In today’s digital climate, businesses generate around 2,000,000,000,000,000,000 bytes of data a day according to IT Chronicles. With this large amount of data, companies must figure out reliable methods to effectively process and analyze data to gain valuable insight into their customers’ behavior. Finding diverse ways to implement data organization and data management is becoming more and more of a necessity in this information age.
You might wonder if data management or data organization is better for your company, and which one should be your priority. Both serve as key strategies that help business leaders make important business decisions, monitor shifting marketplace trends, and stay focused on their goals. Either way, we’ll be exploring the differences between data organization and data management below so you can make more informed decisions when it comes to utilizing these data-driven solutions.
What is Data Organization?
Data organization also commonly referred to as data governance is the practice of classifying and categorizing raw data to make it more useful and understandable. Organization structures, policies, and processes must be in place in order for data organization to be successful. For companies looking to become more efficient, resourceful, more scalable, data organization is a necessary investment. Being able to easily sort through information can lead to increased security, minimal data loss, and help companies consistently meet regulations and compliance requirements.
Data organization provides a number of benefits such as improved efficiency, better management skills, and making it easier for companies to track progress. Companies become more efficient which allows for more time and resources to be allocated to other areas. Well-organized data sets give business leaders the opportunity to make intelligent decisions considering strategy and staying aligned with the business’ goals. Tracking progress helps companies stay on top of their resources, creates transparency, and gives team members a chance to be on the same page processing information.
Data organization is considered by many to be an off-shoot of data management and a preliminary step in data management. Before data management can even begin, the data must be organized, metrics analyzed, and data policies and procedures must be established. Data organization answers a lot of key questions such as who owns the data, which data sources are approved for use, who has access to the data, what security measures are in place, and is the data staying up to date with regulations.
What is Data Management?
Data management is the practice of collecting, sharing, organizing, analyzing, ingesting, and storing data within an organization. This allows businesses to improve business practices, maintain high-quality data, and make better-informed business decisions. Data management is more logistical than data governance yet enacts a lot of the policies and procedures established by the practice. Data management essentially carries out these policies and brings them to fruition.
Data management is highly beneficial for any business that wishes to thrive in the global marketplace. According to a Forester report, a 10% increase in data visibility could result in $65 of additional income. Efficient data management helps companies increase productivity because the data will be easy to share and become more accessible to the employees who need it most. Businesses can shift with market changes and react to customer needs swiftly.
Collecting data efficiently can be a challenging feat, especially with the sheer amount of data that needs to be analyzed. Companies usually come up with a number of data management solutions such as data management plans, data software, and digital tools to accomplish their goals. The first step usually involves creating a data architecture which is a blueprint for databases and applications to carry out the following steps. Data preparation, data pipelines, data warehouses, and data security are all different facets of data management.
Data is becoming one of the most valuable assets a business could possibly explore and analyze. Having a data management plan in place, helps companies stay more organized, run more efficiently, save money, and make important decisions based off accurate data. Data organization is a key component of data management that keeps records and information classified and categorized in an optimal fashion. Data management is the implementation of the policies and practices outlined by the process of data organization.
Data organization and data management are different practices on paper, but are sister processes that when used together can help a business grow, succeed, and flourish. According to Mckinsey, data-driven companies are 23 times more likely to acquire customers. With this in mind, organizations should invest in these practices to increase customer engagement which will lead to larger profits. They ultimately fulfill the same goals and empower businesses with deep insights that are easy to interpret and utilize for future decisions. Implementing a solid plan that incorporates both of these strategies is ideal especially if you wish to respond to competition, stay on top of current trends, and stay ahead of the curve.