More for less: Calculate Now Your Company’s Potential Cost Reduction
The collaborative approach of our Data Management Services brings significant direct benefits. As can be seen in the calculation example, the CDQ Data Sharing approach provides companies with better data quality at lower costs. It is based on the "First Time Right" effect in data creation and the "Zero Maintenance" effect in data maintenance. In addition to the cost reduction as a direct benefit, companies also profit from the indirect advantages: The higher data quality in business processes improves process and decision quality and minimizes risks.
Our calculator helps you to quickly and easily determine the cost saving potential of your company in data management when using our services.
The "first time right" effect refers to the known first time right principle. The idea of this concept is to ensure correct data creation from the beginning of the data entry process. The creation of incomprehensible, imprecise, or incomplete data sets results in a source of error that quickly multiplies and is very laborious and costly to correct.
With the help of CDQ Data Management Services and its Data Sharing approach, first time right is easily achieved. During the process of creating customer and supplier master data, employees can access validated data sets through a lookup function. This allows companies to automate the process to a large extent.
The idea of "zero-maintenance" refers to the elimination of the maintenance effort. True zero maintenance of data may not be easy to achieve, but there are already ways to get closer to this goal. A faster and automated implementation of changes in data sets is a step in the right direction.
With CDQ DQaaS services, users receive proactive updates of business partner data. If a user accepts these changes, they are copied automatically into the user's system. In addition, when changes are requested, users can access data records from the data pool at any time and transfer this information into their systems.
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How did we calculate this numbers?
The calculations are based on a professional article on "Data Sharing in Business Ecosystems", which will be published in a renowned business journal at the end of the current year. Authors of the article are Prof. Dr. Christine Legner (Academic Director of the Competence Center Corporate Data Quality (CC CDQ) and Professor for Business Informatics at the Faculty of Economics of the University of Lausanne in Switzerland) together with Dr. Kai Hüner (Chief Technology Officer of CDQ AG), Dr. Simon Schlosser (Head of Product of CDQ AG) and Dr. Dimitrios Gizanis (Chief Executive Officer of CDQ AG).
In this article the authors discuss how the principles of the Sharing Economy can be applied to data and show the direct and indirect benefits of data sharing: The collaborative management of data reduces the data life cycle costs, i.e. the effort for data creation and maintenance as well as the costs of the quality assurance infrastructure. The improved data quality has positive, indirect benefits on all areas of the company that work with business partners, i.e., primarily purchasing, marketing, and sales.
In connection with direct benefits, the authors speak of the following savings effects: "first time right", "zero maintenance" and "IT pooling".
They have illustrated these using a sample calculation with empirical values. These are based on globally active companies that store large amounts of business partner data in their operational systems and standardize them globally. For their calculation, the authors assume approximately 190,000 data records, divided into 60,000 customer and 130,000 supplier data records. The authors use an overlap of 43 % between own data records and the data pool because, from experience, this is often between 20-60%. The authors refer to 3 minutes that are needed on average to maintain or create data (including research time) for each data field in the traditional way, and they calculate with 0,5 minutes using CDQ services.