The increase in the volume of data companies are working with is a long-term trend. That growth happens at a different speed in every industry, but none is safe from the exponential growth of the information they use. This trend is two faces of the same coin. On the first side are challenges, and on the other side are opportunities. We will lead you through the main challenges and the opportunities that might result from carrying out challenges properly.
Challenge: Is it necessary to back up every piece of information?
The quick answer is no. But the only way to find the right path is to take time to create a data strategy aligned with your business plan. This strategy must contain what the company needs to operate in the present and future. Well-defined criteria are crucial in this matter.
Back up unnecessary data will make company information structure and increase all derivated costs. Additionally, because it is irrelevant data, it will not add up, becoming impossible to obtain any benefit to cover the derivated costs. If, on the other hand, you do not back up essential data, the company perspective will be biased, and decisions will lack trust.
Saving the appropriate data nurtures a work environment advantageous for data use. Counting with the proper data sets enhances the company´s vision and improves competitiveness by making it easier to access data. It also helps predictive analytics accuracy because data volume is a crucial factor. It enhances the creation of business plans with a higher success rate.
Challenge: What is the best option for data storage?
When choosing data storage, you should evaluate factors like storage size, growth speed, scalability, security, and availability.
Every company uses as many data sources as they need and tend to be different. It is another aspect to keep in mind when making a decision. The core reason is that it should guarantee seamless integration within your whole digital ecosystem. Ignoring this point can result in a disconnected data source or the necessity of acquiring new connectors, which implies new costs.
A data storage option that meets changing business needs allows for keeping the company competitive by supporting data availability. Choosing a convenient data storage option helps to keep optimal answer times and avoid slowing or stopping processes related to data in the company.
Challenge: What updating data model is the most appropriate?
It is a question you need to answer almost at the same time when choosing your data storage. In this matter, you need to define how frequently you will run updates on the data warehouse. Also, decide if data updating will be active or passive. In other words, updating will happen every time there is a request or not. In the last case, it is essential to schedule it according to the data volume, type, and dynamics of the business itself. The principal criterion for making this decision should be the company. For example, if your team needs information from the same day to provide attention to your clients, you should go for passive updating. That is, it is updated every time a query is made. In this way, the data will correspond to the date and time of the consultation and not, for example, the previous day.
If, on the other hand, there is no need for access to the latest version of the data, an active update can be set, for example, once a day. It optimizes storage and upgrades resources. This option is helpful when working with high volumes of data, for example, national-wide sales reports of supermarkets chain.
The right choice will help to use resources wisely and not hinder business operations. It allows you to keep your costs low, and your business will perform seamlessly.
Challenge: How much invest in data management?
The core of this challenge lies in finding the criterion that fits better. Commonly, have to answer for tool selection, license acquisition, etc. So we share a crucial touchstone to transform this challenge into an opportunity.
The exact investment will vary from company to company, but the main criteria should base on a vision that points to an operation that contributes to a healthy ROI (return on investment). The value that current society gives data grows exponentially, which is why proper management will positively impact the P&L (Profit and Loss) balance. This value lies in its contribution to a more accurate decision-making process. Based on business-specific information, which reduces the impact of human biases. Having the tools to manage the data is essential to materialize this use.
We recommend two tools that help you bring the opportunities presented to your company. Leave data silos behind and centralize your entire digital ecosystem in a data hub powered by artificial intelligence, such as DataGate. Plus, get innovative insight into data with the business intelligence tool BI4Web. If you want to know more about these tools, contact us. We will help you start your path toward profitable management of your data.