What are some common problems with data management?

Think of data management like a high-stakes game of chess. Every move counts, and missteps can cost you the match. Struggling with data issues? However, you’re not alone, many struggle with various data management challenges that can hinder their ability to leverage data effectively. This blog explores some of the most common problems in data management and its potential impacts on businesses and offers insights into how organizations can navigate these obstacles.

Common Data Management Problems

Data Quality Issues: Data quality is a major challenge in data management, with issues like inaccuracies, inconsistencies, duplicates, and missing data. Studies reveal that poor data quality costs organizations an average of $15 million annually. Poor data can lead to flawed strategies (bad decisions?), inefficiencies, compromised customer experiences, and business outcomes. Fragmented data management approaches and weak data governance frequently cause poor data quality.

Data Security: As organizations collect and store vast amounts of sensitive data, they become prime targets for cybercriminals. According to the latest reports, data breaches rose 20% between 2022 and 2023, with the global average cost of a data breach in 2023 at $4.4 million, emphasizing the importance of data protection in data management. Common security challenges include unauthorized access to sensitive data, data leaks, internal and external threats, and a lack of proper data security tools like data masking.

Regulatory Compliance Challenges: With the increasing focus on data privacy and protection regulations such as GDPR and CCPA, organizations face significant challenges in ensuring compliance with data governance and regulatory requirements. Non-compliance can result in hefty fines and reputational damage. Over 120 countries have regulations to protect residents’ data privacy and security, with more local laws soon coming into effect.
Data Silos and Fragmentation: Data silos occur when data is stored in isolated systems or departments, making it challenging to access and share information across the organization. It is estimated that 2.5 quintillion bytes of data are created every day. Data fragmentation hinders collaboration and curtailed integration, hampers the ETL process, increases the risk of duplicated efforts, and inhibits data-driven decision-making.
Scalability Issues: Many organizations struggle to scale their data management infrastructure as data volumes grow exponentially. IDC predicts the global data volumes will grow to 175 zettabytes by 2025. This rapid growth presents challenges such as inadequate storage capacity, slow data processing and analytics, difficulty maintaining system performance, and increased data storage and management costs.
Inconsistent Data Governance: Data governance provides a framework for ensuring data quality, security, and compliance. However, many organizations lack robust data governance strategies, leading to inconsistent data definitions and standards, unclear data ownership and responsibilities, difficulty enforcing data policies, and increased risk of regulatory non-compliance.
Data Accessibility and Usability: Limited data visibility and accessibility can hinder decision-making and operational efficiency. Studies reveal companies that effectively leverage data visibility are five times more likely to make faster and better decisions. Ensuring that data is easily accessible to authorized users while maintaining proper security measures is essential for enabling timely and informed decision-making.

How to solve Data Management Problems?

Solving data management problems requires a multifaceted approach that targets various issues like data integrity, security, storage, and accessibility. Here’s a breakdown of key strategies to address common challenges in data management:

Implement Robust Data Governance: Effective data governance ensures that data is well-organized, easily accessible, and properly regulated. A strong data governance solution (SOLIXCloud Enterprise Security and Compliance) assigns responsibility, sets policies, and ensures compliance with data regulations like GDPR or HIPAA.
Strengthen Data Security: Solutions like encryption, data masking, and access control protocols protect sensitive information from unauthorized access. SOLIXCloud Data Masking enhances data security by anonymizing sensitive information, preventing unauthorized access, ensuring compliance with regulations, and protecting against evolving threats.
Decommissioning Legacy Data: Application retirement simplifies data management by cutting complexity and costs. Decommissioning outdated systems streamlines data governance, removes legacy data, and boosts security. Implementing the SOLIXCloud Application Retirement Solution frees up resources, eliminates outdated data, and helps focus on current, relevant data, enhancing accuracy and compliance.
Adopt Scalable Storage Solutions: Cloud and hybrid storage models offer flexibility and capacity without physical infrastructure constraints. Adopting these solutions allows companies to store and retrieve data efficiently as the demand grows.
Regular Data Auditing and Cleaning: Duplicate, incomplete, or outdated records slow down operations and skew insights. Regular auditing, cleaning, and de-duplication help maintain data integrity and prevent dataset bloating. Conducting routine health checks keeps data relevant and ready for analysis.

Bottom Line

While the challenges associated with data management are substantial, they are not insurmountable. By prioritizing data quality, breaking down silos, ensuring compliance and security, and managing data overload effectively, CIOs, CDOs, and other key stakeholders can foster a more efficient and secure approach to managing their valuable data assets.

Learn more: Streamline IT operations and cut costs with our guide to Application Retirement, helping your business transition from legacy systems to modern solutions. Read the full guide now!

About the author

Vishnu Jayan is a tech blogger and Senior Product Marketing Executive at Solix Technology, specializing in enterprise data governance, security, and compliance. He earned his MBA from ICFAI Business School Hyderabad. He creates blogs, articles, ebooks, and other marketing collateral that spotlight the latest trends in data management and privacy compliance. Vishnu has a proven track record of driving leads and traffic to Solix. He is passionate about helping businesses thrive by developing positioning and messaging strategies, conducting market research, and fostering customer engagement. His work supports Solix’s mission to provide innovative software solutions for secure and efficient data management.