We rely on data to make decisions in our business. By default, many people think more information drives better decision-making. The latest technologies provide us with a plethora of data from website tracking tools, IoT devices, business applications, and phone activity. Within those data sets, you can learn about customers, including demographics, web histories, shopping preferences, biometric data, and so forth.
What if we told you there is such a thing as too much data? When people work with too much data, they must search for valuable information through mountains of clutter. According to an Ensighten survey of over 600 companies, 62% of respondents stated they often feel overwhelmed by the amount of data they have. Also, 85% said they are not able to use the data fully.
What are the benefits of extracting and applying high-quality data?
Data becomes useful when you turn it into information. Dashboards with charts, scorecards, grids, and graphs can provide actionable insights that help the business grow. When you succeed in extracting and applying excellent quality data, you can:
- Identify new customers
- Increase customer satisfaction
- Optimize sales processes
- Create more targeted marketing campaigns
- Improve staff workflows
- Enhance product and service offerings
- React to industry marketplace changes quickly
What are the drawbacks of accumulating too much data?
However, accumulating too much data can create a needle in the haystack situation. When collecting data, many tend to:
- Not mine data with a purpose
- Keep data long after its usefulness passed
- Not use the data to change their services
- Not train managers to work with the data
- Use data to back up a gut feeling
- Not spending enough time analyzing the data
Managing irrelevant data is costly for businesses in worker hours. They must curate, download, analyze, convert, archive, and protect the data. Plus, you must also consider reoccurring storage costs, whether it is on a company-owned storage device or in the cloud.
Besides, collecting more data makes your business a bigger target for cybercriminals. Each data set increases the surface area for an attack. Cybercriminals can leak data to the public, engage in fraudulent activities, and steal money from your business.
How can your organization collect data in a structured way?
A structured data plan can assure your business receives actionable data while minimizing legal liabilities. You will need to answer these questions whenever you collect data sets:
- What do we need to collect?
- How will we use the information in the business?
- Are we able to analyze the data effectively?
- Who will access the data?
- How will we keep the data protected?
- How long will we keep sensitive data?
- How will the public react if they know we collected the data set?
- What is our crisis plan in case of a breach?
If you would like to discuss setting up a structured data plan, you can contact us at 877-794-3811 or info@swifttechsolutions.com. Also, if you are unsure if your data is safe on your devices and in the cloud, you can ask us about our security packages.