To run a successful business, data needs to be managed effectively. Cybercrime has never been more of a threat than it is right now. Your business’s data is its most precious commodity, meaning if it falls into the wrong hands, the consequences can be devastating. However, without experience in data management knowing how to store, organize, and process raw data can be difficult.
If you are interested in learning about why data management is important then this post has you covered. In this article, you will learn about why you need to take care of your data.
In the introduction to this post, mention was made of the undeniable fact that cybercrime has never been more of a threat than it is today. The experts over at EIM Institute, a data management, literacy, and governance blog, say in one of their posts that only through proper management can data be kept safe from organized crime groups.
Data leaks can destroy your reputation. If business data falls into the hands of criminal gangs, customers are the ones who suffer. Good data management will prevent such groups from being able to use customer data to commit fraud.
An important part of good data management is proper storage. Experts recommend using database software to store customer and business data. While database programs offer some degree of automation, most data entry will have to be performed manually. Good data management will prevent redundancy, i.e., the same files being saved two times or more.
You only get a limited amount of storage in your database, so duplicate files will reduce your usable amount. Train staff in how to properly use database programs, so they do not accidentally make these kinds of input mistakes.
As mentioned in the opening point, data security is paramount to your organization’s success. Unless you introduce measures designed to repel cybercriminals, customer data will fall into the wrong hands. Fraud is the most likely outcome of a data leak. In other words, criminals will use customer data to make purchases and impersonate them online. A fundamental part of good data management is data privacy.
By following industry privacy regulations, the amount of data you collect from customers will be minimized. The less data you collect, the more unlikely it is that criminals will be able to weaponize people’s data against them.
In the past, businesses used physical storage devices to store data. Such devices are now obsolete. Businesses have turned to the cloud to store their data because it offers unparalleled security. One of the biggest advantages of cloud storage is that it makes it almost impossible to lose data, due to regular automated backups.
Data losses in the past could be devastating, causing businesses to lose precious information, like the contact information of regular customers. To safeguard against accidental or intentional data loss, make sure your cloud account’s backup feature is on.
A big problem for businesses when physical storage devices were used is file corruption. A single corrupted file has the potential to corrupt an entire database, putting all of the files stored alongside it at risk. With modern data storage, however, this is not as much of a problem. When corruptions do occur, backups can be performed, restoring databases to much earlier points.
Planning for potential database corruption is an important part of good data management. Unless you do prepare for such events, you will never be fully protected. Performing backups every time changes are made to files is the best way of safeguarding against widespread corruption.
The entire purpose of storing and archiving data is to make it easier for businesses to find it. Unless you take steps to properly store your data, then when it comes time to use it you could struggle to find it.
Investing in high-quality database software and training staff on how to effectively use it will benefit your company, making data more discoverable. If data is not stored in a way that’s designed to make it easy to find later on, a lot of time will be wasted trying to find it.
Earlier on, regulatory bodies were mentioned. In business, regulatory bodies are government agencies created to monitor companies, ensuring they are implementing and following fair and ethical practices. As a business owner, it is your responsibility to manage the data that you collect. An oversight agency will monitor you, making sure you are doing this. Such agencies introduce specific policies businesses are required to adhere to.
As long as you practice good data management, you never have to worry about receiving fines or even contact from such agencies. If the quality of your data management is brought into question, they will get in touch. When they do, fines usually ensue.
Antiquated storage methods like hard drives are anything but cheap. Using them to store data will cost you a fortune, especially when you consider that several devices are needed to store a single database, just as backups.
Modern storage methods are considerably more affordable, mainly because they are scalable. You only have to buy as much storage as you need. With physical devices, you instead have to buy the largest one you can afford, so later on, if more data needs to be added, you can do this.
Without customers, your business will be unsustainable. For all of the reasons mentioned above, it is clear that good data management protects customers. Taking steps to protect customers will, in turn, make them more loyal to you. You would be surprised how many people actually read the ‘Data privacy’ section on the websites of businesses that they shop with.
On a completely unrelated note, most data leaks occur from within, so an important part of your data management strategy should be interviewing and vetting staff, only hiring the most qualified candidates.
In business, reputation is everything. Organizations with lax security arrangements are more likely to experience leaks, which in turn, ruin their reputations. If your business’s reputation is of the utmost importance to you then implement secure data management processes and properly train staff.