Why is Data Management Important for Your Business?
Everyone knows the importance of data for business success. However, it's one thing to understand how valuable data is; realizing the impact of data loss, corruption, and breach is another.
This is where data management plays a crucial role. Your business needs to manage its data well to avoid costly mistakes. An effective data management system also ensures the seamless operations of every aspect of your business, such as marketing, sales, accounting, logistics, and customer service.
What does a good data management system really entail and why should you invest in it for your business? Keep reading to find out.
What is Data Management?
Data management involves gathering, storing, organizing, updating, protecting, maintaining, verifying, and processing business data to ensure its accessibility, completeness, accuracy, security, and cost-effectiveness.
Critical to the success of any business, this process enables people at any level in the corporate ladder to perform their jobs, make decisions, and take actions so that they collectively meet their organizational goals.
6 Reasons Your Business Needs Proper Data Management
1. Quicker Access to Information
If all your business data is streamlined and centralized, meaning it's housed in a neat and organized place such as a server, your employees can easily find the information they need to complete their tasks and share data with other teams.
With an organized system of managing data, the sales team can quickly access data about a particular customer or lead. The marketing team can better formulate strategies to promote your business. The product development team can do background research needed to come up with a new product or service.
A good data management system leads to increased operational efficiency and productivity, and ultimately, higher revenue. No time is wasted looking for information because it's available to your people when they need it.
2. Prompt and Sound Decision-Making
Quick access to data enables CEOs and business executives to analyze it without delay, so they can make decisions based on that analysis, and their people can take action immediately.
Especially if you're in a fast-paced industry where competition is cut-throat, proper data management gives your business a competitive advantage.
The market evolves fast, and your company has to keep up. With a poor data management system, your business won't be able to determine and analyze changing market trends, and change direction or strategies to respond to those changes.
3. Reduced Data Security Risk
A data breach has serious financial consequences. In the United States, for instance, the average cost for every data breach in 2019 reaches $8.19 million, based on research by the Ponemon Institute. The same study also found that on average, lost business due to data breach had cost U.S. companies $1.42 million.
Sony knew this too well. In 2011, the electronics giant suffered a massive data breach when over 77 million PlayStation users' information—including names, addresses, and credit card details—were stolen.
If data breaches can happen to large companies, small businesses are just as at risk. Your business needs a solid data management system to protect sensitive information and maintain your customers' trust.
4. Preventing Data Loss
Your business can't afford to lose important information, whether temporarily or permanently, about your company and customers. The effects could be costly. For example, if you lose data about your leads, you also lose the opportunity to gain new customers. If you lose customer information, your customer service team will take long to respond to customer inquiries.
This is why your business needs a reliable data backup system. During system failure or any glitch, having your data backed up allows you to retrieve lost data easily. You don't have to spend time and money collecting information all over again.
5. Improved Data Quality
Errors are inevitable in any business operation that continuously transfers data to different files or systems. The only way to prevent inaccurate, outdated, or duplicate data is to have an effective data management strategy in place. This enables your organization to have better control over data quality and minimize the adverse impact of bad data.
6. Saving Time and Money
With poor data management, you're bound to lose precious time and money. It results in productivity loss because time is wasted looking for lost data. More so if there's work duplication, i.e., employees performing data gathering and analysis that has already been done by another team. It's costly also because your IT team has to spend time fixing data errors that could have been avoided from the get-go.
On the other hand, a strong data management system is cost-efficient for your company. You get to save time and money that you can allocate for other aspects of running your business.
Data is the lifeblood of any business. No matter how much data you gather, it won't be of any use if it's lost, incomplete, inaccurate, outdated, or stolen. So invest your resources in making sure that your data management system is top-notch and well-maintained.
We can help you with your hardware needs for your data management system. Tools such as servers, hubs, switches, and panels for businesses are available right here at PoundIT Business. Contact us today to get a quote instantly!