5 data management strategies for surviving an uncertain economy

We’re in for a tough couple of quarters. Or perhaps we’re not. This encapsulates the sentiment from nearly each economist, enterprise analyst, investor, speaking head and armchair advisor over the previous few months. When it involves our macroeconomic outlook, it is dependent upon who you ask.

Make no mistake; there are many regarding indicators to counsel an ailing economy: inflation, widespread layoffs, slashed revenues, devaluations, sluggish funding and risky geopolitics. But whether or not we expertise the eyewall of one other full-blown international recession or simply gusts of regional financial headwinds, enterprises of all sizes and sectors have proactively begun to batten down the hatches.

During these instances of protracted fiscal uncertainty, a query I repeatedly obtain from prospects, potential purchasers, and enterprise leaders whose digital transformation journeys are underway or about to be is, “What should we do about our data strategy?”

I’m glad you requested.

1. Don’t punt the data can down the street

If there’s a single nugget of recommendation you’re taking away, let or not it’s this: as tempting as it might be to pause, delay or defer your data management and bigger digital modernization efforts throughout financial downturns — don’t. 

Digital transformation isn’t a lightweight change you merely flip on and off. Enterprises can’t decelerate; as soon as began, momentum should be maintained. The innovation curve has turn out to be considerably extra exponential, and if prospects don’t give attention to long-term, mission-critical transformations, they may probably discover themselves unable to flee recessions, pandemics and different financial quagmires. 

“This too shall pass” is a favourite maxim of actor Tom Hanks, and it illuminates this very level — financial peaks, plateaus and valleys are cyclical. In April 2020, American Airlines bought and applied our options. Frankly, given the pandemic-related chaos, I used to be stunned. When I referred to as them, their rationale was enlightening: Transformation can’t cease. They acknowledged the necessity to perceive their prospects higher, and even when their enterprise shut down for six months, individuals would fly once more. They wanted to propel long-term funding and get forward of adjusting buyer habits. They merely couldn’t afford to take a seat and wait for the pandemic to go to get began.

2. Empower data democratization

A consequence of downturns is usually expertise loss, both voluntarily or via layoffs. When it involves data management and digital transformation, it will possibly trigger extreme disruption to productiveness and accessibility if conventional gatekeepers like IT or data groups are impacted.

Reduce the burden on IT personnel and decrease your danger by empowering different departments and line-of-business customers to personal the data they continuously want, use or have experience about. This will be simply as a lot a tradition shift as it’s introducing new instruments, however think about integrating extra plug-and-play options, low-code/no-code SaaS and self-service merchandise that may assist simplify data entry and duties for even the least data-literate staff.

It’s clear that is already on the minds of many management groups. In a research Informatica lately commissioned from Wakefield Research, of the 600 chief data officers, chief analytics officers and chief data and analytics officers from the U.S., Europe, and Asia Pacific we surveyed, 46% reported enhancing data-driven tradition and literacy as a 2023 precedence.

3. Prioritize present data expertise

On that be aware, whereas this isn’t essentially data management-specific, I usually inform any chief who will hear: Minimize complexity by maximizing expertise. In a downturn when hiring pauses and freezes, and layoffs might result in abilities shortages or gaps, lean on present personnel and encourage alternatives to upskill and uplevel. 

Undoubtedly, your data groups are pushed by the need to do cutting-edge, mission-critical work. Focus on what meaning, over-communicate, and nurture an organization tradition that present staff are pleased with and potential staff are drawn to. 

4. Trim the fats from the data tech stack

A pure response to financial unpredictability is to tighten belts, maintain the purse strings and usually discover inventive methods to do extra with much less. In immediately’s enterprises, most of us are responsible of tech stack bloat — apps, packages, instruments and software program which have at one time been added to our arsenal to make our jobs simpler, however in truth, could also be gathering digital mud or are too costly to justify.

Now is an opportune time to audit your present data toolset, decide the merchandise that ship essentially the most bang for your buck and graveyard anything. If you aren’t already, look to streamline your suite of options right into a single, unifying, cloud-native platform.

A complete platform ought to incorporate AI and machine studying, which may simplify data management by intelligently automating guide duties and accelerating key tendencies and insights. This can even help within the democratization of data use, assuaging time constraints for tech expertise to give attention to different key tasks or strategic priorities.

5. Double down on data safety and governance

Unfortunately, there appears to be a correlation between elevated nefarious cyber-activity and bleak financial instances. High turnover, inside turmoil and general enterprise instability can create environments rife for social engineering and different assaults.

With breaches now costing enterprises within the thousands and thousands on common, unhealthy actors astutely anticipate that companies may have fewer sources, each capital and other people, to bolster their safety infrastructure and defend their most prized asset — their data. Add within the advanced and ever-growing calls for of data sovereignty legal guidelines and safety/privateness regulatory compliance, and it turns into painfully apparent: If you don’t have a data answer with safety, governance and lineage built-in — get one.

Let’s be clear: A sturdy data technique isn’t a cybersecurity answer, nevertheless it needs to be a part of any firm’s bigger digital safety equipment. In immediately’s hybrid, multi-cloud, cross-jurisdictional world, any data technique value its weight should automate and combine data safety, privateness and governance. Relying on people to make sure all of the t’s are crossed and that i’s are dotted on hundreds if not thousands and thousands of datasets is as unrealistic as it’s irresponsible.

The subsequent quarter or two will undoubtedly set the tone and tempo for the rest of the yr. As to what that appears like macroeconomically, proper now, your educated guess is probably going pretty much as good as anybody else’s. Regardless of what could also be forward, a powerful, streamlined data technique will probably be important for all enterprises to assist climate the storm and higher meet their buyer wants and enterprise targets as soon as calmer winds prevail.

Amit Walia is CEO of Informatica.