Why is Data Management Important for Businesses?
Businesses generate a phenomenal amount of data these days. Everything from customer sales metrics to website visitors creates reams of data. This data is incredibly useful, but it must be carefully managed. For this reason, data management cannot be ignored.
Data management encompasses several processes. These include cleaning and transforming raw data into the right format, transferring data from one system to another, cataloguing it, managing it, and keeping it secure.
Boost Productivity
Establishing more efficient data management processes has a lot of benefits. Firstly, it can eliminate the problem of data redundancy. This happens when there are multiple files created with the same data, such as more than one record for the same customer within a CRM. Not only is this inefficient, but it can lead to incorrect information being used, and mistakes made.
A data management system (DMS) will automatically remove duplicate records and values, which eliminates the need for manual checks and boosts productivity at the same time. For this reason, businesses must prioritise data management before implementing a CRM system. Properly managed customer data can be accessed and analysed more easily, plus it is always up to date, which is crucial in a customer-focussed business. In addition, information in the database is updated immediately when a DMS is used.
Improve Operational Efficiency
Data can boost productivity by helping employees and management make better decisions. If up-to-date data is used when decisions are made, companies are better placed to adapt more swiftly to market changes. In a fast-paced market, any delay when making decisions can be disastrous.
Better Security
Data security is a hot-button topic. The UK General Data Protection Act (UK GDPR) covers most UK businesses. Fines for data breaches can be as high as £17.5 million or 4% of turnover. Data breaches are catastrophic for organisations; as well as leading to financial penalties, a significant data breach can potentially impact a business’s brand.
Appropriate measures must be put in place, so data is kept secure at all times. Problems can arise when multiple users have access to databases containing confidential and sensitive data. Using a DMS with user permissions in place ensures only privileged users can access the database and user identities are always verified. In addition, only verified users with the right access permissions can modify data files.
Data backups are important, but doing so can eat up a lot of resources, especially when there are very large databases. As well as keeping critical data secure at all times, a DMS will automatically back up data at regular intervals. Even if there is a system failure, the DMS can restore the latest backup, so data loss is minimised.
Improve Customer Satisfaction
Implementing an efficient data management system will improve customer satisfaction. For example, if a customer service representative can access up-to-date information in the CRM, they’ll be able to resolve the customer’s issue with minimal delays. This is likely to lead to a better outcome.
Do not underestimate the importance of effective data management. If you don’t already have a data management system in place, you can’t afford to waste any more time.