The Importance of Data Management

If analytics is a product that is constructed from the data of a company then data management would be the factory, material, and supply chain which go into making it. It’s an essential component of any company that is data-driven since without it, the most advanced analytics will fail. Data management encompasses everything from making sure that structured data is properly classified to ensuring a single source of truth and ensuring the quality of data.

A poor data management strategy can be catastrophic when it comes down to the most important asset of a business data. It’s estimated that bad data costs the US economy $3.1 trillion each year in lost productivity and an increase in the cost of maintenance and oversight.

For instance, if the sales department uses information gathered from customers in order to create targeted marketing campaigns, it’s important that the information is correct and complete. If, for instance the customer’s contact number or address isn’t present from your database, it could result in incorrect deliveries or unhappy customers. Incomplete data can also cause inefficient operations as well as poor-guided strategies, which could result in waste of time and resources.

All departments that collect or utilize data must be https://boardshould.com/navigating-the-complexity-of-business-processes-the-role-of-virtual-data-rooms-in-data-management in line with a solid strategy for managing data. It’s also important to establish strong governance programs that prioritize data quality and make sure that everyone is aware of the policies and standards to follow. It’s a good idea to be aware that new technologies are being developed to assist businesses in managing their data environments more effectively. Data fabric, for example, aims to reduce redundant data by automating the integration process and making data reusable.