Digitization, regulation, industry 4.0, share prices, weather prediction, Internet of Things, compliance, IT security or FinTech – no matter which topic you draw, without clean data or information management you will not be able to master any of the above-mentioned challenges.
Information is the currency that counts today and will count in the future – and this is not just in the monetary sense. Those who do not know how to deal with the four V’s of data management will lose the race against the competitors, the cyber criminals and the supervisory authorities.
Regardless of what information is required, it is important to ensure that the appropriate processes, systems and infrastructures are available in order to process large amounts of data. It does not matter whether one accesses third-party infrastructures (e.g., cloud services), or has their own high performance or storage systems in use – depending on the application area. A private individual certainly has other requirements here than the operator of real-time trading platforms in high-frequency trading.
The speed in data processing plays an essential role. You need to be able to provide the right information at the right time, at the right place, to the right person. These are central prerequisites for being perceived as a FinTech or an InsurTech. This is not just about re-establishing processes or redefining business models, but essentially about developing and offering tailor-made models for industries and people – in real-time or, depending on the application, at least within a few moments.
The King’s discipline in digitization. Where does the information come from? Who is the owner of this information? What kind of information is it? How can I refine, evaluate, and value the data? Which data are in my inventory, which are publicly available, and what other sources are available to complete the database to be analyzed and to raise the significance and resilience of the evaluations to the highest level? The challenges here are enormous and, in many parts, it is not yet clear where the journey is going, since the analysis and evaluation of structured, half-structured and unstructured data is still a young science in many industries. Sometimes ONLY protection of data privacy or the regulation authority stands in the way.
If you want to be able to make the right decisions based on the available information, you must trust that this information is correct and true. In order to ensure this requirement, the information – the same applies to the programs and systems on which this information is processed – must meet the following criteria:
- The information has to have integrity, which means, it must be reliable and not corrupted.
- The information must be available, which means that the data, programs and systems must be functional and available.
- The data must be confidential, which means that unauthorized persons must be denied access to the data, programs and systems.
- There must be no doubt about the authenticity of the data. The origin, the author and the content must be determinable without a doubt.
It can be summarized that the ultimate goal is the retention or production of “digital sovereignty“, that is, there is no uncertainty about the existing data, systems and applications.
Mastering the four V’s is just the first step towards digitization.
Since there will be a hard cut in the rarest cases, the further challenges of digitization are the integration of these into the existing business model, ensuring ROI (Return of Investment), but in this case it not only about the financial amortization, but also the operational outcome and ensuring data quality, data integrity, data security and data protection.
At the end of my review, this means not only “Data is King”, but also:
Data remains King
This article can also be read in German at the following link: http://www.cashkurs.com/kategorie/hintergrundinfos/beitrag/data-is-king/