Data management and data processing are two processes that occur in many industries, but each has a very different purpose. Professionals who deal with this on a daily basis often use confusing terminology, making it sometimes difficult to understand and keep it all apart.
When you understand the purpose of different processes, the distinction between data management and data processing immediately becomes much clearer. Let's take a look at how these two concepts work in practice.
Data management involves collecting, preparing and storing data. We can describe these steps as data acquisition, data cleaning, data preservation and data documentation. In the data acquisition phase, you collect data from various sources. For effective data management, it is essential to know where the data came from.
Data cleansing is the process of removing or adjusting imperfect or incomplete data. This can help you reduce errors in the data and make it easier to use.
Data retention, with the linked data retention, refers to how long you keep data. Retention periods vary depending on the industry and type of data you collect.
Data documentation refers to creating metadata about the data. Metadata helps make the data easier to understand and use more effectively.
Data processing is the conversion of raw data into useful information. Data must be processed and analyzed to be useful and can be reused in something more meaningful.
This could include calculating sales figures, analyzing customer data or understanding energy consumption. Although data management is a part of data processing, data management is not processing.
Data processing can also be referred to as "data analytics," which is a process that extracts useful information from data. This is often done using computer systems and software. Data analytics is, or can and should be, an important part at any organization. It enables companies to understand their customers and sales, improve marketing strategies and product development, and make better business decisions.
Another term sometimes confused with data management is data warehousing. Data warehousing is a form of data management. Data warehousing is the process of collecting, cleaning, organizing and storing large amounts of information from multiple sources to make it easily accessible when needed. This data can come from a single database or from multiple sources. Data warehousing is often used to store information about customers, products and equipment.
Data cleansing and data enrichment are important parts of data management. Data cleansing and data enrichment are important parts of data management. Data cleansing is the process of identifying and removing errors or incomplete information from data. Data enrichment is the process of adding missing information to data. Both processes are important parts of data management.
Data management and data processing are important parts of many industries. Data management involves the collection, preparation and storage of data. Data processing is the conversion of raw data into usable information. The two terms are often confused with each other because of their similar names. However, their purpose is quite different. It is important that you understand the difference because this will help you better understand the work of data managers and data processors.