Companies arguably have access to more data than ever before; the issue is what to do with it! That’s where data management comes in. Data management is simply the practice of collecting, organising, protecting, and storing a business’s data.
In today’s data-driven world, small and medium-sized enterprises (SMEs) need to adopt effective data management strategies to unlock their full potential.
A well-implemented data management strategy enables SMEs to make sense of data to analyse and interrogate it.
SME’s can then use what they learn from it to:-
- Make better-informed business decisions
- Boost productivity
- Improve customer experiences; and
- Gain competitive advantage
However, in many cases a lack of resources and expertise can hold companies back.
So, how can SMEs tackle data management? Here are some suggestions.
Identify Objectives and Goals
Start by identifying what it is you hope to achieve through data management. That might be, improving operational efficiency, increasing customer satisfaction, or identifying new business opportunities. Once you know that, you can focus efforts and align activities with those business objectives in mind.
Your objectives and goals are likely to change over time, that’s to be expected – but if you don’t first know what you want to achieve, you don’t know what to collect and how to analyse it.
Identify Available Data
Start by pulling together a list of the types of data currently generated and/or collected. That’s likely to include things like:-
- Customer information
- Financial records
- Sales data
- Operational information
From that list, you can determine which will allow you to achieve your objectives, and you can concentrate on managing and leveraging that data.
Develop a Data Management Plan
You know what data is available and you know what you want to do with it; now you need to make sure you protect it. A data management plan is intended to ensure data quality, integrity, security, and compliance with legal requirements, such as the General Data Protection Regulation (GDPR).
It should also include disaster recovery procedures aimed at ensuring business continuity should there be a data breach or system failure.
Develop data governance policies and procedures, and schedule regular audits and reviews to make sure everyone is practising good data governance.
Invest in Data Management Tools and Software
Investment in data management tools and software allows companies to effectively handle and analyse data. Things to consider include a robust data storage and backup system and adopting cloud-based solutions. Security measures such as encryption should also be included.
Monitor and Improve
Data management is an ongoing process that benefits from monitoring and improvement. Evaluate data management practices against your company’s goals and objectives, set and measure key performance indicators (KPIs), and gather feedback from stakeholders.
In addition, team training on data management issues is essential. Everyone needs to understand the requirements, and the implications of getting things wrong.
It’s also prudent to make sure you stay informed about emerging technologies and trends in data management to ensure the strategy remains relevant and up to date.
