The Importance of Maintaining Data Quality: Establish Good Data Governance Strategies

CIERTO PIM
  • Data Management

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Do you really understand what “data quality” is? Most of you may not have a solid answer, as in reality, surprisingly only a few companies have begun to seriously address the "data quality" that serves as the foundation for their business. No matter how sophisticated your analytical tools or AI may be, if the underlying data is flawed, the resulting insights will be equally flawed.

In this blog, we provide a clear explanation of data governance—a concept and practice directly linked to corporate growth. We will explore it through the critical lenses of the importance of maintaining data quality, and the way to manage your data.

1. Data Quality: What are the problems if we neglected it

Marketing, sales, e-business, supply chain… everywhere you need “data” to support your work. The volume and variety of information managed daily continues to grow, encompassing not only personal data like customer attributes and behavioral history but also product specifications, pricing, inventory, and promotional details.

However, in many cases, the information is not being governed correctly. It is common to see companies manage the data of several departments across fragmented Excel sheets and individual folders. In this case, there is no way to maintain the data integrity and it may have the problems below:

i. Losing Customers Through Data Inaccuracy
“It is not a big deal even if I did not manage my data properly, isn’t it?” You should change the way you think immediately. In fact, bad data quality is always the origin of a vicious cycle.

First, if there are errors or omissions in critical data (dimensions, materials, compatibility, etc.) for your product, customers will quickly develop a sense of distrust toward the brand and abandon their purchase. Furthermore, inaccuracies in specifications may cause customer complaints and refund, which creates an unnecessary burden on customer support and warehouse operations.

Recently, the accuracy of product information is considered a core part of the "pre-purchase customer experience". If a competitor provides clearer, more reliable data for a similar product, users will migrate to them without hesitation. Never oversights any miss of your product data: low data quality acts as a hidden catalyst for declining sales.

ii. Degraded Customer Experience and Brand Reputation
Consistency and accuracy of the product information is the core of business. If a corporate website lists a product as "In Stock" while the online shop shows "Backordered," the customer will be unable to determine the truth, and lose confidence in the brand.

Moreover, if promotions are launched with incorrect product data, the company is forced to issue corrections and apologies. This not only wastes advertising and printing budgets but also requires immense effort to repair damaged customer relationships. In the digital age, every single piece of information, no matter if it is true or not, will be widespread on each social media platform. Any negative information potentially causes long-term damage to brand image. A brand is built not just by its logo and design, but by the integrity of its information. Therefore, managing data quality is an essential component of reputation risk management.

iii. The "Hidden Costs" That Sabotage Decision-Making
Poor data quality gradually poisons corporate decision-making. For example, if procurement decisions are based on master data that does not accurately reflect inventory levels, it leads to either excess stock or lost opportunities. Similarly, if the sales performance data used for market analysis contains duplicates or omissions, formulating an effective strategy becomes impossible. While these failures may appear to be simple "errors in judgment," the root cause is often found in the quality of the underlying data.

Furthermore, when departments operate based on conflicting information, it leads to frequent miscommunications and rework, degrading the precision of internal collaboration. The time spent on internal adjustments and corrections accumulates as a "hidden cost".

So, what should we do? The most critical action you have to take is to have good “data governance”.

2. The nature of Data Governance

First, we should understand what “data governance” is. There are 3 critical points for “data governance”:

i. "Maintaining" Data Quality
Maintaining Data Quality, in other words, maintaining the usability of the data sustainably. data is constantly being added, modified, or deleted across multiple departments and external partners. This perpetual flux makes it essential to design a governance framework that controls quality fluctuations. “Maintaining” is not only managing the master data, it also requires defining who handles information, when, and under what rules, and ensuring all the participants in the organization understand and perform the same rules of data usage.

ii. Governance: Clarifying Responsibility, Rules, and Workflows
The term "governance" often carries a rigid connotation of legal compliance or corporate oversight. However, data governance is highly pragmatic: it is the act of clarifying information management rules and sharing them across the board.

The backbone of governance is built on an accumulation of small, specific rules. Vague rules lead to the occurrence of errors and omissions, which greatly affect the working process. Tt is vital to assign clear accountability and define roles for every data point and process. Governance should function as a blueprint that visualizes the connection between people and information, bringing order to the organization.

iii. Transitioning from "Individual Dependency" to "Systemic Reliability"
Many companies suffer from siloed expertise, where business knowledge and data operations are concentrated in specific individuals. While it seems efficient in the short term, it poses a severe operational risk if there are resignations, transfers, or leave, leading to bottlenecks and handover problems.

To break away from this dependency, data management rules must be woven into the fabric of the organization's systems. It involves visualizing the data update flows, documenting manuals, and enforcing consistency through automated workflows. When systems and processes are unified, the organization achieves a state where quality remains consistent regardless of the operator. Moving away from individual dependency is, in essence, the evolution of transforming personal "know-how" into "corporate assets". Implementing data governance is the key driver of this transformation.

3. PIM: The Best Way of Data Governance

In order to have proper data governance, we recommend you to have PIM (Product Information Management System) to have a comprehensive management of all your product data. Here are the expected outcomes of introducing PIM:

i. PIM: Centralizing Information and Streamlining Multi-Channel Distribution
PIM is designed to aggregate all product-related assets including spec, price and product images, and optimize them for various outputs such as EC platforms, catalog or social media platforms. By centralizing registration and updates, companies can drastically suppress data inconsistencies, input errors, and version conflicts. Furthermore, PIM facilitates global expansion and accelerates promotional activities by adapting data to channel-specific formats and languages. PIM serves as a critical infrastructure that ensures data consistency and operational efficiency.

ii. Standardizing Operational Rules through Automated Workflows
By integrating workflows, companies can standardize and automate business processes, from initial data entry, to quality assurance final approval. This structure eliminates redundant rework and dependency on specific individuals. And the history tracking feature enables rapid error detection.

iii. Achieving Information Authenticity and Fast Working Speed
By linking PIM with automated workflows, the status of every asset remains transparent. It creates an environment where internal and external stakeholders have instant access to "trusted information" they can use without hesitation. Beyond avoiding individual dependency, this framework fosters cross-departmental collaboration and boosts the overall velocity of information flow.

The ideal state of information management is not merely having organized data, but having a systemic mechanism that ensures the right information reaches the right person at the right time. To achieve this, the combination of PIM and workflows is currently the most vital strategic investment.

4. Using CIERTO PIM to Achieve Good Data Governance

CIERTO, developed by VPJ, is a comprehensive digital content management platform that seamlessly integrates PIM and DAM. CIERTO links product information, creative assets, and operational processes (approval workflows) on a single foundation. Images, videos, and manuals stored on DAM are tethered directly to the product master, allowing users to track exactly which assets are being used across which media. Furthermore, CIERTO offers flexible system design and granular permission management, allowing for a customized setup that aligns with each company’s specific operational rules.

Marketing, Sales, Product Planning, E-commerce, and Design Team, all of them can utilize CIERTO as a shared platform for data and workflow management, everyone works from the same source of truth within CIERTO. This drastically reduces communication overhead and transmission errors. Additionally, secure access can be granted to external partners, balancing centralized management with efficient collaboration. CIERTO provides a pragmatic operational environment that guarantees data accuracy without sacrificing business velocity.

In fact, CIERTO boasts a diverse track record of implementations across manufacturing, retail, distribution, publishing, education, finance, and travel. This extensive experience provides VPJ with deep insights into the unique information management challenges and workflows of various sectors. CIERTO empowers companies to improve data quality and solidify governance through both its robust technical framework and dedicated professional support.

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VPJ Editorial Team brings you the latest information of DAM and PIM, and a new perspective of project management.

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Our core products, CIERTO DAM and PIM helps you to manage, product and distribute data in the smartest way.