The current era of technology we are in has a new demand - data management, and effective data management has already become one of the key areas that organizations need to focus on to stay competitive and efficient." While managing an organization’s data well might unlock a lot of value in business, let us also look at some of the challenges that businesses can face because of poor data management and its corresponding impact.
Poor data quality = unhappy customers!
A recent Gartner research has found that organizations believe poor data quality to be responsible for an average of $15 million per year in losses*. According to a renowned Gartner analyst, “As organizations accelerate their digital business efforts, poor data quality is a major contributor to a crisis in information trust and business value, negatively impacting financial performance.”
Accurate and complete customer data on buying patterns, tastes, and preferences, can enable businesses to tailor and customize experiences. This would, in turn, means improved customer satisfaction. Satisfied customers will translate into loyal customers!
Increased data volumes make it difficult and time-consuming to search for information
Increased data volumes with no proper way to structure and manage it might mean reduced efficiency, as access to trustworthy and clear information can become an obstacle. If these high volumes of unstructured data and their sources were managed effectively, it would mean the usage of this structured data for various needs becomes much easier. While solving the problem of unstructured data, it also becomes important to ensure that there is a single, standardized and accurate source of data available for use between applications and companies, i.e. a single master data set made available for all.
Huge risk of non-compliance
With the growing number of regulations and compliance policies around appropriate management and storage of data, it is critical for businesses to have a comprehensive data management practice in place. This includes data integration, data quality, master data management, data governance, and analytics. Effective data management reduces the risks and costs that arise due to regulatory non-compliance and security breaches. Increasingly, organizations are seen to be adopting a data management policy to ensure compliance.
Effectively managing data is a very important capability that businesses should consider investing in. Accurate data can provide great insight into business operations and improves decision making adding a lot of value to the business. Know more on effective data management and how To-Increase’s data management solutions can give you a good start in delivering quality data, ensure accuracy, transparency, and easy integration across applications and companies. Know more – To-Increase Master Data Management (MDM) Studio.