Data Rekeying: The Silent Killer of Operational Efficiency

The risks associated with rekeying data

Data is a vital asset for any organization. Data is collected and analyzed to make informed decisions, improve business processes, and enhance customer experiences. However, one of the most significant risks associated with managing data is the need to manually rekey data.

Manually rekeying data involves taking data from one source and manually inputting it into another system or application. While this process may seem simple, it comes with a host of risks that can negatively impact an organization's operations and bottom line. Today, we will take a look at some of the risks associated with manual data rekeying and what organizations can do to mitigate them.

Risk 1: Human Error

The biggest risk associated with manual data rekeying is human error. Even the most meticulous data entry professionals can make mistakes, leading to inaccurate data, which can impact the organization's decision-making processes.

Staff doing the data entry may accidentally enter the wrong data, transpose numbers or letters, or misspell words. Even a small error can have significant consequences, especially when dealing with financial or legal data. For example, a misplaced decimal point can result in an incorrect payment amount or tax calculation, leading to costly errors and potential legal liabilities. 

Risk 2: Time and Cost

Manually rekeying data can be a time-consuming and costly process. It requires staff members to spend hours manually entering data, which can take away valuable time from other strategic tasks. On occasions, organizations may need to employ additional staff to handle the data entry workload, leading to increased operational costs.

Additionally, data entry errors can result in wasted time and resources spent correcting mistakes. The cost of labor and resources can quickly add up, especially for larger organizations.

Risk 3: Data Security

Manual data rekeying can also pose a risk to data security as sensitive data can be exposed or lost during the data entry process. When data is manually entered, it may be susceptible to unauthorized access, theft, or misuse.

Manual data rekeying can make it more difficult to track who has accessed or altered the data, making it harder to detect and respond to security breaches.

Risk 4: Compliance and Regulatory Issues

Organizations that handle sensitive or regulated data, such as healthcare or financial data, must comply with strict regulations and guidelines. Manually rekeying data can increase the risk of non-compliance, resulting in hefty fines, legal action, and damage to the organization's reputation.

Risk 5: Lack of Scalability

Manual data rekeying is not scalable, meaning that it can become increasingly challenging for organizations to manage data as their business grows. This can limit an organization's ability to expand and take advantage of new opportunities.

Mitigating the Risks

To mitigate the risks associated with manual data rekeying, organizations can take the following steps:

• Automate data entry processes wherever possible to reduce the risk of human error and save time and resources.
• Invest in a solution that captures the data once, but then uses that data to automatically populate other systems.
• Provide comprehensive training to staff members to minimize the risk of data entry errors and ensure compliance with regulations and guidelines.

Manual data re-entry can be a risky process that can have significant consequences for organizations. By taking steps to mitigate these risks, organizations can ensure data accuracy, protect against security breaches, and comply with regulations and guidelines. Automating data entry processes, implementing a solution that captures the information once, but has the ability to populate other systems using that data captured, and providing training can all help reduce the risks associated with manual data rekeying.