Data management is the process of creating and enforcing policies, procedures and procedures to manage data throughout its entire lifecycle. It makes sure that data is available and useful, which facilitates the compliance of regulators and makes informed decisions and ultimately creates companies with a competitive advantage.

The importance of effective data management has grown significantly as organizations automate their business processes, leverage software-as-a-service (SaaS) applications and deploy data warehouses, among other initiatives. This results in a proliferation of data that must be consolidated, and then sent to business analytics (BI) systems, enterprise resource management (ERP) platforms, and the Internet of Things (IoT), sensors, and machine learning, and generative artificial intelligence (AI) tools, to provide advanced insights.

Without a clearly defined strategy for managing data, businesses can end up with data silos that are incompatible and inconsistent data sets that hinder the ability to operate business intelligence and analytics applications. A poor data management strategy can erode employee and customer trust.

To overcome these challenges it is crucial that companies develop a data management plan (DMP) that includes the people and processes required to manage all types of data. For example an DMP can help researchers determine the naming conventions that they should employ to structure data sets for long-term storage and for easy access. It could also include data workflows which define the steps to take for cleansing, validating and integrating raw data sets as well as refined data sets to ensure that they are suitable for analysis.

For organizations that collect consumer data A DMP can help ensure compliance with privacy laws around the world such as the European Union’s General Data Protection Regulation or state-level regulations such as California’s Consumer Privacy Act. It also can guide the formulation of policies and procedures for addressing data security threats and audits.

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