Proper Data Management Necessary for Business
Nowadays, businesses tend to swim in an abundance of data, which is, unfortunately, poorly managed. In this respect, a business consultant in Adelaide, James Price, affirmed that the frameworks for organising data competently are in the process of development as described in The Advertiser‘s article about this issue.
The Effects of Poor Data Management on Business
James Price, who is also the managing director of Experience Matters, participated in a research project with the University of South Australia. The project’s aim was to observe the implications poor data management has on business.
It’s crystal clear that information management plays a significant role in the whole business success equation. In spite of that, managers aren’t held responsible for it being properly organised. According to Mr. Price, this is contrasting with the management of individual assets including human resources, capital, and property.
Simultaneously, there’s a growing tendency of associating IT management with information management, both being separate unique concepts.
A distinguished Australian example happened in 2005 when Rio Tinto was unable to renew the lease over a range of Western Australian mining tenements. Junior company known as Cazaly Resources intervened, picking the leases for a sum of $2000, placing at risk a $300-million worth an asset. Eventually, Rio regained ownership, still, only after an enduring legal battle.
Mr. Prince cited another typical concern about data management. In this case, a government department was unable to find a key document. That action compromised their capability of defending themselves in an $18-million court action.
Mr. Prince indicated that the core reason that lies at the root of this stressing issue is that information management is, almost never, identified as someone’s key responsibility in a company’s functioning. More precisely, no one will be held liable if the information is not delivered in a timely, efficient manner to the people who require it.
Another reason would be the fact that there are high expectations concerning the behaviour around money management, but the perception of information management is entirely different.
At the same time, many companies overlook the enormous benefits of enhancing their information management practices, which are tangible and quite significant according to Prince.
What’s the Solution?
Mr. Prince’s associate – Doug Laney – developed a school of thought referred to as Infonimics. Its primary objective is to place tangible, comprehensive value on data management. Namely, the lack of proper recognition is manifested in many organisations in charge of collecting, managing and deploying information with less discipline in comparison with maintaining traditional balance sheets. At the moment, there is a significant number of excellent organisations that convey their information as a critical enabler, while the greater majority of board members fail to comprehend that. The first step each company should make is getting a handle on the business’ data management, and admit to its irreversible implications. Truth be told, every company uses technology, so it comes down to this – knowing what to do with it.
Source Article: Poor Data Management A Risk for Businesses from The Advertiser