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Data centralization, the challenge it poses and its benefits

Currently, one of the challenges for companies is the centralization of data, mainly because:

  • The cloud has technologically promoted the centralization of data.
  • Data can, being scattered, be a double-edged sword.

Digitization has consequences, one of the most important is that this data can be used in different departments without special protocols or the need to be physically shared, all thanks to the centralization of data.

Gone is the time when the different teams involved in a project needed to exchange documents and physical data media. Today, the trend is that everyone can share data with everyone, even if they have different permissions.

Scattered data, a problem

The temptation to apply data and the newest techniques to work with them to solve specific problems in a company. Certain areas could be markedly improved based on objective evidence.

Each department, however, when each department has its own data process and techniques, we face several problems:

  • While one area may greatly increase its growth, the others may not keep pace. An example of this is knowing how to sell without knowing how to produce.
  • As all the data is in one place, this makes it more vulnerable to cyber attacks and data protection problems. Without a strategy that involves all departments, a failure at any one site could jeopardize the entire company.
  • Incentive problems can also occur. Departments may have data that is only understood within their environment. This can mean that information necessary for other departments is missing, but errors made by the human part of the team appear.
  • All this can generate a lack of coordination, inefficiencies, since nothing guarantees that the processes are not redundant.
  • Loss of perspective, since focusing on specific areas we may not take into account the effect of isolated decisions on the company as a whole.

What does data centralization entail?

With centralization, what is intended is that the users of the company have the same reference site to which they can go. It can normally be done through cloud computing. For example, through spñicopmes that allow the management of the data of different departments and that, in addition, are modular to be able to add the functionalities that are needed.

Information management is carried out throughout the company and in all its phases, from analysis to system control, through design, implementation and maintenance.

We can also opt for a certain degree of customization in each phase, variable depending on the needs and the cost that we can assume.

Why opt for data centralization?

Data centralization brings many advantages:

  • Strengthens the organization. The data also illuminates how every change in the environment can affect all departments.
  • Greater transparency. Information is more accessible to the entire company.
  • Less dependence on physical places. The information does not have to travel from one place to another, but is available in all departments at once. If it is also in the cloud, it can be accessed from anywhere with the internet.
  • More collaboration. The formats in which the information is handled tend to be more inclusive, so that it is more accessible by workers outside the department in which that specific data is usually found.

How is the data centralized?

It usually has several stops:

  • Data digitization. When it is difficult to centralize data on paper because when someone needs it, they would have to request a copy. Long response times and methods to guarantee the updating of data carriers
  • Analysis. It is necessary to know the objectives to be achieved, the tools to be used, the access protocols, the security measures to be implemented, etc.
  • Design. All this analysis must be transferred to a project to manage the data.
  • Implantation. It is the start-up stage of the processes.
  • Maintenance. Work oriented to ensure that the data, its protocols and the equipment that will use them are in the right conditions.
  • Control. It is necessary to study if the forecast is fulfilled and propose measures in case of deviations.

Centralizing data may not always be easy, but it is a challenge that strengthens the company and puts it in a position to manage itself in a much more coordinated and efficient way.

If you want to read more, you can here.

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