Data runs companies. It is a simple fact that no one can argue against nowadays. For manufacturing and distribution companies especially, leveraging data is essential to the success of operations. Everything from examining trends in labor time and production, to minimising safety and business risks throughout the supply chain, to forecasting new openings in the market - nearly every section of operations relies on the insights of data.
As such, making sure that data is secure, consistent, accurate, properly managed, and free of gaps is extremely important. One of the largest problems, however, that separates successful companies from the unsuccessful is data disparity. Thus, in this blog, we will discuss the causes and challenges of data gaps within your company, as well as provide you with a simple way you can overcome this hurdle.
According to Sarah Giest of the Institute of Public Administration at Leiden University, data disparity is “data for particular elements or social groups that are knowingly or unknowingly missing when policy is made on the basis of large datasets”. Data disparity can present itself in a multitude of ways, some of which include inconsistent data, differing data terminology, and divergent data systems.
So what exactly causes data disparity to occur, and what are the effects of this on your company? One of the most common reasons for data disparity is divisions between the front and back office. These divisions often stem between the business and operations side of the business. The business side typically involves building and maintaining client relationships, gaining revenue, and overseeing the output of products and services.
On the other hand, the operations side oversees client transactions, workflow, and processing. The term front office encompasses the business side of your company, while the term back office entails the operations side. In many companies, the front and back office are often managed by separate computer applications and possess isolated information silos. Although the two offices have different interests and responsibilities, by managing them independently, barriers are created. These barriers can adversely affect your company in several ways, such as:
- Reduced data access and transparency
- Decreased supply chain efficiency
- Decreased company proactivity
- Decreased ROI
- Decreased data integrity
One of the best solutions to avoiding these issues is to install a centralised database for your company. A centralised database is a database where data accumulated from all facets of your company are stored, managed, and accessed. As opposed to a distributed database that stores and maintains data on multiple computers, a centralised database allows your business to increase productivity through features like:
Improved data security:
Simply put, keeping track of one centralised repository of data is much easier and more practical than keeping track of several. While distributed databases have multiple points of access from which unintended visitors can enter, centralised databases have only one that needs to be secured.
Reduced training costs:
Having more than one unique database requires employees to know how to use them. When only one database is present, however, employees would only need to know how to use that one, thus allowing for lower training costs and faster employee assimilation rates.
Simplified reporting:
When all of your business's data can be accessed from a single entry point, writing status reports becomes a much simpler, more efficient task. Not to mention, because the need to duplicate your data across platforms will become obsolete, your data will automatically become less prone to errors and storage capacity will increase.
Data automation capabilities:
As the name suggests, data automation utilises preprogrammed workflows to transform monotonous manual tasks into streamlined processes. By automating repeatable tasks, business operations will be completed in a more consistent and reliable fashion, time and money will be saved, and key metrics of your choice can be recorded and reported to you.
To conclude, data disparity is a serious problem that can harm the livelihood of your business if left unresolved. Making the switch from a distributed database to a centralised one may seem like a large leap for some, but the benefits listed above are surely worth the endeavor. If you are interested in learning more about the importance of preventing data disparity, take a look at our blog on achieving governed data democratisation, which goes into the specifics of how increased data access can benefit your company.
About the author: Mark Roychowdhury is a Copywriter Intern at ei² niche consulting for #data #insights #performance www.eisquare.co.uk
Editor: Aleksandra Pavlovic