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Importance of Data, Data Management and Analytics
Data - Most of today's businesses are looking for new ways to satisfy their customers to the maximum possible level. To serve the customers better, businesses should be able to know the behavior of the customers and also the performance of their competitors. A retail chain analyzes their inventory data to stock up goods at the right place and buying trends of customers to come up with new promotions. A social network analyzes its users’ data including demographics, likes and dislikes, shares and comments etc to include personalized ads. To perform all these kinds of analysis, businesses need data. In other words, data is the core asset of any business.
Data Management - Effective data management helps an organization to increase revenue, reduce cost, mitigate risks, achieve regulatory compliance and improve inter-operability. In fact, there is a direct relationship between the accuracy of data which is achieved through effective data management and correctness of decisions. So, a business that manage its data well and makes best use of it at the right time will be able to make better decisions and hence gain competitive advantage. In other words, the success of any business highly depends on how the business collects, stores, analyzes, processes and manages its data, because efficient use of data leads to knowledge and information which in turn results in valuable business insights.
Analytics - It is a very broad term that refers to the process of transforming data into insight and hence enabling better decision making. Data is important to any business; but analytics is more important in today’s world of data explosion. Analytics, as the name indicates, helps us analyze large amounts of dynamic data from various sources to gain insights that were hidden. Better insights result in efficient decision making which of course leads to reduced cost, increased profitability and crucial performance improvements.