Life Hack

THE IMPORTANCE OF DATA MANAGEMENT

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Data management is the development and execution of processes, architectures, policies, practices and  procedures in order to manage the information generated by an organization. Data management includes data security, data sharing, document and record storage, data governance and data quality management.

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1.    Productivity

Good data management will make your organization more productive. On the flip side, poor data management will lead to your organization being very inefficient. Good data management makes it easier for employees to find and understand information that they need to do their job. In addition, it allows them to easily validate results or conclusions they may have. It also provides the structure for information to be easily shared with others and to be stored for future reference and easy retrieval.

 

2.    Cost Efficiency

Another benefit of proper data management can be that it should allow your organization to avoid unnecessary duplication. Be storing and making all data easily referable it ensures you never have employees conducting the same research, analysis or work that has already been completed by another employee.

 

3.    Operational Nimbleness

In business the speed at which a company can make decisions and change direction is a key factor to determining how successful a company can be. If a company takes too long to react to the market or its competitors it can spell disaster for the company. With a good data management system it can allow employees to access information and be notified of market or competitor changes faster. As a result, it allows a company to make decisions and take action significantly faster than companies who have poor data management and data sharing systems.

 

4.    Security Risks

In addition there are multiple risks if your data is not managed properly and your information falls into the hands of the wrong people. A strong data management system will greatly reduce the risk of this ever happening to your organization.

 

5.    More Accurate Decisions

Many organizations use different sources of information for planning, trends analysis, and managing performance. Within an organization different employees may even use different sources of information to perform the same task if there is no data management process and they are unaware of the correct information source to use.

The value of the information is only as good as the information source. The old idea of garbage in garbage out. This means that decision makers across the organization are often analyzing different numbers in order to make decisions that will affect the company, and result in poor or inaccurate conclusions without a data management system in place.  Data entry errors, conclusion errors and processing inefficiencies are all risks for companies that don’t have a strong data management plan and system.

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