Modern enterprises treat data as an asset and invest in information management programs to handle it effectively. They approach EIM consulting experts to prepare an effective strategy which suits their organization and helps meet their specified objectives. However, the executive leadership wants to compare the cost of information management with the expected value it will bring to the company. This is not an incorrect approach. After all the main objective of running a business is to earn profits and any initiative no matter how potentially productive, will be considered ineffectual if the expenses outnumber the expected returns. Businesses must know about the factors which affect the cost of running the initiative. This will help them in creating a purposeful plan optimized for generating more revenue.
1. Storage Infrastructure Of The Program
Creating the infrastructure for storing the data assets and relaying them to different sections requires significant investment. Corporations need to store various elements in their databases. The bigger an enterprise, the more complex and large will be its database. Add to this the necessity of managing big data to generate valuable outputs that help identify business trends and patterns.the basic cost of running such a program can easily go up to millions of dollars every year. It is essential that organizations understand that not all databases will possess equal value. All those databases which do not provide any direct benefit to the business operations must be removed. This will also reduce the number of skilled personnel and resources needed to handle such assets. Identifying database according to their direct business value will be helpful in controlling the costs of the program.
2. Confusion In Data Interpretation
Another factor that can increase the expenditure on data management is confusion in interpreting data elements. It is common for the different departments to draw different inferences from the same information asset. This leads to the duplication of the elements across the organization besides creating confusion in business communication. Governance is the solution to such issues. Creating standardized definitions of all the assets and directing all stakeholders to refer to the specified interpretations will help in eliminating duplication. However, in some situations, it becomes necessary to preserve the different versions of the same item. In such instances, confusion can be avoided by using semantic and structural operatic methods to support varied business definitions. The main objective is to eliminate misunderstanding altogether so that the users make accurate assumptions. Correct analyses will enable accurate decision making which will be fruitful for the organization and boost its profits. The operational budget of running an information management initiative is huge and even a minimal reduction can lead to the savings of millions of dollars.
3. Adoption Of New Technology
Every business wants to use the best technological solutions to generate maximum value from its EIM program. However, adopting new technology does not automatically lead to better efficiency. In fact, it can lead to the opposite situation and create serious interoperability issues between the different systems. Data management is a constant process and organizations discover new elements as well as new challenges regularly. Many times, they try to address an issue by installing a solution specifically aimed at the problem. This can create adaptability issues if the new technology tool is not compatible with the other operational solutions. Choosing specialized solutions also force companies to invest in more tools to fulfill different requirements. This leads to a fragmented and unorganized management approach. Enterprises must opt for a foundational program which is optimized for handling potential future issues. High-grade enterprise level solutions are expensive and installing specialized tools can escalate the costs. Selecting few but efficient tools with wider foundational footprint will always be a cost-effective measure.
4. Digital Transformation Of Data Assets
Transformation of data elements is an integral part of any management initiative. However, it is imperative that businesses exactly know what needs to be changed. They must understand the current situation and what the program is trying to achieve. This makes it essential to know where to begin the process. Enterprises must provide a clear view of the entire digital environment to all the users involved in the transformation process. In case, this kind of access is not provided, all programs will first try to locate the elements and fill the gaps before executing a task. This can increase the time required to manage the assets and negatively affect the productivity of the program by increasing the expenses.
Information management requires considerable financial investment but it also guarantees increased returns if the plan is executed efficiently. Corporations must engage data management services to create an effective plan which is optimized for reduced costs. Only then can they hope to manage their assets coherently and boost their profits.