Evolve Your Business: 7 Essential Benefits of Data Democratization

In just the last two years, 90% of the data that exists has been created. That makes large amounts of data a fairly new phenomenon that businesses have to deal with.

For most businesses, the majority of the data has been maintained by the IT department, but a new movement known as data democratization is changing all of that.

If you’re looking for a way to keep your business at the forefront of your industry, keep reading to learn more about what data democratization is and how it can help your business grow.

What Is Data Democratization?

Data democratization essentially opens the doors to the data and allows every department and employee to have full access to it. This prevents the need to go through the IT department to get information and has other distinct benefits.

There are also drawbacks of this method which has many professionals debating about using data democratization. Be sure to get more information about this if you’re not sure this is best for your business.

Benefits of Data Democratization

Let’s jump right into some of the benefits of using data democratization so you can get a better understanding of what it can do for you and your business.

1. Faster Access to Data

One of the biggest benefits of data democratization is that every member of your company will have instant access to everything they need when it comes to data.

Without data democratization, most companies required an employee to go through a long process to request data for a specific purpose. In many cases, this limited how much work an employee could get done when they needed that data.

By allowing all employees full access to data, it can streamline many of the company’s processes which in turn can improve production.

2. Quicker Decision-Making

Most departments rely on data to make decisions about what needs to be done to reach their goals. However, when they have limited access to that data or need to wait to gain access, this prevents them from quickly making decisions.

Many companies have a team of data analysts that took care of this part of the process for other departments. However, with only one team analyzing data for multiple departments, this can mean taking more time to get results.

Today, there are more tools available that make it possible for any individual to analyze data. This allows every department to check the data and get the answers they need to know how to proceed.

3. Greater Communication

When everybody has access to data, it opens up the lines of communication between departments. This can help employees feel more united and build a sense of community in your business.

This also can bring attention to problems and opportunities more quickly when there are more eyes on the information. For example, someone from the sales department may notice a trend that the marketing team can take advantage of.

4. Encourages Ownership

A great way to encourage employees to take greater ownership in the company is to provide them with access to the data. This makes them feel more valued and trusted. As a result, they’ll produce better work.

Individuals that are motivated to use the data they have access to are a huge asset to your company. They can provide you with insights and discover trends that are specific to their areas of work.

Often, analyst teams miss details because their job is to focus more on the company as a whole and the big picture. However, individuals can use the data to improve their own processes and those in their departments.

The biggest advantage, however, of employees taking ownership in your company is they’ll work harder to see the company grow when they see themselves as a crucial part of the business rather than a mere employee.

This is the type of employee you want in your company: one who does more than show up for a paycheck and data democratization is one way to create an environment in which that mindset is nurtured.

5. More Independent Teams

When teams and departments have to rely too much on each other, it can inhibit their ability to produce high-quality work in a short period of time. This is particularly true when they have to wait for data analysis.

Although we already discussed the importance of bringing your company closer together, there’s also value in departments being able to make decisions on their own without needing constant input from other areas.

Teams that can use data they access themselves to know what they should be doing can produce higher quality work and will often be happier when they have that sense of independence.

6. Opportunities for Cross-Hiring

Just because you hired someone for their ability to make a sale doesn’t mean that’s the only thing they’re good at.

If you’re looking for more people to analyze data for a specific project, you can make things far simpler by starting by looking at your current employees. After giving access to everyone, you may discover analyzation skills in other areas.

This is particularly great for short-term projects so you can move people around as needed between departments.

7. Easier to Scale

When you limit access to data, it can be hard to scale that aspect of your business. After all, as you gain more data, you’ll need to hire more people to analyze it.

However, if everybody in your company already has access to data and the ability to analyze it, then this makes scaling your business far easier.

As mentioned in the previous point, you can use existing employees to help with ongoing data analysis. This allows you to continue to use the data you get without needing to expand or create a department devoted to it.

Want More Business Tech Tips?

Now you have a better understanding of what data democratization is and how it can help propel your business into the future.

If you want more information about how technology can help your business, keep reading our blog. We have tons of articles that can help your company grow by using the tools you have available today.