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What is data management and why is it important?

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Last editedMar 20213 min read

You don’t have to work in the tech industry to need a data management system in place. Through the course of any business operations today, vast quantities of data accumulate. Find out what data management means, and why it’s important to have a strategy.

Understanding data management systems

Data management is the process of collecting, storing, and using data effectively. Through these processes, businesses can optimise their data use to make more informed decisions. Data comes in through all of the everyday actions that make up a business’s general operations, from ecommerce to social media and logistics.

As a result, data management has a very wide scope. Typical actions involved with this field include:

Storing data, both onsite and in the cloud
Creating an infrastructure to create and update data as needed
Clean data for greater organisation
Use data in analytics and apps
Secure data in line with privacy regulations
Archive data when it’s no longer needed
Destroy data according to all compliance regulations

The most effective data management tools take the needs of multiple users into account, both on an individual and company-wide level.

Why are data management plans important?

Data management offers a wealth of benefits. It lets you track and measure data taken from all of the interactions that run in the background of your business, from software applications to network infrastructure. You can see what’s working and what isn’t, which helps with future planning.

From a marketing perspective, data management also allows you to create a more effective user experience. You can use targeted marketing based on customer interactions, for example. By analysing buying habits, businesses can improve ecommerce platforms.

Data management tools also make a business more secure, protecting sensitive information. You’ll save money by maintaining standards of compliance, while storing only the data you need most.

What’s involved with a data management system?

Data management plans involve a highly refined set of skills, with numerous specialties contained within the wider field. Here are a few of the typical types of data management.

Data stewardship: Data stewards use existing information management policies and ensures that they’re deployed correctly across the company interests. They’ll pay close attention to data collection practices and enforce rules as necessary.
Data governance: Data governors work at a higher level than data stewards, overseeing all aspects of operations. They set the rules that data stewards and security officials follow, ensuring that all actions are following the master data management strategies.
Data security: This is perhaps one of the most vital aspects of data management for businesses, who need to protect user privacy and incorporate the appropriate security considerations at all levels of the organisation. Data security includes encryption, safeguarding against unauthorised users, and keeping sensitive details safe.
Data storage and warehousing: This refers to the challenges presented by collecting and storing vast quantities of data. They look for data management tools, including data management software, to help assist with this task in a more organised way.
Data architecture: How does the data fit into an organisation’s overall enterprise? Its data architecture lends structure. This is different to data design, which looks more at the design of analytics systems.

These are just a few of the core elements involved with data management. It’s important to look at the issue from multiple vantage points to come up with the most effective data management system for your business.

How to get started with data management tools

Because it’s so far-reaching, it may seem like a daunting task to set up a new data management plan. Break this task down as you would any other new project.

Make your intentions clear. Why are you organising your data? Are you interested in making internal changes, improving your marketing efforts, or streamlining security? Take it one step at a time.
Examine the data you already have. Do you have a large quantity of random files to organise, or is your data stored securely in cloud-based software?
Assign a team to work on the task. You might need to hire new employees to tackle your data management plan, depending on its scope. Discuss your goals before getting started.
Choose a platform, comparing the features of various data management software to find the best fit. Online services assist with your planning stages, offering templates that define naming conventions, file formats, and archiving processes on your behalf.

With a data management plan, team, and platform in place, you’ll have everything you need to put it all into action. On a final note, remember that data management is an ongoing process that will need consistent revision.

We can help

GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.