With more and more companies implementing ERP and CRM solutions, there is a wide increase in the amount of data that gets stored about the customers, partners and suppliers. The phenomena of exponential multiplication of data that gets stored is termed as “Data Explosion”. Continuous inflow of real-time data from various processes, machinery and manual inputs keep flooding the storage servers every second.
Especially when the company has a presence across geographical locations and has a wide scale of operations, then the amount of data that gets captured is huge. Though, a large quantity of data helps the business intelligence systems in a better manner, it also has a direct effect on the hardware costs.
Organizations can tackle data explosion by continuous adoption of technology as technological improvements have changed the way data is stored and scaled database capabilities. In addition, a clear data strategy is essential to forecast hardware requirements and helps to have a unified organization wide plan for use of corporate data. The data strategy should be based on clear understanding of the present level of data storage and quantifiable metrics that define future requirements. Major corporations have gone a step further to appoint a Chief Data Officer (CDO) to manage and strategize enterprise-wide data storage, data processing and data mining. The CDO typically supports the chief technology officer and the chief executive officer. We will look into the details of data strategy and implementation in further posts.