The overall success of a business depends on many factors, including leadership, vision, economics, competition, and analytics. But it is data that is the driving force behind a business’s success or failure.
According to Ovum Research, a business receiving poor quality data could lose revenue of at least 30 percent. Business leaders across the board are now recognizing the significance and importance of using high-quality data to ensure a successful business–and making changes to do so.
Smart Data Management
For many businesses, the answer is to invest in high-tech data processing applications and advanced predictive analytics to rein in the data and make it work for them. However, some businesses are finding that even the latest data processing equipment doesn’t help when the core data is a mess.
Expert business analyzers have found that there is a better way for companies to manage data; it’s called master data management (MDM). Although this isn’t a new concept, it has come to the forefront for many business leaders because of data’s vital nature.
Leaders know the importance of collecting data on customers, suppliers, products, location, assets, and employees. Although the overall success of a business depends on this critical data, it can be hard for managers to focus on it because of other priorities, business mergers, or siloed systems.
Smart Data Analysis
Eventually, though, it becomes glaringly obvious that there are gaps between what they do know about these critical data categories and what they should know. Such a realization compels leaders to start looking at these critical concepts:
- Sales are optimized by knowing the customer, the product they purchased, the location of purchase, and the supplier.
- Recalls can only be effectively and efficiently handled when the business knows where the defective part came from, where it went, and where the products are located.
- Marketing new drugs requires knowing the researcher, the research site, compounds used, and test patient data.
- Product models, date of manufacture, and location of manufacture play an important role in meeting regulatory reporting guidelines.
Many times, this data is easy to manage until the business begins to grow. The larger the business gets, the harder it can be to track the data. As the data becomes fragmented across applications, it’s harder to see the “big picture.”
Moreover, the data keeps changing when the following occur:
- Customer demographics change.
- Suppliers move or change.
- New products launch and old products discontinue.
- Assets are gained or retired.
All of these changes result in inconsistent, scattered data that’s hard to find and possibly not accurate. This costs businesses time and money and can result in frustrated, overworked employees.
Adapting, forward-thinking leaders can take a different approach:
- They can locate the data glitches.
- They can focus on the process of receiving and storing data.
- They can find a product that is designed to manage business data from one location (like MDM).
MDM can help a variety of industries achieve a streamlined method of data management by helping marketing teams optimize the cross-sell and up-sell process, helping the procurement team optimize sourcing, and helping the compliance team manage data needed to create regulatory reports efficiently. MDM brings all of a business’s data under one umbrella, resulting in the most up-to-date, accurate, critical business information possible to help businesses thrive and grow.
Despite the management style of choice, it’s clear that smart approaches to data analytics is what puts one business ahead of another.