate tools to manage different aspects of the organization, including payroll, invoicing, procurement, and sales. And it all needs to be integrated into a single source of truth to provide a unified view of the business.

Data is extracted from these systems in different formats, structures and types, resulting in tools that don’t speak the same language. Additional steps are then required to manually format, validate and correct the data – a time-consuming process that wastes resources and does not scale as the organization and the data it creates and consumes grows.

3. Efficient and cost-effective scaling of Big Data

Today, more than 40 countries around the world have set up CTCs. And most governments that have implemented Value Added Tax (VAT) will likely implement CTCs by 2030. Simply put, the government is now directly in the data stacks of businesses. For many companies, it is tempting to manage these mandates on a country-by-country basis by deploying a local solution provider to comply and keep up with the constant changes in a particular jurisdiction.

Although localized solutions can help solve problems specific to that region only, this approach can be expensive and unreliable. The cost of building, monitoring, and maintaining multiple local systems is prohibitive at best and extremely difficult to manage or get a consistent view of your overall compliance posture.

In today’s data-rich world, it’s important to not only focus on how data can be used to benefit businesses, but also how it can be applied to help the organization respond to government mandates with respect to tax data. By developing a comprehensive strategy to meet CTC mandates, enterprise IT leaders can ensure compliance with applicable laws and leverage high-quality, integrated data to set their business on the path to competitive success.

About Geraldine Higgins

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