As a company, you've probably heard statements to the effect of "data is the new currency of the future" or something similar. This is undoubtedly accurate given that renowned corporations have successfully used data-driven information to inform campaigns and market different goods to their target audience.
Additionally, good data management techniques have been able to improve operational efficiency and optimize business processes. These organizations have implemented efficient Enterprise Data Management techniques in order to unlock the power of data.
This article will be useful to you whether you are just beginning to plan your EDM strategy or trying to streamline it. We'll go over all you need to know about developing the best strategy for data management possible for you, the best practices of an efficient strategy, and the benefits you stand to gain.
What Is Enterprise Data Management?
Enterprise data is all the information in digital format that moves through an organization. This data can be anything from customer orders, data from a company’s CRM software, and logistic information. They can also be structured ( eg. spreadsheets) or unstructured (eg. images and video) data.
Enterprise Data Management then refers to all the processes involved in the management of this data. It involves practices that ensure data accuracy, availability, security, and governance.
What Are The Difference Between Enterprise Data Management And Master Data Management?
Master Data Management (MDM) and Enterprise Data Management (EDM) are often confused with each other because they are quite similar to one another. However, they do have their differences.
Enterprise Data Management covers all the processes involved in the lifecycle of data in a business. EDM also covers data integration which can be achieved through MDM for an online business.
While MDM is the creation of what can be referred to as a ‘master file’. It is a single file location with the customer, product, supplier, and other business data organized in a uniform and accessible manner. By doing this, MDM can
- Improve the quality of data
- Improve the process of sharing data between departments
- Reduce errors
- Improve the overall business processes.
Enterprise Data Management Strategy
Creating an enterprise data management strategy is an important process as it will guide how you use your data and ultimately dictate the value that can be retrieved.
You can incorporate the different elements below into your EDM strategy to help you decide what is best for your company.
The very first step is to carry out an assessment, this will include evaluating a number of important things.
- Evaluate your current data practices
- Asses your strength
- Assess your weakness etc.
This step can be time-consuming especially if you have a ton of data and are just beginning to incorporate strategy into your EDM, but it is necessary to get you started on an EDM plan that will be successful and produce results.
Define Deliverables And Process
After completing the assessment, the following stage is to openly state your deliverables, your goals, and how you plan to attain them. This will enable you to monitor the effectiveness of your EDM approach and guide the next course of action.
In this step, you can begin by clearly outlining Key Performance Indicators (KPI), the type of analytics to run for your company, how to store data, challenges that may come up, and how to tackle them as well as set up EDM governing policies.
Determine Policies, Standards, And Procedures
Establishing policies, standards, and procedures to guide Enterprise Data Management is an important part of your strategy.
Policies will help guide how data is handled to prevent security breaches and corruption of data. This is a crucial step, especially working with organizations that handle sensitive data ( eg. finance and health companies).
Developing standards and practices for handling data are equally crucial. The adoption of these will improve internal data flow and prevent data loss.
Give Emphasis To Quality
It is crucial that you do not cut corners with your strategy as quality results will be produced via quality procedures and technology. Quality outcomes will also fuel a company's rapid expansion.
Invest In The Right Technology And People
Once you've carried out all the necessary steps discussed above, do not neglect the actual technology and the people who will be handling the data.
There are different technologies that can assist you in effective EDM . The first step, "Perform assessment," is helpful in this situation. With the knowledge of where you are and what you have, you can determine the tools you need to get to where you want to be.
It will be profitable to have a data management expert, as well as conduct employee training as part of your EDM strategy. An effective strategy can be hindered if the individuals handling the data do not have the required knowledge needed.
Why Is Enterprise Data Management Important?
EDM is important because it helps organizations store data in a manner that is accessible, secure, and readily understood. This data can then be used to data-driven decisions for the progression of an organization.
Benefits of Enterprise Data Management
These are some benefits you can enjoy when Enterprise Data Management Practices are observed:
Removes Hidden Risks
EDM processes can effectively minimize risks by effectively detecting corrupted or redundant data that may be problematic in the future.
With high-quality data that is easily accessible, organizations can make well-informed decisions that are trusted and reliable.
Streamline Operational Processes
EDM can help make operational processes easier and with effective data management , opportunities for improvement can be highlighted for an even more frictionless workflow.
Data Sources Of Enterprise Data Management
This is a source of data that is retrieved from smartphones. This kind of data may be structured or unstructured.
Videos are an unstructured form of data that can be analyzed and hence effectively managed to produce useful information.
Social media data can be collected from social media platforms such as Facebook, Twitter, Instagram, customer review sites, etc.
Photos are another form of data that can be classified and managed for different purposes.
Financial information can be retrieved from a balance sheet, income statement, cash flow statement etc.
This source of data are numbers allocated by companies to identify different items in their catalogs in the organization’s system.
Data that can be found in a warehouse and effectively managed can also be graphic format.
Key Components Of Enterprise Data Management
Effective Data Management has a few key components.
Data governance is a set of policies that are established to ensure that data is trustworthy and reliable. It implements structures that preserve the quality and precision of data.
Data integration refers to the process of making data accessible to all key actors in a company. That is, integrating all forms of data in a format and location that all departments of an organization can access and use.
To make the most out of data, it must first be accessible. Data accessibility involves retrieving data in a quick and stress-free manner to serve different company-wide purposes.
Data security ensures data is stored in a manner that is free from theft, leakage, and destruction while handling data.
A data warehouse is a central collection of data from multiple sources that can be examined to make informed decisions. Transactional systems, relational databases, and other sources all regularly and continuously feed data into a data warehouse.
Enterprise Data Management Best Practices
These are some practices that can effectively guide your EDM strategy.
Catalog All Your Data
Having an organized inventory of your data(catalog) involves tagging each data set with metadata. This helps to keep track of data and eases accessibility of data and can greatly improve workflow within an organization.
Prioritize Governance And Security
An EDM best practice is to recognize the importance of data governance and security. Data that is unreliable can be produced when a business' governing policies are ignored. Furthermore, an absence of secure data could expose information to loss and corruption. This may result in an organization's integrity being jeopardized.
Educate Your Team On The Importance Of Data Management
The value of data management to a company's expansion should be communicated to your employees. This provides your team the chance to buy into the objective and its advantages and thereby put out the effort necessary to carry it through.
Executive Leadership Is Needed
It is crucial to have executive leadership that has a good grasp of the EDM objectives and goals. Furthermore, these leaders and all other employees involved should receive regular training sessions to ensure they are up to date on data regulatory policies, processes, and standard.
Improve Data Access
Accessible data is a priority in EDM. This enables employees easily utilize data for different business processes for the advancement of the organization.
What Is An Enterprise Data Management Software?
Organizations can use EDM software as a tool to effectively manage data.They help maintain the free flow of data hence improving the productivity of an organization.
Types of Software
There are three types of Enterprise Management Software:
● Customer Relationship Management: this software is responsible for the management of an organization's relationship with its customers.
● Supply Chain Management: SCM is responsible for all the processes involved in the movement of goods, data, and finances in an organization.
● Enterprise Resource Planning: this software helps organizations manage key business operations (eg. accounting and resource management)
Data that is poorly managed can be detrimental to a business. It affects everything from drawing wrong business conclusions because of incorrect analysis to poor communication at work.
Thus employing a good Enterprise Data Management Strategy would go a long way toward the success of any organization. It can give an organization a competitive edge, increase productivity and produce insights that drive revenue.
For additional insights and to get started managing your data, your way, head over to the Why Capella page and see how our team incentivizes and delivers value to your organization.
Who Is Responsible For Enterprise Data Management?
EDM can be handled by database administrators, IT administrators and IT project managers.
What Are The 5 Data Management Functions?
- Collection, processing, validation, and storage of data
- Integration of data from different sources
- Ensuring accessibility of data and data recovery
- Establishing data governing policies
- Establishing data protection and securing data
Who’s In Charge Of Enterprise Data Management, And What Do They Do?
Database administrators, IT administrators, or IT project managers are most frequently employed as enterprise data managers. They are in charge of overseeing all the processes involved in the full data life cycle for your company.
Is a solution and ROI-driven CTO, consultant, and system integrator with experience in deploying data integrations, Data Hubs, Master Data Management, Data Quality, and Data Warehousing solutions. He has a passion for solving complex data problems. His career experience showcases his drive to deliver software and timely solutions for business needs.
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