Companies that are not familiar with the significance of data management are not likely to survive in the long run when you consider the modern economy. Data is the most valuable asset and to make your organization data-focused, you have to understand data management in depth. Data is the basic principle of a business and the foundation of knowledge, information, and the basis on which the judgment of correct decisions depend. With relevant, complete, accurate, and meaningful data, opportunities for growth are created within the organization. Data that is useless proves to be a liability for a business. Therefore, a business enterprise should go for data management initiatives to enhance the quality of the data. It is also essential to manage the data cycle as data is created, maintained, stored, or even destroyed.
Need for data management strategy
Today, big data has entered into executive meetings and is an essential aspect of business practice that a majority of business organizations use. Over the years, businesses have become aware of the valuable insights they can gain from data analytics and are gathering a huge amount of data. Despite the importance of data, various companies are yet to locate a proper data governance strategy and data collection is just a method they follow. Having plenty of data and big data is entirely different. Collecting business data is not just for practice and using it in the future without proper planning is not only a bad practice, but results in enhanced cost and problems for the company. What are the problems that your company may face in the absence of a proper data management strategy?
● Storing data is costly
Even though the price of data has reduced during recent years, the lack of a proper strategy can lead to increased costs. Due to the low cost of cloud storage, the organizations may be tempted to store a majority of data, and it may appear that everything in the organization is within the control. However, as an organization acquires more data over the period, the database is filled with legacy data that may have lost its usefulness long ago. With more backups of the existing backups, it becomes increasingly expensive for the companies to maintain the database. All this can create a dent in the budget of the IT department.
● Possibility of restructuring data
Restructuring is the way in which businesses can change the data that is physically or logically stored. Certain reasons lie behind restructuring the existing data. It is often done to improve the performance of data, facilitate data processing, and increase storage utilization. With so many problems, it becomes nearly impossible to restructure data or even consider it as an option. If businesses are unable to take decisions that are difficult yet necessary, effective utilization of data is a far cry. Instead of restructuring the existing data, they must go for data governance consulting to know how to make the best use of data.
● Valuable insights
For gaining valuable insights into consumer preferences, data generated through research or activities is often used. It may be a compelling task for the companies to believe that gathering more data and increasing the numbers can result in better approaches, but it is far removed from the truth. As far as data analytics is concerned, more data is certainly not the way to getting more valuable insights. As a matter of fact, more data simply means there are higher chances of using wrong datasets required for analysis. Several companies fall prey to this baseless strategy and collect more data than necessary.
● Implementation of data analytics is difficult
Performing data analytics is impossible without proper understanding of data such as locating the source of data, the type of data that have been collected, and the way in which it is stored. However, it is tough to conduct a huge audit for a small database to find out what is relevant and what is not. Moreover, when dealing with volumes of data, the process can become complicated. Due to the involvement of huge amount of data, and the structure of the organization, it may not be possible to understand the entire scenario of the data assets. Quite naturally, data analytics becomes more difficult to implement under such a situation resulting in multiple combats between the managers and the IT departments who unnecessarily expect results without understanding the potential and the capability of big data.
● Paralyzed analysis
Data sampling is essentially important to reduce the time and cost involved in analyzing the data. For instance, in a small data set, sampling and the data governance methodologies is an easy task. However, the difficulty is likely to arise when you have huge amounts of data stored at your disposal as too many sampling techniques may interfere with each other. A lot of businesses find themselves in a fix while testing the usefulness of the techniques and guessing their decisions. The management teams lose the power of analyzing the data leading to an impediment in discovery and implementation of the valuable insights.
For hackers, the businesses are the most attractive target for data pilferage, exploitation, and identity theft. The big and the small enterprises are equal targets for hackers. While big companies make headlines with data loss, the smaller business enterprises face the hassles in the dark. Without a proper data strategy, businesses have more risk of losing data or even more than that. When the organization deals with private or sensitive information, the relationship or reputation falls in place.