Understanding Data Management and Its Importance in Business

Data management means collecting, storing, organising, and using your data correctly. It allows you to keep your data clean and easy to find. Also, such professional management promotes data safety and privacy, which minimizes the chances of breaches or leaks. 

Nowadays, data is vital for every business. According to a study by Harvard Business Review, companies that use data-driven decision-making are 5% more productive and 6% more profitable than their competitors. That’s largely because data helps business owners like you to understand:

• How is your business doing?
• What do your customers want?
• In which areas can you scale operations?

But as your business grows, the volume of data you collect increases significantly. This becomes hard to manage for most organisations. That’s where data management comes in. It allows you to keep all information in one place so that you or your employees can access it easily when required.

So, want to save time by keeping your data organised? Wondering how can you use data to make better business decisions? In this article, let’s understand everything you must know about data management in 2025.

What is Data Management​?

Businesses today use data from many sources (like websites, social media, payments, and customer service). Data management is the way your business handles this information. It covers how the data is:

• Collected
• Stored
• Organised
• Used

The ultimate goal of data management is to make sure the data is correct, easy to find, and protected. Recently, a study by Deloitte found that 7 out of 10 business leaders believe that analysing data is highly important for their business.

They see data analysis as a key part of:

• Planning Strategies: Using data to decide the direction of the business.
• Improving How the Business Runs: Finding better ways to use time, money, and resources.
• Creating Better Experiences for Customers: Understanding what customers like or don’t like, and making changes based on that.

Data Management vs. Data Governance

For most business owners, these two terms sound the same. However, both are different and cover different aspects:

Please note that both these processes are important. Together, they help a business keep its information clean and safe.

What Are the Main Parts of Data Management?

Below are some major parts of data management:

What are the Benefits of Data Management?

Recent studies show that the big data analytics market in India is expected to grow aggressively at the rate of 26% p.a. from 2019 to 2025. By the end of 2025, it is expected to be worth USD 16 billion.

This clearly shows that more and more Indian businesses are now using data analytics to grow their business and to go digital. But why? Below are some major advantages of data management:

1. Better Decision-Making

Proper data management allows you to analyse:

• Customer preferences
• Market trends
• Problem areas in your work process (operational inefficiencies)

Such an analysis offers you valuable insights. By acting upon them, you can stay strong and compete in today’s cut-throat competition. 

2. Following Government Rules

In India, there are new rules about how businesses must handle personal data, such as:

• The Personal Data Protection Bill 
• SEBI’s Cloud Service Adoption Framework

If you do not follow these laws, your business can face fines or legal issues. Data management ensures that you follow these rules and remain compliant.

3. Adapting to Digital India

India is going digital. Programs like Digital India have encouraged more online businesses. This means more data is being created every day! Now, as a business owner, you can use this data to grow your business.

For example, by using tools like big data or artificial intelligence, you can understand your customers better or improve your services. 

Sectors like telecom and online shopping are already doing this. Thus, data management lets you use digital tools and stay updated with the market.

4. Improving Daily Operations

Data management removes double work. A recent study by McKinsey & Company found that smart data management allows businesses to:

• Complete tasks and get quick results, sometimes up to 90% faster than before.
• Cut down their data-related costs by as much as 30% by using better tools and systems.

This is highly important for businesses like manufacturing or delivery services, where time and cost matter. For example, 

• Say you installed a new tool to manage inventory data properly.
• Now, you can avoid overstocking or shortages. 
• This keeps your business running without delays.

5. Solving Local Problems

Currently, India faces unique challenges in terms of:

• Data quality
• Legacy systems
• Infrastructure gaps

Also, nowadays, many organisations are transitioning from manual to digital systems. These factors further increase the importance of data management. It allows business owners like you to overcome issues like:

• Incomplete datasets
• Inconsistent formats
• Incompatible systems

Through data management, you can keep your data clean, complete, and ready to use. It also helps when combining old data with new systems. For example, say you are transitioning to advanced technology. Now, data management ensures that nothing is lost or recorded incorrectly.

What are Some Common Data Management Issues?

To gain the most from data management, you, as a business owner, must compete with these challenges:

1. Data Complexity and Integration

Around 30% of Indian businesses say that handling complex data is a major problem. They often struggle to bring together data from different sources, like:

• Websites
• Software
• Customer records

They also find it hard to keep systems working in sync. When the data is incomplete or doesn’t match across departments, it causes mistakes, confusion, and waste of resources. This makes it hard for business owners to make clear decisions based on reliable information.

2. Regulatory Compliance

India has strict rules for data protection, like:

• The BIS 17428 standards 
• The Personal Data Protection Bill

As a business owner, you must follow these rules, particularly when data is stored in other countries or used across regions. For companies that don’t follow the rules, the risk includes:

• Legal action 
• Damage to their reputation

3. Data Security Concerns

Nowadays, many Indian Chief Information Officers (CIOs) are worried about data security. Some common problems they tackle daily are:

• Cyberattacks
• Data theft
• People accessing information without permission

Usually, a data breach can cause financial loss and harm the business’s name. 

4. Transitioning to Digital Systems

Many Indian businesses are moving from manual systems (like paper files or spreadsheets) to digital systems. But this shift brings problems! Here, some common data management issues are:

• Finding duplicate records
• Fixing incomplete data
• Changing old software so it works with new tools

If this process is not managed properly, it can take a lot of time and money. It may also slow down daily business work. This is a common issue for small businesses trying to modernise.

5. Infrastructure Limitations

Proper data management requires adequate infrastructure. It leads to high costs for:

• Data storage
• Slow data access
• Running big data software

Such limited infrastructure affects the ability to analyse large datasets in real time. It also reduces operational efficiency and makes it harder to fully use tools like big data analytics.

6. Data Quality Issues

Indian businesses often deal with low-quality data. Generally, this includes:

• Incorrect or incomplete data
• Bad labelling
• Poor data handling rules

When you use such poor-quality data, the results from the analysis can be wrong. This leads to:

• Poor decisions
• Missed opportunities
• Loss of customers

Best Practices for Data Management

To make data work for your business, here are some tips:

• Keep all your data in one place.
• Use simple software to manage your data (like Excel, Google Sheets, or small business tools).
• Check your data often to make sure it’s correct.
• Make backups so you don’t lose anything.
• Set rules for who can see or change the data.

Alternatively, you can outsource data management to leading agencies like Atidiv. We at Atidiv offer a range of specialised data management services. Find the complete list here.

Struggling with Data Management? Let Atidiv Handle the Complexity for You!

Nowadays, most business owners are migrating to proper data management. This allows them to:

• Make better decisions
• Improve customer service
• Develop smarter strategies
• Stay compliant with government laws

However, while doing so, they also face many challenges like poor data quality, lack of trained staff, and high infrastructure costs. To overcome these, companies must follow best practices or get help from experts.

Atidiv is a trusted partner for businesses looking to manage their data professionally. We offer:

• Data Engineering services to unify and organise data from many sources. This ensures the data is correct, easy to use, and ready for business needs.
• Custom Data Warehousing and build customised platforms based on your processes and product structure.
• Data Analytics and Visualization to design powerful dashboards in tools like Sigma and Looker. This lets you turn raw data into useful insights.

So, want to gain the most from your business data? Let’s talk!

FAQs On Data Management 

1. Why is my business data so disorganised, and how can I resolve it?

As a business owner, you must be collecting data from different sources (like sales, websites, or spreadsheets). If you don’t properly manage data, it can remain disorganised.

To resolve this, you can start using simple tools (like spreadsheets) to store all your data in one place. Also, try to organise it into clear formats that are easy to read and use.

2. How can I keep my customer data safe from hackers or misuse?

Firstly, begin internally, by setting clear rules about who can access your data. Next, try to use

• Secure passwords
• Cloud storage with privacy settings
• Regular backups

You can also work with professionals like Atidiv. We can ensure your data is protected and safe from threats or leaks.

3. How does better data help my business grow?

When your data is clean and organised, it gives you valuable insights like:

• What do your customers like?
• What are the latest market trends?
• What are the problem areas in your customer service?
• What are the new emerging business opportunities?

When you have answers to these questions, you start making smart business decisions. This leads to more profits and business growth.