Many businesses, including the more established ones, fail to understand the importance of data. They fail to realise that proper data management can be a highly effective strategy for them. Ensuring a proper process of collecting, storing, processing and analysing data can power growth and revenues.
In the past few years, organizations, which have taken to data management, have seen-
- An increase in sales, revenues and profit margins
- Lesser wastages and duplication of work
- Improved efficiency and turnaround times
- Streamlined operations
- Better employee output and productivity
If you are a business owner or a CEO who is looking to elevate his or her business to the next level, you need to pay attention to data. In this article, we are going to focus on the basics of data management. We will also see some important factors that you need to pay attention to when going for a data driven strategy.
What is Data Management: Meaning and Definition
Data Management is the process of making the right and accurate data readily available when required. In other words, data management is the sub-total of all processes, which include-
- Collecting and gathering data from different sources
- Storing data and ensuring data privacy
- Analysing and processing data
- Disseminating the data across the requisite verticals
- Executing businesses processes and strategies based on the data
Data Management also includes maintaining a high quality and standard of data. One important thing to remember is that you need the data to fulfil a particular KPI. This is why the focus of data management is to make relevant and high quality data available when needed.
According to gartner mdm, data management and the processes surrounding it can be highly beneficial for any organization. Businesses can work with either third party credible data management vendors, or set up their data teams.
5 Things to note when going for a Data Management driven strategy: The List
- List your Business Objectives first-
Many businesses make the mistake of not listing what they intend the data to achieve in the first place. The first thing, which you need to do is to list out the objectives, you want the data to fulfil. This can be anything from- accelerating the turnaround times, improving sales, getting more customers in your relationship database and so on.
- Think about the Investments and Resources required-
If you are going in for a data driven strategy, you need to ensure that you are seeing it through. This means that a data management process needs to be completed. This requires businesses to plan their investments and resources accordingly. If you have set a one-year period for the entire process, you cannot abandon the same within six months for lack of resources.
- Working with an external vendor or setting up your own team-
As a business, you have the option of either investing in your own data teams or working with an external specialist vendor. If you are an organization who is going in for data management for the first time, it is best to work with a credible and reputed data management agency. Once you have the experience, you can always set up your own team.
- Pay attention to Data Privacy and Security-
As a business if you are collecting, storing and analysing consumer data, you need to be careful about security and privacy. This can also be a major USP for your brand if you play the right cards. The aim is to use the data to make the consumer experience better, build relationships and improve sales and revenue figures.
- Following through on the Data Management processes and execution-
What your different business departments do with the data after receiving them is important. This is why it is important to create a data centric and aligned organization. Businesses need to train their employees and other stakeholders as to how the data should be read and the objectives it needs to fulfil.
Conclusion
Businesses, which are not considering working with data, stand to lose on a lot. You can be rest assured that your competitor is using data management to gain an advantage over you. It is high time; businesses adapt and reinvent themselves according to the current digital trends. Data Management is one of the best ways of doing the same.
