Data analysis has been increasingly important to success, whether you are a small business owner or a large enterprise. For your business to stand out and leave the competition behind, you need to gather and analyze customer information and the market as a whole. So in many ways, smart data management is absolutely essential to business success and to achieving a sustainable level of growth.
With this in mind, throughout this post, we will address the importance of properly managing data to facilitate access and ensure the security of company information. In addition, we will address cloud data and the consequences of poorly managing data in either a small business or large enterprise.
What Is Data Management and How Important Is It
If we can summarize in one word what data management is, we can define it as Organization. This process is based on collecting, validating, storing and ensuring data security so that it can actually be transformed into useful information. Important decisions based on raw data can be very dangerous, so you have to go further and analyze every detail of the database to qualify the decision-making process, which should not be rushed.
When all the information you need is well organized and properly stored in an integrated and orderly manner, files such as projects, financial statements, sales prospects and other important documents are more easily found in the system whenever you need to analyze them.
Consequences of Poorly Managed Data
The consequences of poorly managed data can be significant. Consider the following examples:
- Financial Losses: Your organization’s headquarters is flooded unexpectedly. Your backup system is out of date and as a result, you lose months of data, worth millions of dollars for your organization.
- Litigation risk: Hackers access your customer database, which includes addresses and credit card numbers. These customers are now at risk of identity theft, and they decide to prosecute you for violation of their privacy.
- Excess data storage costs: Your organization has no process for data cleansing – replacing or deleting inaccurate, incomplete, or outdated information. As a result, your data storage costs and IT resources need to be doubled each year.
- Inefficient workflow processes: Your team members cannot find the information they need to do their work because each department has its own database and none of these systems communicates with each other.
- Missed Opportunities: Your sales reps struggle to access the inventory database, which informs them of product availability and delivery dates. Competitors gain sales from you because they have immediate access to this information.
- Negative pressure/publicity: One of your team members loses their laptop, which contains information about a well-known customer. As a result, your organization receives negative media coverage and you lose a number of customers.