Data management is essentially the process of ensuring that all the information generated by a business is effectively used. Data is one of the most valuable assets that most organisations have today – data driven insights can change the way operations function, drive up productivity and open the door to better, longer lasting customer relationships. For any business serious about growth, data management has to be at the heart of strategy.
The basics of data management
As data volume has grown, so have the standards and compliance requirements surrounding it, and this has increased the complexity of data management for any business. However, there are a few key processes that define what is necessary for any organisation looking to make data management a priority, including:
Chain of custody
For example the security in place to protect data in the possession of your business, as well as the steps taken to ensure destruction.
Transparency on data governance and data sharing are both crucial for ensuring compliance with the rules and regulations that govern how data should be handled.
Effective data management will generate actionable insights that can be used by any business to do more – in data management terms this means effective storage, organised warehousing, business intelligence management, quality vetting and database management.
Why data management is important
Mitigating security risks
The potential damage to reputation as a result of a security breach involving data is substantial. Since the GDPR came into force last year, businesses that don’t have sound data management practices in place can also potentially face fines and legal action.
Streamlining costs and processes
Data has a key role to play in helping to make operations more efficient, reducing costs and avoiding duplication of effort.
Protecting against data loss
Today, data is an enormously valuable commodity for business and failing to protect it is not an option for any organisation that is looking to make the most of the assets it has. Part of data management is ensuring that key information is backed up and will be accessible, even in a disaster scenario.
Supporting business evolution
Well managed data provides any business with the opportunity to stay on top of growth and development, identify and plan for risks and take advantage of opportunities, as and when they arise, so as to remain competitive.
A more productive organisation
Well managed data makes it easier for employees to do their jobs, reduces time wastage and helps to create solutions for increasing productivity.
When data is effectively managed this reduces the potential for mistakes or miscommunication as everyone is viewing the same data, the right version or the most up to date record. Data is transparent and supports better and more accurate decision making and planning.
There are many tools that can help to enable better data management which, in turn, drives productivity, efficiency and competitiveness. Buying into better data management is essential for any organisation truly looking to grow.
Get in touch with CFM Systems to find out more about our financial management solutions.