What Is Data Management | 5 mins read

What is Data Management? 7 Types to Know

what is data management 7 types to know
Lauren Christiansen

By Lauren Christiansen

7 Types of Data Management

What is data management? Data management is the process of generating and keeping a system for collecting, storing, and aggregating management data and organization-based data that is critical to the workplace. It is similar to the spine on a backbone in that it fastens to each aspect of the information supply chain. The majority of organizations use a data management plan and data management software to ensure the most effective data is collected to increase business intelligence.

Businesses derive a lot of benefits by enforcing proper data security measures and policies/procedures. Because big data is so extensive, companies must establish a data architecture and set of data management best practices to handle all of their information. A good management strategy uses a set of management tools, machine learning, and data analytics to gain valuable insights that optimize decision-making. Here are the 7 types of data management

  • 83% of companies see a data strategy as an integral part of their business strategy
  • Keeping data current costs businesses more than $600 billion per year
  • Poor data quality costs the U.S. economy $3.1 trillion per year
  • 98% of Fortune 500 organizations use big data to attract new customers

1. Data Management Plan - Master Data Management

Master data management MDM ensures a company uses only quality data to base decisions on. Think about people who base their decisions on misleading information and how poor those outcomes tend to be. In the business world, each choice is made to increase profits and generate new customers. Without a data integration strategy in place, businesses won't make data-driven choices.

In a master data management plan, an organization needs to collect all raw data from different data sources and then place them in one single data warehouse. The information will then need to be each data management platform or software solution for different business units. A good data management master plan helps make this happen.

2. Data Management Process Data Stewardship

Think of data stewardship as a police officer. While not directly in control of generating data storage and quality management policies, the steward monitors all data management systems. It monitors the quality of business data collected, how it is gathered, and any data storage policies. A steward helps to mitigate any problems before they become a bigger concern and cause a breakdown or data loss.

3. Management Process Data Quality Management

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A data quality manager acts as an assistant to the steward in business operations. It isn't in complete control of monitoring all of the processes, but it does portions of the job to make the process faster. A data quality manager sorts through any collected data to see if there are any concerns such as duplicate information or other inconsistencies. Data quality management assists the organization-defined enterprise data management network.

4. Management Solutions Data Security

Enforcing data security and data privacy measures are the most important requirements for an organization. Valuable customer data and other sensitive information is gathered and stored each day. If customers don't feel confident in data security measures, they will be less likely to do business with the company. Furthermore, theft or hacks can damage a company's reputation, and even cause litigation. Security professionals use encryption, eliminate hacks, and prevent deletions or other managed data accidents.

  • 92% of malware is delivered by email
  • 90% of financial institutions report having malware attacks each year
  • 98% of cybersecurity attacks rely on social engineering
  • The average cost of data breaches worldwide is $3.86 million

5. Management Best Policies Data Governance

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Data governance is similar to the United States constitution. It establishes all of the laws for management platforms' way of handling all of the warehouse data and management software. It creates the procedures for intaking, moving, and securing all of the company's information. Data governors supervise all of the various stewards and other teams to optimize the entire data management process. A set of rules and guidelines prevents problems and ensures workers view the most accurate information when they perform their jobs.

6. Data Management Solutions Big Data Management

Big data is the general term that defines the collection, analysis, data modeling, and use of large quantities of company information. Overseeing this entire process is a big responsibility. The gathered information is used to improve business decisions and achieve operational effectiveness. If one part goes wrong, the entire system can collapse. Big data management centers on intaking raw data, data preparation, data integration, and maintaining a quality network. Good data and valuable data sets are used by various areas of the company to make data-driven choices that help to streamline operations.

7. Effective Data Management - Data Warehouses

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Data is the foundation that supports a growing company. A large amount of information gathered presents a few difficulties. Primarily, how does a business handle all of this information and keep it safe? Data warehouse solutions create and supervise the cloud-based architecture and other data management tools to ensure it is equipped to handle all of the information collected. Data analysis and business analytics are then used to extract good insights that increase profits, grow the customer base, and pinpoint new opportunities.

  • A data stack is a collection point for different types of information from various sources
  • A well-designed stack provides different types of processing programs for extracting valuable information and putting it into data visualizations
  • A database is related to one information center whereas a data warehouse stores information from many applications

Data Management Platforms - Key Takeaways

In conclusion, here is what to know about data management -

  • Master data management employs all of the information collected is high quality. Data stewardship is in charge of overseeing all of the various data management systems and networks.
  • Data quality management helps the steward by making the flow of information through data management systems faster. Data security policies ensure sensitive information is safe from hacks or theft.
  • Data governance establishes all of the laws for the way management solutions handle information. They supervise all of the stewards and other teams to improve the entire process.
  • Big data management oversees the entire collection, analysis, modeling, and data use so business owners can make better choices.
  • Data warehouses handle all of the information by providing the correct tools. This information is then extracted by various business units to optimize problem-solving.