Data Management ROI
Jan 18, 2021
Today’s business executives must master the fine art of driving down costs and increasing operational efficiency. A key lever for improving both of those metrics is data.
The primary objective of a database is to organize information so that an organization or consumer can easily access it. As the information stored grows, ensuring this data is secure, accurate, and accessible becomes ever more pressing. However, as businesses become increasingly reliant on data management solutions, they turn to their marketing teams with one central question — what is the return on investment (ROI)? With a complex web of internal and external customer interactions at play, measuring database ROI can be tricky, but numerous benefits.
When it comes to data management, how you think and approach projects can be critical. Many CMOs say they don’t receive enough marketing insights to make data-driven decisions. Some say Marketing could do more but doesn’t know-how. With so much noise, you could quickly become drowned out by your competition. To build data into a strategic pillar for the company rather than an afterthought, we need to build trust with our CMOs by making sure we can justify ROI. This means developing strategies to help the marketing team see that there are concrete reasons for initiatives and new investments into data.
Data is growing at an exponential rate. Most companies store too much information for their excellent. Data management has the power to improve efficiency, gain competitive advantages, and save time and money. But what’s the ROI of data management? Does it pay off?
What are the key metrics that data application managers should be measuring? What should they consider valuable even if they don’t count them? How do we link the ROI of a data application back to business results? The answers to these questions depend on the value you intend to create with your organization’s data.
There are two key drivers of risk and cost related to structured data compliance: failure to comply (through lack of preparation or poorly managed execution) and the ongoing operational costs associated with the technology, governance, and human resources required to maintain a compliant solution.
For many people, it’s easy to be blinded by the promise of big data. Big data is big news that will eventually bring value, so why question its potential ROI? Throwing a ton of money at data and hoping for the best might not be the best approach. To make intelligent decisions about how much to invest in big data and figure out when you can see ROI, you need to think holistically from end to end and understand what every piece of your big data puzzle can do for your organization.
I know what you’re thinking. You already manage your data, so why should you care about its ROI?
There are so many reasons to implement a Data Management Platform. Thanks to the increased availability of data, with great platforms growing in popularity, businesses can now focus on going global. 82% of companies plan to expand their overseas operations next year. This may seem daunting, but thanks to modern solutions, businesses that are still looking to grow internationally have the opportunity to succeed in the global markets.
In today’s business climate, doing more with less is no longer a goal but a necessity for survival. In addition, this time of social distancing and remote working environments is causing us to rethink how we collaborate and obtain the same level of productivity once experienced in a corporate office.
These days, the most successful businesses are built around the idea of “having less but doing more.” We quickly realize that to be successful, we must be innovative with our resources and data management strategies. This will not only allow us to work smarter but also feel more fulfilled in our careers.
A good Data Management ROI strategy can help identify cost reduction and operational improvement opportunities associated with how data is managed and used within an organization.
In every industry, there is always a concept of benchmarking, which involves the comparison of intrinsic data to determine the competitive status of a business entity in the market. Data management ROI summarizes the opportunities for cost reduction and operational improvement by analyzing the current data processing and storage environment.
Identifying and presenting the ‘opportunity cost’ of inefficient data management can help organizations justify investment in improved efficiency. Identifying opportunities for cost reduction requires an understanding of data creation, usage, storage, processing, and destruction processes.
The intersection of data and cost management is a Venn diagram. If you’re like me, the prospect of saving money coupled with achieving other business goals is always an attractive proposition. But let’s face it, most cost reduction initiatives are implemented to attain real dollars in savings. While these efforts are essential for any company’s bottom line, the business benefits are not always obvious. However, there are ways cost reduction initiatives can be more likely to pay off in clear business value.
The value of data has increased significantly over the past few years, both due to the ability to more efficiently and cost-effectively consume data from an increasing number of sources and the increase in data quality. Organizations can use this increased value of their data to make improvements similar in scope to what Henry Ford did for manufacturing when he froze prices on his Model T. The first step to achieving savings from better management of your data is understanding how you produce and consume data today and how much it costs.
Businesses are constantly seeking ways to reduce costs while improving business processes. There has never been a better time to identify de-duplication opportunities within a company’s data. The ability to identify duplicate data in various applications can be used for cost reduction and operational improvement. The return on investment (ROI) for identifying and eliminating exact data can be substantial.
Data is like a new employee you’ve hired. You expect the work it will do and how much value it will bring to your organization. You also have expectations about how much it costs to hire that employee and all the things your company will invest in it. It’s critical that the investment with data management technology yields the proper return on investment (ROI)—or, more accurately, positive savings. But organizations may overlook critical factors for cost reduction and operational improvement in their rush to focus on technology-driven decision making.
The potential financial impact of data management on your organization can be incredible. Data management can help you achieve dramatic cost reductions and operational excellence while supporting business innovation, risk reduction, and revenue growth. But many organizations are struggling to realize this potential, with their investment in data management yielding only modest or even negative returns. So how do you get the potential for financial return?
Regulatory concerns previously drove enhancements to data management, but eight out of 10 banks believe better data management could benefit their business and boost profitability, according to a Risk.net survey sponsored by Oracle.
Articulating the business case The survey results show that banks essentially recognize the business case for improving data management. An overwhelming 83.6% of respondents agreed that improving data management could help to boost profitability and grow the business.
While data might historically have been seen as a burden, it is becoming clear that, by increasing the granularity and accuracy of data across the organization, banks will have greater trust in that data and should be able to make business decisions with more confidence.
But that is not the juicy part. The most exciting news is that AI Surge’s Banking Dashboards enable organizations to generate reports that provide valuable insights that, in turn, allow them to provide the most value to their customers.