The Importance of Data Management
Data management is the process of establishing and enforcing policies, processes and procedures to manage data throughout its lifecycle. It ensures that data is reliable and accessible, which facilitates compliance with regulations, and facilitates informed decision-making.
The importance of effective data management has grown significantly as organizations automate their business processes, leverage https://taeglichedata.de/how-to-set-up-a-relevant-and-useful-deal-room software-as-a-service (SaaS) applications and deploy data warehouses, among other initiatives. This creates a flood of data that needs to be consolidated, and then sent to business analytics (BI) systems, enterprise resource management (ERP) platforms, Internet of Things (IoT), sensors, and machine learning and generative artificial intelligence (AI) tools, to provide advanced insights.
Without a clearly defined data management strategy, businesses can end up with silos that are incompatible and inconsistent data sets, which hinder the ability to operate business intelligence and analytics applications. A poor data management strategy can cause distrust between customers and employees.
To meet these challenges businesses must devise a data-management strategy (DMP) that includes the people and processes required to handle all kinds of data. For example, a DMP will help researchers determine the naming conventions that they should follow to organize data sets to ensure long-term storage and for easy access. It could also include a data workflow that defines the steps involved in cleansing, validating and integrating raw and refined data sets to ensure they are suitable for analysis.
A DMP can be used by companies that collect customer data to ensure compliance with privacy laws on a global and state level, such as the General Data Protection Regulation of the European Union or California’s Consumer Privacy Act. It can also aid in the development of policies and procedures to address security threats to data and audits.