Data management is important because the data your organization create is a very valuable resource. The last thing you want to do is spend time and resources collecting data and business intelligence, only to lose or misplace that information.

In that case, you would then have to spend time and resources again to get that same business intelligence you already had.

Below are a few other benefits of a strong data management plan.

Productivity

Good data management will make your organization more productive. On the flip side, poor data management will lead to your organization being very inefficient. Good data management makes it easier for employees to find and understand information that they need to do their job. In addition, it allows them to easily validate results or conclusions they may have. It also provides the structure for information to be easily shared with others and to be stored for future reference and easy retrieval.

Cost Efficiency

Another benefit of proper data management can be that it should allow your organization to avoid unnecessary duplication. Be storing and making all data easily referable it ensures you never have employees conducting the same research, analysis or work that has already been completed by another employee.

Operational Nimbleness

In business the speed at which a company can make decisions and change direction is a key factor to determining how successful a company can be. If a company takes too long to react to the market or its competitors it can spell disaster for the company. With a good data management system it can allow employees to access information and be notified of market or competitor changes faster.

Security Risks

In addition there are multiple risks if your data is not managed properly and your information falls into the hands of the wrong people. For example electronics giant Sony was prey to computer attacks which led to the theft of over 77 million PlayStation users’ bank details. A strong data management system will greatly reduce the risk of this ever happening to your organization.

Reduced Instances Of Data Loss

With a data management system and plan in place that all your employees know and following it can greatly reduce the risk of losing vital information. With a data management plan things will be put in place to ensure that important information is backed up and retrievable from a secondary source if the primary source ever becomes non accessible.

More Accurate Decisions

Many organizations use different sources of information for planning, trends analysis, and managing performance. Within an organization different employees may even use different sources of information to perform the same task if there is no data management process and they are unaware of the correct information source to use.

The value of the information is only as good as the information source. The old idea of garbage in garbage out. Using wrong information results in bad decisions and inaccurate conclusions. Data entry errors, conclusion errors and processing inefficiencies are all risks for companies that don’t have a strong data management plan and system.

When Is The Right Time To Review Your Data Management?

There is no right time other than right away. You do not want to have an information leak ever with your business. Data management is an issue you do not want to put on the back burner as it could result in costly consequences. The right time to review and implement a data management system if you have not already done so is right away. If you already have a system in place then reviewing once a year annually is what we would recommend.

Should You Get Outside Assistance With Data Management?

There are many benefits to getting outside assistance with your data management. For one, an outside firm that specializes in data management will be more of an expert that your internal resources. This can bring added safety to your organization. In addition it is usually less costly as an outside firm that specializes in data management can obtain economies of scale.

Don’t let your organization fall into this trap. Make a commitment today to put a strong data management plan and system in place. If you would like assistance in this matter contact one of our experts and they will put you in contact with the right resources to get a strong data management plan and process in place.