MADE A BAD DECISION SOFTWARE
MADE A BAD DECISION SERIES

Potential borrowers labeled as 'risky' based on flawed data could find that ' algorithmic bias' sticks to them.

Instead, these brokers are in a volume business. Much of the data is purchased from data brokers that operate with little oversight and no incentive to maintain quality data. Financial companies now rely on big data tools that vacuum up information from retail purchases, travel habits and even social media. If the data fed into credit-scoring algorithms is flawed, problems can pile up quickly.

MADE A BAD DECISION SOFTWARE

Human error, currency miscalculations and software glitches have all generated mistake fares, presenting airlines with a Catch-22: They can either lose revenue honoring the mistake fares, or they can generate bad PR when they don't.Ī more pervasive example of how bad data can affect business, one that potentially touches every consumer, is credit scores.

MADE A BAD DECISION SERIES

In the airline industry, bad data causes problems so frequently that travel experts scour booking sites for ' mistake fares.' The bad data that triggers mistake fares come from a variety of sources, making a recurring pattern look like a series of disconnected, one-off accidents. Mistake Fares, Algorithmic Bias And Flawed Credit Scores In practice, data access alone won't provide the lift. Increasing data accessibility could well benefit Fortune 1000 businesses in theory. A recent study on the lack of trust around data from research firm Vanson Bourne (commissioned by SnapLogic) found that 91% of IT decision-makers believe they need to improve the quality of data in their organizations, while 77% said they lack trust in their organization's business data. Forrester also found that ' less than 0.5% of all data is ever analyzed and used' and estimates that if the typical Fortune 1000 business were able to increase data accessibility by just 10%, it would generate more than $65 million in additional net income.Ī word of caution: There are many reasons data utilization may be low. Similarly, Forrester Research has found that the persistence of low-quality data throughout enterprise systems robs business leaders of productivity, as they must continuously vet data to ensure it remains accurate.

Made a bad decision