The steep cost of a poor data management strategy

It’s a
time-tested
truth:
Getting
a
head
start
improves
outcomes.
In
sprint
races, it’s not
always
the
fastest
runner
that
wins,
but
the
one
with
the
best
start.
And
marathoners
know
that
how
they
run
their
first
few
miles
often
determines
how
they
finish.
And
before
runners
even
enter
a
race—whether
a
sprint
or
a marathon—they
have
prepared
with
months
or
years
of
training.
The
same
is
true
in
education.
In
one study,
an
MIT
economist
found
that
attending
preschool
increased
college
attendance
by
18%. That’s an
almost
20-year
head
start. 

But
head
starts don’t need
to
take
years
to
make
a
difference,
especially
in
the
fast-moving
world
of
technology
where
the
window
of
opportunity
is
much
shorter. In
technology,
hesitate,
and
you
may
not
be
able
to
catch
up
to
your
competitors. The important
point is
to
start
and
keep
moving.
As
the
Chinese
proverb
wisely
suggests,
“The
best
time
to
plant
a
tree
was
20
years
ago.
The second
best time
is
now.”

Such
is
the
case
with
a
data
management
strategy.
It
reigns
as
one
of
the most
commonly
missed,
foundational
opportunities
in
technology
today,
creating
a
growing
gap
in
capabilities.
That
gap
is
becoming
increasingly
apparent
because
of
artificial
intelligence’s
(AI)
dependence
on
effective
data
management.
Without
it,
businesses
incur
steep
costs,
but
the
downside,
or
costs,
are
often
unclear
because
calculating
data
management’s
return
on
investment (ROI),
or
upside,
is
a
murky
exercise. 

For
many
organizations,
the
real
challenge
is
quantifying
the ROI benefits
of
data
management
in
terms
of
dollars
and
cents.
Unlike
other
business
investments,
the
returns
may
not
be
immediately
apparent
because
the
benefits
accrue
over
time. This
places
a
major
focus
on
the
initial
investment
instead
of
the
potential
outcomes
and
ROI,
often disguising
data
management’s incredible
value. Let’s
look
at
how
we
can
resolve
this—while
there
is
still
time
to
do
so.

Data dependency

Regardless
of
your
industry,
data
is
central
to almost
every business
today.
Leveraging
that
data,
in AI
models,
for
example, depends
entirely
on
the
accessibility,
quality,
granularity,
and
latency
of
your
organization’s
data. Without
it, organizations
incur
a
significant
opportunity
cost. A
few years
ago, Gartner
found that
“organizations
estimate
the
average
cost
of
poor
data
quality
at
$12.8
million
per year.’” 

Beyond
lost
revenue,
data
quality
issues
can
also result
in wasted
resources
and a damaged
reputation. Data
management
underpins
many
other
transformational
capabilities
and
competencies
that
can
elevate
business
outcomes,
making
it
a
crucial
enabler
of
modern
business
operations.

Consider
wind
turbine
operation.
Data
management
enables
the
use
of
multiple
data
sources
for
real-time
monitoring
of
a
wind
turbine’s
operating
condition.
This
allows
predictive
maintenance,
which
helps
prevent
unplanned
downtime
for
more
consistent
energy
production.
Avoiding
wind
turbine
repairs
is
vital.
Repairs
can
require
on-site
cranes that
are
large
and
expensive
to
use,
costing

$10,000-50,000
a
day to
rent.
And,
it
takes
about
20 truckloads
traveling
about
600
miles
per
day,
to
transport
one
crane,
comprising
50%
of
the
crane-related
costs. That’s why
preventing
the
need
for
crane-related
repairs
in
the
first
place
is
a
big
cost
saver—the
ROI
of
which
depends
on
effective
data
management.

Wind
turbines
are
just
one
example.
The
benefits
of
data
management
are
universal. 

Data
management
defined

You
may
be
wondering
what
data
management
means.
Simply
put,
data
management
is
a sophisticated process involving various
stages, such
as data
storage,
processing,
analysis,
and
visualization. Data
management
requires
dedicated resources,
specialized
software, and
skilled
personnel
that
collect,
organize,
store,
analyze,
and
protect
data.

That’s a
lot
of
capabilities
and
they
require
investment
and
time
to
achieve. However,
the
benefits of
effective
data
management
can
far
outweigh
the
costs,
providing
businesses
with
a
competitive
advantage,
insights
into
customer
behavior, and
improved
decision-making
capabilities.
The
cost
of
not
doing
so
creates
a
competitive
advantage
gap
over
those
with
a
head
start.

That
gap
can
make
a
difference
in
human
health
as
well.
For
example,
smart
hospitals
employ
effective
data
management
strategies.
Streaming
data
helps
to
capture
patient
vitals
and
monitor
patients
more
efficiently
and
effectively.
This
helps
to
improve
real-time
care,
hasten
the
availability
of
patient rooms and
accelerate
better
patient
outcomes.

Data
management’s
ROI

Customers
often
ask
me
how
to
“make
the
case”
for
data
management.
To
derive
data
management’s
ROI,
your
organization
can
use
your
relevant
key
performance
indicators
(KPIs).
This
includes
metrics
beyond
traditional
financial
and
operational
measures,
including
customer
retention
and
advocacy,
employee
satisfaction
and
productivity,
societal
and
environmental factors,
and
ethical
outcomes. 

To
give
you
a
head
start,
here
are
some of
the
organizational KPIs
that help
capture
data
management’s
ROI:

1. Improved
   operational
   efficiency: Effective
   data
   management
   can
   streamline
   business
   processes,
   reduce
   manual labor and
   improve
   the
   accuracy
   of
   data-driven
   decision-making.

2. Increased
   revenue:
   By
   using
   data
   to
   identify
   new
   opportunities,
   improve
   customer
   engagement and
   optimize
   pricing
   strategies,
   businesses
   can
   increase
   their
   revenue
   and
   profitability.

3. Reduced
   costs:
   Data
   management
   can
   help
   businesses
   identify hidden inefficiencies
   and
   reduce
   wasteful
   spending,
   leading
   to
   cost
   savings.

4. Enhanced
   customer
   satisfaction:
   Businesses
   can
   personalize
   their
   offerings
   by
   using
   customer
   data
   to
   improve
   customer support
   and
   enhance
   the
   overall
   customer
   experience.

5. Reduced
   risk:
   Effective
   data
   management
   can
   help
   businesses
   mitigate
   risks,
   such
   as
   data
   breaches,
   compliance
   violations,
   and
   reputational
   damage.

Your
data
management
head
start

Data
management
is
a
critical
aspect
of
modern
business
operations.
Despite
its
potential
benefits,
many
organizations
grapple
with
having
real
ROI
conversations
about
a
data
management
strategy.
To
maximize
the
value
of
data
management,
we
must
shift
our
focus
from
the
cost
of
implementation
to
the
potential
value
it
can
provide—and
the
opportunity
cost
of
not
doing
so.
By
identifying
and
measuring
the
key
performance
indicators
that
matter
most,
you
can
make
informed
decisions
about
your
data
management
investments
and
gain
a
head-start
competitive
advantage
in
today’s
data-driven
world.

Learn
more
about
data
architectures
in
my article here.

Read
about
Dell
Technologies
Data
Management here.

***

Dell
Technologies
and
Intel
are
helping
organizations
advance
data
management
strategies. 

“Generating
actionable
insights
is very
challenging,
and
now,
more
than
ever, it’s critical
to
harness
data
to
drive
real-world
solutions.
Intel
is
proud
to
be
working
with
Dell
to
deliver
modern
data
and
analytics
solutions
that
help
organizations
unlock
the
untapped
value
of
their
data.”
 Gilberto
Vargas,
Intel
Corporate
Vice
President
and
General
Manager,
Data
Center,
and
AI
Sales
&
Marketing.

About Author

AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

See author's posts