Data analytics is growing more important across all industries, as companies look to analyzing information about customers, competitors and the business environment to gain an advantage in a competitive marketplace.
Currently, 65% of senior managers1 say that management decisions are increasingly based on hard data. The role of the database therefore becomes a strategic one, and businesses look to make informed decisions and improve operations and outlook. However, database management isn’t easy – and the changes that are occurring in the business environment are making those challenges even greater.
Challenges to database management include:
Skilled Labor Force
In a recent survey2, only 44% of companies have internal IT employees dedicated to data management or data analytics: meaning that the people that are in charge of critical data have their attention divided with other duties, or their expertise may lie in technical areas outside of data management.
This is the result of a shortage of technical talent – a labor shortage that drives the resources required to find and hire IT employees, as well as their salaries, higher and higher. Even with recent changes to the labor market, specifically, rising unemployment rates, unemployment in IT professions has actually declined, making it more difficult to find and hire skilled and experienced technical employees for database management.
The volume of data created worldwide3 is expected to grow from 2 zetabytes in 2010 to more than 175 zetabytes by 2025. Without a scalable solution and the expertise to manage it, this exponential increase affects operational databases by slowing down the speed of transactions, and by increasing the complexity of database administration.
To overcome these problems, companies must have a strong data management team with a flexible data management strategy in place: one that minimizes manual tasks, continually manages data security and includes a data archiving strategy.
Data breaches are increasing – both in number and in severity. From 2018-2019, the number of reported breaches4 increased by 54%, and the number of records that were exposed increased by 52%. And while databases often contain the bulk of an organization’s sensitive information, a recent study5 found that more than twice the budget is devoted to network security (40%) over database security (19%).
Without budgetary resources, and with qualified employees difficult to find, managing database security becomes even more difficult.
Regulatory compliance requirements change based on the industry, types of data, and countries in which an organization operates. Globalization offers many opportunities to companies to reach new markets, but complicates compliance requirements as well. Keeping track of requirements in a fast-changing regulatory environment – and ensuring that your company’s database meets them – is a critical task, and a challenging one.
Data Integration & Data Quality
The volume of data that a company gathers isn’t the only critical factor in database management – there is also the fact that data is generated and gathered from a variety of sources, in a variety of formats. Integrating data from different formats so that it can be used intelligently is important to advanced analytics.
Data quality is essential to maintaining a useable, functional database. Employees can spend up to 50% of time on mundane data quality tasks, but these tasks have value: on average, it costs $1 to prevent a duplicate, $10 to correct one, but $100 to store a duplicate record if it remains in the database6.
As data analytics are increasingly important to a company’s decision-making process, driving operations and strategy, database management is critical to an organization’s success. However, the challenges of finding and retaining a qualified labor force, staying compliant in a rapidly changing global regulatory environment, and keeping up with data volume, quality and security all require expert management and constant optimization of the database: both data and functions.
This confluence of factors has led many companies to consider Database-as-a-Service (DBaaS): the outsourcing of database management to a third-party provider. DBaaS provides a company many advantages: ensuring that the database is optimized, scalable, and running smoothly while freeing up internal resources to manage higher-level objectives.
A DBaaS Solution can manage a variety of database functions, including: online transactional processing, data integration, data quality, data analytics, and data security. Moreover, a solution with a database management platform allows high-level monitoring of database activity (without the need for mundane task management) as well as automation capabilities, to improve functionality and operational efficiency.
Is your database managed at its optimal levels? If taking care of critical databases is becoming a burden, distracting your IT team from higher-level activities, consider engaging a DBaaS partner. Velocity Technology Services offers DBaaS, with the proprietary VCAMP platform to ensure high performance, reliable access, rich features, in a cost-effective solution.
Contact Velocity today, and learn more about how DBaaS can help improve data-driven decision-making at your organization.