Consequences of Unrealized Productivity Gains

Going back to my firm’s example, had the customer service teams been involved in the initial development process, the productivity issue may not have ever existed, and the company would have realized significant productivity gains, or labor savings. For example, with an average customer service agent head count of 110, and an increase of approximately 8 contacts per day each, our firm could have reduced the customer service department’s head count by almost 14, saving the associated labor costs. Not only could there have been cost savings, but employee satisfaction could have been improved as well. Many customer service employees have left over the years due to frustration with our systems.

Since poor training can lead to under-utilized information systems that are poorly introduced, and poorly supported, the investment potential of the new information systems may not be realized.

Another consequence of a data rich, information poor company is poor decision making. Low levels of data integrity can be processed to provide incorrect information and in turn, incorrect or poor decisions. If the data quality is low, or is presented in a poor and unorganized way, decision makers may simply not use it at all, and thus, may be making decisions that are not optimal. This could have dire long term consequences for firms.