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In the majority of industries, companies often use multiple databases and servers for daily operations. Whether it’s sales data or technical product information, data comes from a variety of places. A major challenge that many industries face is siloed data, which can reduce productivity, increase human errors and drastically impact a business’s bottom line.
Data consolidation is the method of combining data in a single place or a single source of truth. It’s an effective way to combat siloed data and provides big benefits such as streamlining data distribution, providing more detailed business insights and reducing company processes as a whole.
Let’s take a closer look at data consolidation.
Misconceptions About Data Consolidation
Common misconceptions about data consolidation are that it’s unnecessary and costly. The reality is that data consolidation can actually help to reduce your company’s overheads. By retrieving data from different sources and combining it together in a single location, you gain in-depth data analysis and accurate business intelligence to make smarter and more lucrative business decisions.
Another misconception is that data consolidation is a time-consuming process and sorting large data sets takes a significant amount of time – that’s where automation comes in.
Automation Can Produce a Single Source of Truth
Through the use of automation, crucial data from all departments can be collected into a single source of truth, eliminating the need to log into multiple networks and run several systems.
Furthermore, the amount of data a company processes is continuously growing, utilizing automation enables you to future proof your networking infrastructure and scale data distribution with one system to provide data to the entire company.
Benefits of Data Consolidation
According to the Vena Industry Benchmark Report, only 35 percent of companies have an automated data consolidation process. Despite the number being so low, there are many untapped benefits of data consolidation that leaders are missing out on to garner data-driven results.
Some of those key benefits are:
- Productivity increase: Improves the communication flow between departments. For example, collecting and combining data from marketing and sales to produce greater insights on customer behavior and trend spotting, alongside reducing incorrectly inputted data.
- Cost reductions: with data consolidation, there’s no need to utilize multiple systems, data can be retrieved from multiple points and outputted to a single source of truth.
- Enhanced security: enabling a centralized data infrastructure helps to reduce data breaches in several servers or locations. Not only can data consolidation mitigate the risk of attacks but it can also allow you to implement a more robust disaster recovery plan.
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