The Importance of Effective Data Management

March 2016

The Importance of Effective Data Management

The concept of data management is actually older than computers and our current concept of data. Originally, data management referred to the process by which a researcher organized and managed the information they found when studying a topic. In the business world today, data management generally refers to managing the flow of digital data collection from customers.

While the methods are different and modern data collection works with much larger data sets, the concept is still the same. Whether you’re writing a research paper or attempting to create a completely personalized shopping experience for your customers, you’re going to collect as much data on the subject as possible. Then you’re going to use your data management systems to glean the most useful information from that data, and finally you’ll analyze that information to write your research paper or make the perfect recommendation for an add-on item before your customer checks out.

Digging Through Mountains of Data

First of all, effective data management is important because you simply cannot manually dig through all of the data that’s available today. Even if you’re only collecting data on one small market segment, you’ll be quickly inundated if you don’t have the means to manage it.

Of course, when we’re talking about data that you collect from your customers, we’re talking about a much smaller slice of the big data pie, but we’re still talking about a lot of data. Without the analytics tools to break it up into readable, usable information, it won’t matter how much data you collect from your customers. However, with a solid data management system in place, you’ll be able to look at more than just raw data. You’ll be able to see past and present trends, predict future sales numbers, and tweak your marketing strategy to reflect your customers’ behavior.

Avoid Data Loss and Theft

In addition to helping you sort through mountains of raw data without losing your mind, effective data management greatly reduces the likelihood of data loss or theft. Basically, if your data isn’t well organized and managed, then you open yourself up to data losses through human error, and you open yourself up to malicious attacks, as well. The more chaotic your digital environment, the easier it is for a hacker to penetrate your system and gain access to sensitive information.

Good data management includes procedures for data backups, security testing and updates, as well as data recovery in the case of an outage or other catastrophe. The rising number of incidences we’ve seen in the last years, months, and weeks of data breaches show us just how important proper data management and data security protocols are. Without these measures, you could be leaving your business open to disaster, whether through an error on the part of one of your employees or through an attack by hackers to breach your system and gain access to your customers’ sensitive information. Implement a good data management strategy, and you’ll be ahead of the game.


Sources:

https://powermore.dell.com/technology/the-importance-of-data-management-in-organizations/

https://www.libraries.psu.edu/psul/pubcur/what_is_dm.html

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