Internet-enabled devices are becoming the new norm. Cars, fridges and other objects with internet connection capabilities generate, collect and send out a significant amount of data every day. In fact, 2.5 exabytes of information are produced daily, and the total amount of data in the world is set to hit 44 zettabytes within the next three years, according to EMC. The digital universe is growing exponentially, and organizations must be prepared to handle the influx of data traffic. Data management will be essential for future initiatives for a few key reasons:
1. Better access to insight
Under big data and the Internet of Things, organizations can no longer afford to store information in traditional ways. Unstructured information like photos and videos are collected and analyzed alongside text-based files. However, many businesses don’t fully about think how this information can be used for broader development and improvement efforts. Informatica’s Roger Nolan noted that most initiatives only focus on current status, rather than addressing bigger data problems, such as accessibility and effective management. By arranging information in an easily accessible resource shared across the entire workforce, anyone with a legitimate need can find, use and trust the information.
If a decision needs to be made quickly, staff cannot do so without the right insight. Cut out the middle man to access the information without IT assistance. This type of availability will bust down silos for new opportunities and help deliver value faster. Data management ensures that quality, relevant information will be ready whenever it’s required, providing critical observations to drive educated choices.
2. Clear picture for measuring results
Data management not only provides a solid basis for making decisions, it also serves as a means for measuring the results of your choices. A survey by McKinsey & Company found that 59 percent of high-performing organizations have the tools and expertise to work with unstructured and real-time data. The report determined that these businesses are more diligent when measuring results and tracking the impact of analytics activities on top-line revenues. Without these types of tools, it can be significantly difficult to determine if a decision has been valuable or has made an unexpected impact.
Use these results alongside real-time data to inform your future conclusions. You should have both short-term goals and a complete vision for where you’re going, which can be fueled by your data management efforts, Nolan stated in a separate Informatica piece. Standardize your management platform and ensure that existing analytics tools and applications will integrate seamlessly. With these assets on hand, organizations will be able to effectively strategize their future initiatives and adapt to emerging trends.
“Use your collected data to create true value for each client.”
3. Effective customer behavior prediction
The success of an organization largely depends on its ability to foresee shifts in customer behavior and adjust its services or products accordingly. Modern business initiatives center around providing a personalized experience for every transaction, but this is impossible to do without the right information. Harvard Business Review noted that big data and data management tools will be essential to predicting a customer’s next transaction based on his or her historical media preferences, shopping habits, desires, aspirations and interests. At the same time, this mindset yields only short-term advantages and will be offset as competitors become better at managing and leveraging data.
Instead of targeting customers for the next sale, use your collected data to create true value for each client. Organizations must determine what it will take to get a customer to remain loyal and what available information can do for customers. With easily accessible data, employees can augment products and services to provide the solution that’s best for a particular individual. Solving a critical problem for the customer will boost the likelihood of a longer-lasting relationship.
As more information is generated across the world, data management will be especially important to make sense of it all. Effective data management will help organizations make critical decisions, measure the results of their choices and provide a quality experience for each customer. With competition growing, it will be important for businesses to leverage data management to guide future initiatives.