Data has become the driving force in the decision-making process. Irrespective of the business size, companies are heavily relying on data insights to formulate decisions that can help in improving productivity and enable better strategy formation. However, one of the key concerns of the organization drops in when they have to manage a large volume of data. Knowing the right ways of Data Management is paramount. In this blog, we have covered Data Management and its examples along with its benefits.
What is Data Management?
Before delving deeper into the process of Data Management and its significance, let’s scratch the surface of the Data Management definition. In simple words, Data Management involves the collection, storage, and processing of data. A company has to deal with large volumes of data; this can be customer feedback, preferences, employee details, financial data and others. Hence every company needs to adopt the best Data Management techniques and strategies that can help them derive better and more useful insights that eventually help the company grow.
The Data Management approach may vary from one organization to another based on the volume of data and the size of the company. For example, data cleansing can be a small step for a startup since they will be dealing with a limited volume of data, but in the case of a big enterprise, this volume of data would be large, and hence they need to prioritize cleansing of data.
Data Management Process
Types of Data Management
Data Management is an intricate process that requires precision. There are different types of Data Management which a company needs to adapt to suffice their requirements. Here are a few of them:
It highlights how the company gets its data and takes into account different aspects like data storage, usage, and security. It helps in better comprehension of data.
As much as it is significant to have a stronger Data Management Framework, the implementation of policies and rule enforcement is important. The Data Steward is responsible for the same. Their prime focus is to keep a tab on data collection and ensure that the exchange and movement of data are as per the policies.
These are simple diagrams of the system and the data stored in it. It helps you to view how the data flows through the system. It includes customer data, partner information and others.
Data Quality Management
The quality of data plays a significant role in defining the effectiveness of data insights. This part of Data Management focuses on filtering the data and starting the best quality for processing.
Security is the most important aspect of all kinds of work. This holds true in Data Management too. Data Security is important at every step of Data Management. It ensures breaching attempts, involves encryption management, and ensures that confidential data remains in a safe and breach-free ecosystem.
Data integration involves combining, transforming, and provisioning data as and when required. It can take place at the enterprise level or beyond. Some of the techniques for data integration include data replication, streaming data integration, extract, transformation and load, bulk movement of data or batch-wise movement of data.
Big Data Management
It involves the management of a large volume of data to improve the operation. It collects raw data and analyses the data such that it can be used to improve the functioning of the business.
To store a large volume of data, every company needs to switch to Data Warehouse. It can be cloud-based or deploy a physical infrastructure catering to data warehousing. The latter is, however, costly, but cloud-based data storage is cheaper, more effective and more efficient.
Examples of Data Management
Initially, a company named Chameleon relied on Google Sheets to manage the events. However, this was prone to flaws and errors. Later Chameleon switched to Iteratively, a Data Management tool. It helped in the verification of data. This tool is easily integrated with their existing stack, thus helping them in building schemas to confirm and validate the events within their products.
It is a grocery delivery service that was facing issues with data efficiency. Moreover, large volumes of data present with Instacart had grown beyond its capacity to manage it. Later, they adopted Amplitude, which helped in uniting the data from different tools into a single solution. Moreover, Amplitude also made it easy to manage bulk data easily.
Benefits of Data Management
Data Management is integral for every business; here are some of the key benefits it renders:
Improves decision making
Right decision-making plays an important role in formulating strategies that can ensure productivity and profit. With Data Management tools and techniques, the company can get accurate and up-to-date information about the current state of the system. Moreover, data processing and cleansing is one of the integral steps of Data Management, which ensures that the company is working only on quality data. Hence it gives accurate and precise insights.
These Data Management tools also help in creating a historical record of decisions that can be accessed as required. All this eventually helps in better decision-making.
Get Rid of Redundancy
An organization can easily get over data redundancy by implementing a data governance framework. It ensures that only one version exists in the system that sets up the process for the processing of data and movement of data.
Data cleansing is yet another aspect that includes removing duplicate data and faulty information and classifying the master data such that only one version of the records exist
Ensuring the automation of the tasks also reduces redundancy. Automating the data cleansing, processing and transformation of data saves time.
Reduces Data loss
One of the significant benefits of Data Management techniques is that it helps in reducing the loss of data. It is in walls that all the data resources are available when required and can be restored in case of emergency. It helps in reducing the loss of information.
Ensure Data Security
Another significant benefit that Data Management can provide is ensuring data security. As the world is slowly drifting towards digitization, data security has become a prime concern. By adopting the best practices of Data Management, a company can ensure a safe ecosystem where all confidential information remains safe. Some of the ways to ensure this includes data backup and recovery and data encryption.
Under the Data Management process, one of the key aspects that a company needs to factor in is the protection of data. Since these pieces of information are quintessential and confidential for organizations, companies cannot compromise on the security aspect of the data. And so, they need to install safety features like ransomware to combat the attacks that become rampant.
Wrapping it up !!!
This is a brief discussion on Data Management and its significance. Today, every organization needs to harp upon the latest tools and techniques for managing the data. Since a large volume of data is being created every day, it becomes important for an organization to adopt the right measure that can manage this data and also keeps it safe. The Data Management best practices, Data Management tools, or pivotal in ensuring the complete safety and security of data.