Active Cyber Blog

The Competitive Edge You’re Ignoring: Data Health as a Strategic Asset

Written by Mike Smoak | Jul 10, 2025 8:11:40 PM

Executive Summary 

In the modern business world, healthy data isn’t a technical luxury—it’s a strategic imperative. Overlooking even minor data issues can silently erode decision-making, operational efficiency, and even regulatory compliance. Early symptoms of illness shouldn’t be ignored, and neither should the warning signs in an organization’s data environment. 

Here’s how a regular data health check can protect, and accelerate, business growth. 

 

The Executive Imperative: Why Data Health Checks Belong in the Boardroom 
 

1. Data Drives Decisions—But Only If It’s Trusted 

Every major business initiative, whether it’s market expansion, M&A, or digital transformation, relies on data. Data is the foundation of successful organizational decision making. If that data is outdated, inconsistent, or misaligned, leadership risks making high-stakes decisions based on flawed assumptions or incomplete information. One study by Bell Porter found that companies missing financial projections can experience a 6–10% drop in stock value within just a few months. While the study doesn’t specifically cite data quality as the cause, the implication is clear: when projections are built on flawed or outdated data, the business impact can be severe. 

How can you be sure your data is trustworthy 

  • Designate a cadence (typically annually) for data health checks 
  • Require all critical reports, from operation to executive, to be built on validated, up-to-date data sources 
  • Differentiate between data sources that have been validated vs. not and only leverage the former whenever possible   
  • Assess your technical stack to ensure that, in addition to the right processes, the right tools are in place to maintain data quality  
  • Trust that, over time, a focus on maintaining high quality data will lead to better decision making  
  • Address data quality issues or concerns proactively, before small issues become big headaches 

2. Compliance and Security: The Cost of Inaction Is Steep 

Regulatory requirements with specific provisions around data including (GDPR, CCPA, SOX, and HIPAA) continue to grow more complex and failing to meet them can have real consequences. Misconfigured access controls, incomplete permission sets, outdated data structures, or countless other issues can lead to breaches, fines, and reputational fallout. Even a single stale report or overlooked permission can compromise compliance. 

Action: Assign clear ownership for data governance and require a compliance-focused review as part of every data health check. Include data security in executive-level risk discussions. 

Redundant dashboards, duplicated ETL jobs, and bloated data repositories can quietly drain IT budgets. Auditing a large organization’s production environment can lead to discovering tens or even hundreds of thousands of dashboards , most of them unused or duplicative. That can be indicative of inefficiencies that typically go unnoticed which leads to costs spiking and performance suffering. 

How can you protect against creeping inefficiencies? 

  • Help your IT teams by giving them the resources to adequately maintain their data ecosystem 
  • Encourage a culture of calling out issues that doesn’t lead to finger pointing 
  • Annualize conversations about how to best manage and leverage data 
  • Leverage your full technical stack and, if needed, expand it 
  • Tie a culture of good data to positive outcomes for the business and employees 
  • Highlight successful data initiatives to ensure that their value is recognized 

4. Customer Trust and Business Reputation 

Inaccurate or misaligned data can result in customer-facing errors including inaccurate reports, failing to meet SLAs, and an erosion of trust. According to a Thales study, “Global trust in digital services is decreasing or remaining stagnant at best, even among highly regulated industries“The message from customers is clear; any customer first organization needs to prioritize data management and protection. 

 
How can we ensure data is properly managed and secure? 

  • Control access to data following a zero-trust model 
  • Help your team by ensuring they receive regular training around data security best practices 
  • Evaluate what compliance standards matter to your customers regularly  
  • Candidly discuss potential vulnerabilities in how teams work with sensitive data 
  • Keep reviewing, upgrading, and testing your security frameworks so you stay current 
     

5. Agility and Innovation: Build on a Solid Foundation 

Digital transformation and AI initiatives demand flexible, dependable data systems. Outdated or fragmented architectures slows innovation, force teams into workarounds, and increase time to value. 

How can we support digital transformation as an ongoing process? 

  • Talk to a wide range of team members about what’s working and what isn’t 
  • Outline the process for updating legacy systems so that, when you’re ready, things move forward smoothly 
  • Delegate tasks like requirements gathering to team members to ensure no one person is overburdened  
  • Ask your peers and external resources what emerging trends they’re seeing in your industry  
  • Yearn to always keep growing and innovating 


What Does a Data Health Check Involve?
 

  • System Alignment Reviews: Ensure structures, permissions, and workflows match current business needs. 
  • Data Quality Assessments: Identify and remediate inconsistencies, redundancies, and legacy sources. 
  • Security & Compliance Audits: Validate access controls and regulatory alignment. 
  • Operational Efficiency Scans: Eliminate redundant dashboards, jobs, and inflated storage. 
  • Change Management: Assign accountability, document findings, and track remediation. 

How often should you consider a health check?: Annually, and following any major changes to either business processes or technical architecture.  

Final Word: Data Health Is a Leadership Priority

Healthy data underpins agility, resilience, and innovation. Treating data as a living system, not a static asset—positions organizations to lead, not lag.

 

 

Ready to Act?

If your organization hasn’t reviewed its data health recently, now’s the time. Treat data as the dynamic, strategic asset it is—one that needs regular care to drive performance, AI-readiness, and long-term value.