Data management for many initially sounds like a lot of effort. However, this does not necessarily have to be the case. There are methods such as data warehouse automation, which can simplify the process greatly. Why do companies actually need central data management? What advantages does it offer for companies?
In the following, I’ll go over reasons why proper and centralized data management is indispensable for companies that want to make data-driven decisions.
1) Make Important Decisions Based on Data
Data management is necessary to provide the right data in the right place at the right time in the company. Data is known to grow disproportionately in companies, which does not simplify its organization. The information that companies can generate from it is also growing at an increasing rate.
Data management offers the possibility of providing a holistic, comprehensive, and complete view of a company’s business-relevant data across departments. This is the only way to ensure that company-wide decision-making processes are based on identical and up-to-date data.
2) Single Source of Truth
Without a clear, centralized data management system, each department is usually responsible for collecting and maintaining its own data. As a result, the same data is often entered twice. In the worst case, identical data is managed by several departments. This is because a large part of the data in companies is not department-specific but is required throughout the company.
In addition, a lack of central data management leads to poor data quality. Department-specific maintenance inevitably results in different “truths” about which data is the right one. This in turn can lead to problems in reporting or cross-functional processes. To establish a “Single Source of Truth” in the company, you therefore need end-to-end data management.
3) Compliance & Governance Processes
Having all data collected centrally enables companies to establish dedicated data compliance and governance processes. Modern data management systems offer the possibility to define clearly structured data responsibilities.
This means that it is clearly recorded and documented who is allowed to change and edit which data in certain places, to ensure that only the responsible department or person manages the data. This in turn leads directly to improved data quality.
4) Less Manual Effort and More Efficient Business Processes
The previous two reasons mean that with centralized data management, employees across the enterprise can always access up-to-date, high-quality master data to support their processes. Consequently, employees quickly access a comprehensive knowledge base and relevant information directly. This ultimately helps to increase process efficiency.
Time-consuming manual maintenance of data becomes unnecessary, and employees gain time for more important tasks. Another advantage: manual processes, which are always a source of errors and a driver of inefficiency, are eliminated.
5) Basis for Data Solutions
In addition, correct data management forms the basis for further data solutions such as data analytics or data science applications. Often, this foundation is not yet stable in companies and data cannot be retrieved correctly for analytics and further applications.
Other benefits of targeted data management include:
- increased availability of data
- democratization of data
- a central analytics platform
- quicker decision making in the company
- fewer wrong decisions due to improved data quality
- minimal time-to-value for all data-driven challenges
- cost savings and optimized productivity
- expansion of advantages over the competition
- rapid identification of market and competitive dynamics.
Closing Thoughts
The transformation to a data-driven company often starts with enterprise data management. After all, this first step is often the biggest challenge. As a basis for a smooth start and also as a foundation for the entire life cycle of all data projects, a long-term and future-proof data management strategy helps to avoid mistakes and unnecessary costs.
Do you want to learn more about central data management in your company? Contact me!
