Successful business leaders always rely on valuable data for making business decisions. Proper collection of accurate data helps businesses understand the customers and market better. Having relevant, complete, meaningful and actionable data helps in the growth of the company and implementing a data management initiative helps to improve the quality of the data. To make data management easier, all data can be converted into digital format with the help of data entry services.
Data management is the process of planning, controlling, and delivering data effectively in an organization. It includes functions such as practicing the disciplines in the development, execution, and supervision of plans, programs, policies and practices that protect, control, deliver and enhance the quality and value of information in the organization. It is a highly efficient method for handling multiple types of data. A proper data management strategy enables businesses to increase productivity, minimize risk, prevent data loss and enhance data quality.
Although a data management system offers many advantages, there are many misconceptions surrounding it. So, before implementing a data management initiative, let us understand the common myths people have about data management systems.
- Data management system is just another additional expense: It is important to have the support of the executive team to implement a new system. When you discuss the implementation of a data management system with executives, you may find that they have a blurred vision about the initiative and its value. But in reality, a data management system helps businesses to be competitive and also improve customer satisfaction. Today, customer needs are rising and they want quick response to their requests. To meet the customer needs, the sales team should research the customers, find target markets and find out what they want. A reliable data management system helps stakeholders throughout the organization to access the information they need.
- Implementing a data management system will need a major change that may disrupt the business: Many organizations take an organized approach to implement data management system. For starters, the best option is to take up a small-scale project to achieve small wins and to gradually create momentum. For example, begin with areas that are easy to manage and then expand to different parts of the business. This will ensure that the data management system can scale over time to meet the organization’s future requirements without disrupting the business.
- Only big companies can benefit from a data management system: Many small businesses have the misconception that data management is only for big companies as everyone is located in one place and employees communicate well. The resources of small companies are quite lean and while a minor impact on productivity may not be an issue for large companies, it can jeopardize small firms. However, the bottom line is that a good data management system could replace hours of fruitless effort with productive work. It can be a life saver as well as help recover rapidly and get back to business quickly.
- In the case of manufacturing firms, only those that use 3D CAD need a data management system: This is a misconception. All types of CAD files, both 2D and 3D, and other engineering documents have a lifecycle. The phases of this lifecycle include WIP (Work in Progress), Review, Released, and Obsolete. There are organizations that store all the files, irrespective of their lifecycle phase, in a shared folder. This can be problematic because there is the risk of using an obsolete file or drawing inadvertently. With a good data management system, this risk can be avoided because such a system would track when the lifecycle of a file changes and will automatically alert those affected. The system can also identify how and why the data changes and the other information that is affected by the changes. Thus, manufacturers are ensured traceability and audit ability that are vital for quality management certifications.
- Hiring professional help to implement data management system is expensive: Implementing a data management system is not a simple process of installing software. It requires the assistance of professional service providers who have experience with companies of varied sizes and in different industries. They know the best fit for a company based on best practices and workflows that support the firm’s needs.
- Data management system is a data governance solution: There is a common belief that data management system is a data governance solution but the truth is that data management system is the key technology component of a data governance initiative that helps enterprises achieve their goals through effective data management.
- Blockchain will replace data management technologies: There is a misconception that blockchain is a kind of database that will replace data management system, but that’s not true. A blockchain is a write-only ledger and cannot manipulate data. Blockchains neither enforce data integrity nor create rich analytics. Moreover, data integration is complex.
Big companies are placing increasing importance on the ability to understand and leverage complete data sets as a means of gaining competitive advantage. With the support from a reliable data entry company, all crucial data of a business can be converted into digital format and a good data management system implemented to manage huge volumes of valuable data in the most efficient manner.