Data, whether it’s internal or external, is becoming an increasingly important part of business operations. However, sourcing this type of data can be a challenge for companies, no matter the industry or size.
In this article, we will discuss the five common challenges that businesses face when trying to obtain external data. Let’s get started!
Challenge #1: Determining the Quality of Data
One of the biggest challenges companies face when sourcing external data is determining the quality of that data. This can be difficult to navigate for a few reasons:
First, you need to know what factors to look for in order to determine the quality of the data. Second, not all data providers offer information on the quality of their data. And third, even if a provider does offer this information, it can be difficult to assess and compare different sources of data.
Challenge #2: Determining the Accuracy of Data
Another challenge companies face when sourcing external data is determining its accuracy. This important aspect could be a little tough for a few reasons:
First, it can be hard to determine whether the data is accurate or not. Second, even if you can determine that the data is inaccurate, it can be difficult to identify where the inaccuracies are. And third, some data providers do not offer information on the accuracy of their data.
Challenge #3: Determining the Timeliness of Data
Another one of the challenges faced by companies sourcing external data is determining its timeliness. This may not be easy for a few reasons.
First, it can be hard to determine whether the data is timely or not. Second, even if you can determine that the data is not timely, it can be difficult to identify when the data was last updated. And third, some data providers do not offer information on the timeliness of their data.
Challenge #4: Determining How Much Data Is Available
Another challenge companies have to tackle when sourcing external data is determining how much data is available. It’s possible that it could be difficult for a few crucial reasons:
First, it can be hard to determine the volume of data that is available. Second, not all data providers offer information on the amount of data they have. And third, even if a provider does offer this information, it can be difficult to assess and compare different sources of data.
Challenge #5: Determining the Cost of Data
Last among our list of the common challenges companies go through when they source external data is determining the cost of data. This could be difficult, as the following reasons suggest:
First, it can be hard to determine how much data costs. Second, not all data providers offer information on the cost of their data. And third, even if a provider does offer this information, it can be difficult to assess and compare different sources of data.
If you’re currently sourcing external data for your business or are thinking of doing so in the future, it’s important to be aware of these common challenges. By understanding and preparing for them, you can avoid any nasty surprises further down the track.
