Top ways data management services can increase your business efficiency
Let’s envision a hypothetical situation: Your company has been in the market for over 15 years and has worked on over 1,000 projects. Suddenly, you urgently need information about a project completed five years ago, as you want to recall the solution you proposed to the client back then. You find yourself manually searching for project details within code repositories, task trackers, or visual editors that your company hasn’t used for years or, even worse, that have ceased operation, and realizing that all your project data from five years ago has been lost.
To ensure all critical company information is always protected and structured, you can turn to data management services. In this article, we will not only try to explain their significance and objectives but also explore how industry giants and small businesses can leverage these services to enhance their processes.
What is data management?
Data management is the practice of collecting data from several digital sources inside the organization and storing it securely, efficiently, and cost-effectively. The objective of data management is to assist individuals and firms in effectively utilizing data while adhering to policies and regulations, enabling them to make informed decisions and maximize organizational benefits.
Due to the pandemic, many organizations in various fields had to switch to fully remote or hybrid work modes; as a result, companies of any size and industry now need to store loads of documentation, graphs, and customer info online. In these circumstances, it’s important for organizations to be true owners of this info and not rely purely on third-party online apps and services to store their data.
Nowadays, all online apps are quite vulnerable to cybersecurity attacks, as anything can happen to valuable corporate data inside them. Therefore, the efficiency of organizations highly depends on how conveniently and safely their information is stored and how deep is the data analysis.
But how can startup or enterprise owners become true owners of their valuable data if they are new to data management and coding? In this case, they can utilize data management services provided by a third-party IT company or a freelancer. In the following paragraph, we will explain what this service is and why both small businesses and large enterprises may need it.
What are data management services?
Data management services play a crucial role in handling and analyzing the vast amount of data accumulated by organizations in their day-to-day operations. These services ensure that data related to sales, project duration, customer information, internal processes, time tracking, and many other business aspects is stored securely in the organization’s data storage, organized, and readily accessible for analysis.
By efficiently storing and analyzing this data, organizations can gain valuable insights that can drive improvements in internal processes, inform decision-making, and save time by quickly retrieving relevant information from the extensive data collected over several years. But what exactly do data management services imply?
What does this scheme mean?
This scheme looks quite complex. But its main essence is that on the left side, there are various sources that collect data about the company and its operations, such as CRM systems, the company’s commercial apps, task trackers, repositories, POS systems, market research tools, and others.
All the data stored from various apps and online services goes into a data lake. In the data lake, all the data is stored in original and unchanged format. From there, it goes to the data warehouse and data models, where it is structured.
What do we get as a result?
As a result, all the data from the company’s sources is transformed into tables and dashboards. With their help, you can analyze data about your company according to various criteria and use it for promotion or making changes to internal processes in the company.
Why do we need this after all?
The biggest problem with third-party services and apps is that all of them collect data that can be easily stolen and lost during a data breach. Also, the company can change the apps it uses over time. For instance, the company might be on the market for 15 years, and at the beginning of its operations it might use one task tracker and in 10 years change it for another.
Although the functionality of the prior doesn’t satisfy the business owner, the data collected by the task tracker within the first 10 years might still be up-to-date, and it needs not be lost. That’s why the company needs to store it in its own data storage. In such a case, if the task tracker completes work and deletes all the valuable company data from its storage, the company will still have it stored safely and readily available.
If it’s already clear to you that you want to safely store your company’s valuable data, but you do not want to delve into concepts like data lake, data warehouse, or other complex technical terms, you can delegate this task to Ronas IT team. Within our custom software development for data analytics, we will help you transform unstructured data into a format that you can easily use and make sure valuable data from all the apps is owned by your company.
Do you want to establish clear data management in your company? Delegate it to our team!
How can data management services help your company increase business efficiency?
Companies experience thousands of processes daily, making it challenging for managers and leaders to track them all. Remembering specific details becomes even harder, particularly if the project or incident occurred a while back or recurs over a long period. This is precisely where data management services come into play for both small and large businesses. This stored data can be utilized in various ways. Below, we will delve into a few cases that illustrate how giant companies implement the data they collect to enhance their services and internal processes.
Business leaders often need help understanding the most profitable channels to advertise their products and services. They also find it challenging to determine the ideal pricing for their offerings and when and why to adjust these prices and a lot more information to make the right decisions based on data, not just intuition. Data management services can precisely answer all these critical business questions.
With data management services, a company can collect comprehensive information on all marketing channels, stages of the advertising funnel, competitor pricing, and even upcoming events that will impact pricing. This insights-rich data serves as a foundation for making informed business decisions.
Marriott Hotels case study
Marriott Hotels, a giant corporation in the hospitality industry, is an excellent example of a company using data management services. The company analyzes vast data sets and makes decisions based on this information. Starwood Hotels, one of the brands under Marriott, uses dynamic pricing that constantly changes based on various factors such as global and local economic conditions, weather, reservation behavior, cancellations, and several other aspects. This strategy has resulted in a 5% revenue increase per room. They even monitor events like concerts at Madison Square Garden to adjust the rates of their nearby hotels dynamically.
In essence, Marriott Hotels employs data management services to decide when to increase or decrease the prices of their services. Such meticulous use of data helps them stay competitive and profitable in the fiercely competitive hospitality market.
Make service personalized
Personalization is a modern development and business trend that enhances customer loyalty, makes a service more convenient for them, and entices them to use the service again, renew their subscription, or return for another product unit. Personalization has become possible thanks to companies’ ability to collect and store data about their customers and their behaviors, often facilitated by data management services.
Netflix case study
A prime example of personalization through data collection and analysis is the global streaming service, Netflix. Netflix leverages data management services to collect a variety of data from its subscribers — the timing and duration of their viewership, the content they binge-watch or consume gradually, and when and if they pause and resume their viewing.
Moreover, Netflix gathers information about the viewers’ genre preferences to personalize their experience further. They are even planning to create fully personalized trailers for their viewers. For example, a user who loves romance movies is more likely to watch a non-romance movie if the trailer consists of romantic scenes, appealing to their preference.
This genre analysis, along with many other metrics facilitated through data management services, helps Netflix maintain its top position among streaming services, boasting a high 93% retention rate.
Streamline business processes
Data management services can be used for diverse aspects of streamlining business processes, including real-time inventory management, demand prediction, customer personalization, predictive maintenance, HR analytics, and decision-making. Additionally, it aids in ensuring data consistency, enhancing data security, fulfilling regulatory compliance, and driving operational efficiency. We’d love to provide a few examples of how effective data management can help with internal process improvement.
Amazon uses data management to monitor real-time inventory levels and predict product demand, which maintains ideal stock levels and reduces costs. On the other hand, Google uses data management services to analyze HR metrics such as employee performance and job satisfaction. This data-driven approach aids in making informed decisions on promotions and strategies to enhance workplace satisfaction.
UberEats case study
Another prominent example is UberEats which used data management to break away from the competition for food deliveries and provide outstanding service to its customers. Keen to be known for delivering warm food, they sought to accurately predict food delivery times by modeling real-world conditions. They collected data on the usual preparation time for specific meals to accurately estimate when the delivery should be collected. This approach enables the drivers to pick up multiple meals without waiting for food preparation, with Uber incentivizing them through bonuses for each additional meal collected per trip.
In summary, data management services proved beneficial for everyone involved: they enabled drivers to make more deliveries and ensured clients received their meals just in time, enhancing customer satisfaction.
By the way, UberEats’ transition to a thoroughly arranged system of data management helped them to save at least 50+ man-hours weekly. If you want your company to save as much time on management of internal processes, contact Ronas IT and we’ll advise how to make this happen.
Contact us to establish clear data management within your organization.
Improve risk management
Risk management is an integral part of running a successful business. Risks are inherent in various forms such as financial risks linked to volatile currency rates, inflation, and interest rates. Operational risks are associated with inadequate or flawed internal processes or systems that cover issues related to supply chain disruptions, system failures, and fraud. Businesses also need to consider reputational risks and in certain instances, risks tied to weather conditions and natural disasters.
Example of implementing data management in manufacturing
To illustrate how data management can help mitigate risks, let’s look at the example of an automobile manufacturing company. It leveraged data management services to monitor and analyze real-time data from sensors installed on their assembly lines. These sensors collected data on machine performance, maintenance history, and environmental conditions. By continuously analyzing this data, the manufacturer could identify potential risks such as machine failures or inefficiencies ahead of time.
For instance, by monitoring this data, the company once identified that one of their critical machines was displaying signs of potential malfunction due to unusual heating patterns. This early detection allowed them to schedule a maintenance shutdown for that particular machine during a non-peak hour and replace the faulty parts, which would have otherwise resulted in significant operational disruption and financial loss.
Enhance data security
An extensive study by Truelist revealed a startling fact. Seventy percent of small businesses collapse within the first year following a significant data breach. The cost of these breaches is not negligible, with the average price of a data breach in 2022 standing at a formidable $4.35 million, inflicting substantial damage on businesses.
Certain companies resort to paying ransoms to fraudsters who hack their systems in desperate attempts to retrieve their valuable data. However, even this costly solution does not guarantee the full recovery of compromised data, emphasizing the paramount importance of preventive measures.
Data management services help enhance data preservation and security. Firstly, they allow a company’s owner to control data access among employees by deploying the previously discussed system layout. Secondly, in case of a data source breach, recovery becomes significantly easier. This is because the data is not solely stored in one location, but is replicated across multiple data storage systems, such as a data lake and data warehouse. Such strategies not only mitigate data loss risks but also make data recovery less costly.
How can small businesses implement data management services?
You might think that the examples provided are all related to business giants. But how can data management be applied to small businesses? Here are a couple of ideas:
Track changes in demand
Fluctuations in demand often occur as a result of changing market conditions. Keeping a close eye on these patterns can help small businesses anticipate and prepare for potential shifts in demand. This enables them to adjust their supply processes appropriately. Taking a proactive approach to meet demand and implementing data management services not only safeguards the financial health of businesses and saves them from overproduction and inventory mismanagement, but also ensures customer expectations and requirements are reliably met.
Personalize marketing materials
Personalization is a strong way to build connections with both new and regular customers and it can be easily implemented with the help of data management services. Adding customer names to emails and promotional items shows you value them and their support. Simple acts, like sending birthday messages, can also make customers think more positively about your brand.
Establish an effective marketing strategy
Gathering and studying customer data can help you learn what they like. This can guide your actions. For instance, if they favor a certain social media platform, you can center your marketing efforts there. This way, you’re sure your content reaches the right people.
Automate online communication
Automation lets businesses assist customers while freeing up employees for important tasks. Using AI chat tools can be a good way to apply your data. You can adjust responses based on what your customers need, making it a more useful tool for them.
Predict supply chain issues
Your suppliers and distributors may have patterns that can help you guess supply chain issues can occur. For instance, if distributors start delivering more during certain seasons, it could take longer for packages to arrive. Using historical data and predictive analytics can help you prepare for these changes, communicate more effectively with your customers, and adjust your supply to season sales. This essential data can also be collected and analyzed with the help of data management services.
In conclusion, the potential of data management services to enhance business efficiency is immense. Whether it’s monitoring customer preferences, optimizing supply chains, improving financial tracking, or enabling predictive analytics, data management services can deliver comprehensive insights that can drive strategic decision-making. While the specific applications of these services may vary based on the nature and scale of a business, the core principles remain the same. All businesses stand to gain from looking at their operations through the lens of data.
By the way, our Ronas IT team implements data management services to its benefit too. We have recently created our own storage for dashboards and analytics with the help of which we analyze our marketing efficiency, track the progress of development and UI/UX design projects, and find insights that help us improve our internal processes.
That’s why if you are searching for an agency to provide you with data management services, you can contact us. We’ll help you organize data storage and form the data into clear dashboards, while you will only need to analyze your company’s data and find valuable patterns.
Contact us if you want to look at your business through the lens of data but don’t know where to begin.