We rely on data to make hundreds of business decisions every day, ranging from the seemingly inconsequential to the potentially monumental. The sum of these decisions can be the difference between success and failure. But too often we are working with incomplete, inconsistent, or even incorrect data from which few, if any, actionable insights can be discovered. Our shareholders rely on us to make the best possible decisions. We need accurate, up-to-date information to select the best choice and bring the most value.
Data enrichment helps solve this problem.
Data enrichment is a process by which your company's data is cleansed, updated, and standardized. Industry best practices advise regular data cleansing and data enrichment to ensure accurate, reliable data.
Let's look at some specific ways data enrichment benefits your company and increases shareholder value.
Implementing data-driven decision-making can only show a return on investment for businesses if you’re asking the right questions about the right data. When you're working with reliable data, you can set better goals for your organization.
The goals you develop for your company should be specific and address what’s important to you and to your stakeholders. Your bottom line will drive many of your goals, as will your corporate values.
Maybe you want to streamline your supply chain by reducing redundancies to achieve cost savings. You need a clear picture of not just your suppliers, but how they are connected to each other. Data enrichment can help identify information such as M&A activity and joint ventures, as well as parent-child family linkages.
Perhaps you have a sustainability goal related to increasing the number of local, diverse suppliers in your supply chain. Data enrichment allows you to identify suppliers by geographic location, NAICS code, size, revenue, and more.
As we've seen over and over, setting better, more relevant goals delivers better results and more value. Use data enrichment to drive goal-setting that strengthens your company and gives shareholders confidence in your success and longevity.
Data enrichment puts you in a much more competitive position. When you can trust the integrity of your data, it helps you identify potential suppliers who bring innovation and creative solutions to your supply chain. Reliable data helps you mitigate risk by identifying redundancies, weaknesses in your supply chain, lapsed certifications, or potential issues when a supplier's profit/loss is out of balance or a merger is on the horizon. Quality data can also help you achieve cost savings by identifying less costly suppliers or leveraging relationships with current suppliers.
For example, suppose you wish to audit your supply chain. Data enrichment assigns accurate supplier classification codes, including SIC and NAICS, enabling you to search, track, and report on suppliers based on standard categories. Use that data to identify your top 10 categories ranked by spend, record count, or geographic region. Now you can assess any redundancies that may be increasing costs or identify overreliance on a specific supplier—a potential risk.
Data enrichment transforms supplier information into supplier intelligence—empowering your organization to make confident procurement decisions. Accurate, reliable, timely data allows you to confidently make strategic decisions that maximize expected value.
Our shareholders—and our internal stakeholders—want value-relevant information. Enriched data means you can produce reports with confidence in their accuracy and relevance, enabling you to share progress toward your goals or propose new ventures.
Suppose you want to invest in a new program—such as supplier diversity—that doesn't show an immediate ROI, but you know has long-term tangible and intangible benefits. Gaining executive and shareholder buy-in will require advocacy, a clear plan for implementation, and reliable data that proves how supplier diversity will increase competitiveness, innovation, and revenue.
We operate in a data-driven world; shouldn't we make sure the information we use to make decisions is as accurate, reliable, and timely as possible? Data enrichment is an important step toward ensuring that your organization is operating with optimal information so you can deliver optimal value to shareholders and customers alike.