Why data management has become a business essential
Businesses that handle data appropriately can react faster to market fluctuations, discover new opportunities for growth, and preserve profitable growth. Those that do not may lose out on information overload, information fragmentation, and being unable to answer crucial business issues. Due to the data management no longer being a back-office procedure, but a front-and-center one, it's time to learn why data management has become a business must. We are now at the stage where data management is evolving, and here's why it has become a key business strategy.
June 15, 2022
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Data is the lifeblood of any organization. Companies that manage data efficiently can respond faster to market changes, uncover new opportunities and drive profitable growth. Those that don’t risk facing an information overload, falling victim to information fragmentation and being unable to answer crucial business questions. With data management no longer a back-office function but a front-and-center priority for organizations of all sizes, it’s time to get up to speed on why managing data has become a business essential. Read on to understand how data management is evolving and why it’s now a strategic imperative for your company.
Data is the fuel for digital transformation
Data is the fuel that powers digital transformation. Organizations that fail to turn data into insights and actionable business decisions risk falling behind in this competitive landscape. That’s why businesses need to amp up their data-driven decision-making game by prioritizing the right data management practices. By focusing on the quality of data, its availability and the speed with which it can be analyzed, businesses can gain a clearer picture of their customers, discover new growth opportunities and drive profitable revenue. For instance, retailers use data to optimize pricing and conversions. Airlines use data to optimize flight schedules and design hubs. Airlines also use data to optimize crew scheduling and maintenance. Healthcare providers use data to dispatch paramedics or emergency rooms.
Data quality is a must-have for any organization
The problem with data, is that it’s not just growing in quantity, it’s also growing in complexity. It’s important to remember that not all data is created equal. Data quality is important as it helps organizations reduce costs, drive efficiencies and maximize the return on their investment. For data to be truly useful, it has to be accurate, complete, relevant and timely. This means that data has to be sourced, collected, cleansed, validated and catalogued in a way that makes it easily accessible across the organization. If your data is inconsistent and unreliable, it can actually be more harmful than helpful. It can lead to bad decisions, lower productivity and reputational harm.
Data management is essential for business growth
Data is this generation’s new gold. It has the potential to drive growth and fuel innovation. It can also be used to help companies drive efficiencies and reduce costs. But for data to be truly effective, organizations need to have a solid grasp of their data management strategy. They need to know what data they have, where it’s stored, who has access to it and how it can be put to good use. Unfortunately, this is where many companies fall short. Research shows that more than half of the organizations surveyed have issues with data quality. A whopping 82 percent of companies deal with information overload. And 77 percent don’t have a strategy for collecting and retaining data.
Data governance helps companies protect their most valuable asset
Businesses can take steps to protect their most valuable asset: data. By establishing a data governance strategy, you can protect your data and prevent it from falling into an information abyss. This is particularly important in today’s digital landscape, where data is being generated from a variety of sources, including machine-to-machine communications. Data governance acts as a guide for the handling and management of data to protect against information overload, information fragmentation and unplanned data growth. When you establish data governance, you can also help to reduce risks, increase data accuracy and improve compliance. And you can use data governance to implement a data management strategy that works for your organization. For example, you can use data governance to assign data owners to manage their related data assets, such as data types and data sources. You can also use data governance to create data policies and build a data architecture.
Data is a valuable asset, and one that needs to be managed effectively to get the most out of it. From data quality to data governance and everything in between, there are a number of ways to manage your data and ensure it’s properly protected and used to its full potential.