What is the purpose of data cleansing?

The purpose of data cleansing is to ensure accurate and reliable data. This process involves identifying and correcting errors, inconsistencies, and inaccuracies within datasets. By doing so, organizations can trust the data they rely on for decision-making, reporting, and analysis, which is crucial for effective contract administration and management. Accurate data enhances the overall quality of insights gained from data analysis, thereby supporting informed decision-making and strategic planning.

In this context, the focus is on producing datasets that reflect true and reliable information, which directly supports various business functions, including compliance, performance measurement, and strategic initiatives. Validating sales predictions, enhancing negotiation strategies, or assessing product performance are all secondary benefits that rely on the foundational accuracy provided by effective data cleansing.