“By the end of 2021, the volume of data and information created, captured, and consumed worldwide will be 80 billion terabytes— and that number is expected to double by 2025.”- Statista.
“Data is the new oil”- if your job concerns around data or a related field, you might have come across this quote cited by mathematician Clive Humby. However, it gained more momentum after the Economist published a report on “the most valuable resource is no longer oil, but data”.
What is Enterprise Data Management?
Enterprise Data Management (EDM) is an organization’s capacity to integrate, govern, secure, and circulate data from multiple data streams. EDM is as much about managing people as it is about managing data. It is about making sure that accurate and timely data should provide people of the organization to function.
The Paradigm Shift
Fundamentally, there hasn’t been much change as to how data is being collected, designed, and stored from how it was done 10, 20, or 30 years ago. However, the core problem was in providing access to data in a way business really needs it- completely well organized and in real time. Many organizations not only had the data that business needs rather have thousands of copies of that data scattered between applications, legacy datastores and massive data lakes.
The data management industry is on the brink of another generational shift, it isn’t only driven by necessity, rather by increasing demands from consumers and regulators. This is an inevitable and fundamental shift from an application-centric view of the world to a data-centric one.
According to IDC, most businesses manage data that is growing at a rate of 40% per year. The variety of both structured and unstructured data that organizations are dealing with have also increased.
Therefore, it is imperative to create a single source of truth and making it accessible to the organization is where, enterprise data management (EDM) takes a centre-stage.
Let’s dive into the components that makes a good EDM system.
Components of Enterprise Data Management – EDM
- Master Data Management– Master Data Management (MDM) is a method used to define and manage an organization’s critical data and provide a single point of reference, leading to fewer errors and less redundancy in business processes. Master Data Management tools collect and aggregate different data types into one source and act as one clean and consistent source of truth for modern, data-driven organizations. It streamlines data across departments and systems within an organization. Learn more about Master Data Management.
- Data Governance– Data Governance is a collection of practices and processes that helps to ensure the proper management of data assets within an organization. It encompasses both the strategies and the technologies required to achieve data usage that complies with the regulations, restrictions, and policies applicable to that use. It includes data cataloguing, data lineage, data usage labelling, data access policies, and much more.
- Data Integration– It combines data from various data sources into a single unified view. By delivering unified data from numerous sources, data integration simplifies the Business Intelligence or BI analysis process so that businesses can easily view & analyse to derive actionable information. There are different types of data integration, including virtualization, propagation, federation, and consolidation.
- Data warehouse– It refers to collecting and analysing data from various sources to provide meaningful insights. It is the electronic storage of a large amount of information by an enterprise designed for query and analysis.
Benefits of Using Data as an Asset
Here are some ways in which data can impact organizational efficiency, bottom line, and even compliance with regulatory standards.
- Informed & Accurate decision making – Organizations can use data to make critical business decisions and minimize financial losses. Predictive analytics can suggest what could happen in response to changes to the business, and prescriptive analytics can indicate how the business should react to these changes. It allows you to better understand the impact of any decision on the business.
- Streamlines operations– Organizations can improve their operational efficiency through data. Gathering and analysing data about the supply chain can show where production delays or bottlenecks originate and help predict future problems.
- Enhance security– Organizations can use data analytics to diagnose the causes of past data breaches by processing and visualizing relevant data. IT departments can use statistical models to prevent future attacks.
- Improves customer experience– Organizations can leverage data to determine their customers’ choices and preferences. Data can help organizations learn the most cost-effective way to address customer questions and issues, reducing problem resolution times, thereby improving customer experiences.
In 1975, around 83% of a firm’s valuation was accounted for by its tangible valuation. However, the scenario is changed, and now close to 90% of an organization’s valuation can be accounted for by its intangible assets, brand, goodwill, and data, of course.
Data everywhere speak about customers- what they buy, when they buy, how often they buy about suppliers- where they are, how reliable they are, and what capabilities they have? Research suggests that organizations that have climbed the data maturity ladder are likely to benefit from 4-6x their competition. So, if all this is true and data is potentially one of your most valuable assets, you should treat it like one by investing in Enterprise Data Management.