December 18, 2020 Last updated December 18th, 2020 342 Reads share

What Is Data Management and Why It Is Important?

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Data management is the process by which a business gathers data, stores and accesses it, and makes it secure. This data is collected from different business software solutions. Data management unifies all this data in a centralized spot. It is important because it helps you to easily access data analytics that can be used to utilize new opportunities and expand your business.

Why Is Data Management So Necessary?

It is necessary because it helps the management to make informed decisions. Using data management, they get insights into business operations and will be able to identify areas that need improvement. Every business organization generates huge quantities of data, which must be stored systematically for it to be accessible. Data analytics must be available for companies to improve their products and services and offer better amenities to their customers. Some of the different types of data collected are from accounting software, point of sale software, CRM or customer relationship management, and credit card processing software amongst others. These are then classified under headings such as financial data, customer data, and so on.

Types of Data Management Services

Data management services include data governance wherein they design governance strategies and policies regarding user roles, standards, and metrics related to data as well as rights and responsibilities. Data has to be accurate for it to be useful to the company. Data quality management does data cleaning activities to ensure only genuine and dependable data has been stored. There are tools such as Informatica and Talend that help a business to track data and associate it with metadata or for later retrieval. This improves data structure as data is organized in a way that makes it more accessible. Master and metadata management assess all sources of internal and external data and technologies to monitor the quality of master and metadata. Data tracking helps the company keep track of every data asset that is at their disposal so that it can be retrieved easily when needed.

Efficient Management of Databases

Data management services also include business intelligence using tools such as Tableau, Snowflake, and Microsoft Power BI. This ensures that all data is stored securely and available to decision-makers in a structured way so that they can draw meaningful insights from it. BI tools are essential because databases are huge and impossible to manage manually. Data integration is another aspect of data management services wherein tools like Logic Apps and Functions enable user-friendly interfaces to centralize different sources of data such as from accounting and CRM.  The decision-makers are able to utilize the combined data from such disparate sources to make managerial decisions.

Importance of Data Management Plans

Data management plans are important as it helps to increase the visibility and impact of the data available. You can preserve it securely for long term use and you can share it with others if needed. The data from your organization is valuable and it is important that it is available for your company to be more productive and organized. Employees are able to easily access the information they require without wasting precious time and use this information to better their understanding. There is no need to waste money and time on duplication when the data is securely stored and accessible. Companies are able to respond better to market changes and competition when they have accurate data to back their decisions.

How Data Management Professionals Can Help

It is prudent to hire data management professionals who excel in their work.  Ideally, they must be experienced in different domains such as hospitals, digital marketing, or education. They should be familiar with the entry and collection of data from different business fields. The accuracy of the final data that is stored depends on the skill of the data management professionals. The raw data has to be analyzed, refined, and then stored as per the inputs of the client. These professional teams should also be familiar with the latest technological innovations in data management.

Developing A Data Management Strategy

The first step to data management strategy is understanding the key business objectives. These objectives will help determine the collection and organization of data. This will also help decide who can access the sensitive data, when, and for what reasons. The classified data is then given a place and a task regarding its storage, security, and usage. Data management strategy must include different goals such as the power to audit business operations and determine its progress toward the organizational goals.

Data management is a hugely complex area that must be managed by a team dedicated to it.  Small and medium businesses may not always find it feasible to have an in-house data management team. They can instead hire data management professionals and equip them with the tools required to organize their databases and develop a global slant to data management.  Data management plans should also be auditable to prove their compliance with business partners and regulators.

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Waseem Ahmad

Waseem Ahmad

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