Data is the new business currency and most of the leading global organizations continue to collect data and utilize it in the best possible manner. It is estimated that for a Fortune 1000 company, even an increase of just 10% in data accessibility can result in an increase of the net income by almost $65 million. As data accessibility is better now, it is easy to derive actionable insights from disparate sources and formats of data.
Managing massive amount of organizational data is difficult due to several influencing factors, including the choice of reporting tools, company's strategic plan, etc. So, it is important to clearly understand the concept of data management to avoid any misconceptions about it. In this article, we have listed some of the most common data management misconceptions.
Data management is very important for any company as it helps to obtain deep insights and take key business decisions based on these insights. However, there are numerous data management misconceptions, which have to be cleared immediately. Some of the most common misconceptions about data management that numerous data management companies have are listed here -
One of the most common data management misconceptions is that managing data is one of the easiest tasks a company can do. However, it's not! This is because, although everybody knows that it is beneficial, nobody wants to do it. So, the trick to get started with data management is to understand it better, involve the employees in it, and evaluate how it can be beneficial for the company.
There are many factors to be considered before implementing data management processes, as large-scale implementation might seem unattainable. Streamlined data management is definitely necessary for every company, but that doesn't mean you do it all at once. So the best way to overcome such data management misconceptions is to start slowly by using just one resource initially and then ramp up gradually.
Though data security and data quality are some of the most important aspects of data management, they are not the only aspects to be considered while implementing a data management strategy. If these aspects are the major concerns then it is important to work on it and not stop at it. Being more inclusive in the approach will make it easier to identify and address possible data management challenges.
Data management is a wider concept as compared to MDM. Data management is much broader and it deals with the institution's culture rather than its systems. Therefore, good data management ensures that the people understand data, rely on its accuracy, and leverage it for making decisions. Master data management, on the other hand, is just a part of data management and deals with a single source of organizational data.
One of the major data management misconceptions of numerous organizations is that data management is completely IT team's responsibility. Lack of trust and understanding on functional side can destroy the entire reporting project, even when the task is done perfectly by the IT team. Therefore, it is important that the functional team and the IT team effectively communicate right from the beginning. Ensuring this will help in building transparent data management processes across the organization.
This is one of the major data management misconceptions. Data stored on local devices are more vulnerable to physical disasters, virus attacks, and/or thefts. Whereas cloud data management encrypts the data, stores it behind sophisticated firewalls, maintains authentication gateways, and has various other security mechanisms which make it far more secure.
Such data management misconceptions were true a few years ago but it is not anymore. Today, cloud data management software has become much more affordable than the traditional data management tools. When you take into account various factors, such as the costs associated with the hardware, storage, licensing, IT management, backup solutions, energy, and security, traditional software will only add up to the operational costs. However, in case of cloud data management software, there will be an upfront cost of installation and cloud migration which is a small price to pay for a long-term benefit.
This is one of the most common data management misconceptions, which is technically correct. If MDM is not considered as a part of the business which provides returns, then it is all investment. The returns can be expected in the form of improved process efficiency which is achieved by tweaking the processes based on results from data analysis. Such processes ultimately help in reducing the overall expenses and boosting the sales at some level.
One of the prominent data management misconceptions is that the cloud data is difficult to access as people don't know what and where it is. The cloud represents the Internet where data is stored on servers. Due to lack of Internet access in the past, this misconception may have been true, but can be ruled out currently. Storing data in the cloud makes it much easier to access from any place and at any time.
With traditional data management software, businesses should limit themselves to the amount of storage space and hardware available, but with cloud data management software the storage is unlimited, which ultimately leads to greater efficiency. The cloud environment also allows businesses to work in a more organized and structured manner.
Outsource2india is one of the leading outsourcing companies based in India offering data management services to global clients for over 23 years. We have served clients across different industry sectors and can cater to any kind of client requests. At O2I, we understand the importance of effective data management and hence provide top-quality services within quick turnaround time at affordable rates. Our data management experts are highly skilled and experienced and we also have the bandwidth to handle even large volumes of data.
By outsourcing data management to us you can be assured of efficient data management services. Get in touch with us now.
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