Supercharge your business with logical data management

In this exclusive piece by Alexey Sidorov, Data Science Guru and Evangelist at Denodo lists down the challenges of traditional data management approaches and the need for Logical Data Management approach.

In today’s data-driven world, enterprises need to process information from countless sources: social media, customer interactions, market trends, and internal processes. The sheer volume and variety of this data can be overwhelming, but if harnessed effectively, it has the potential to transform businesses. This is particularly relevant in the Middle East, where rapid digital transformation reshapes industries.

The Challenges of Traditional Data Management Approaches

Unfortunately, many organisations in the Middle East still rely on traditional data management methods, which come with a host of challenges. They still rely on legacy systems such as extract, transform, and load (ETL) processes and data warehouses, which are not equipped to handle the speed, complexity, and scalability of modern data needs.

Data fragmentation is another common issue in traditional systems; because it takes time to update data sources using ETL processes, data can get out-of-synch, leading to inefficiencies and missed opportunities, particularly in sectors like banking and finance, in which up-to-date data is key to delivering personalised services.

Because traditional approaches can suffer from slow response times and operational inefficiencies, they can delay critical business processes, negatively impacting productivity and decision-making—which can be particularly problematic in healthcare and retail, where timely data access is critical.

Understanding Logical Data Management

Unlike traditional data management approaches, which often require data to be moved and stored in centralised warehouses, logical data management approaches enable organisations to provide access to unified data from diverse sources without the need for physical consolidation. Logical data management approaches enable a unified layer that enables seamless access to data wherever it resides.

Key components of logical data management include:

1. Data Virtualisation: This technology enables data to be accessed in real-time without moving it from its original location. It creates a unified view of data from different sources, enabling businesses to make faster, more informed decisions.
2. Dynamic Query Optimisation: Logical data management systems optimise queries in real-time, so data retrieval is both fast and efficient, even from complex, diverse data sources.
3. Automated Data Management Tasks: These systems automate routine tasks such as data integration, transformation, and cleansing, freeing up valuable resources, reducing the likelihood of human error while significantly enhancing efficiency.
4. Centralised Governance: Logical data management solutions enable a single point of control for data policies, security, and compliance, so that enterprise data is managed according to organizational standards and compliant with regulatory requirements, regardless of where it resides.

The benefits of logical data management are significant. Forrester, in the “The Total Economic Impact™ of Data Virtualization,” found that companies adopting this approach can reduce data delivery times by 65%, gain real-time access to critical information, and make better, faster decisions that drive business success.

Creating a Business Case

There are several advantages of investing in a logical data management solution. Apart from making data efficiently accessible from diverse sources, it can yield significant returns. Businesses adopting this technology can see tangible benefits:

1. Cost Savings:
   1. Operational Efficiency: In the same report mentioned above, Forrester estimates that companies can save $1.7 million by streamlining data management processes and reducing the need for manual intervention.
   2. Legacy Integration Cost Reduction: Forrester also estimates, in the Total Economic Impact™ report, that businesses can save $1.5 million in data integration costs by reducing dependence on outdated systems.
2. Real-World Examples:
   1. Sanofi, a global life sciences company, uses the Denodo Platform, a logical data management solution, to simplify the existing data landscape and enable the timely delivery of data. Since implementing the Denodo Platform, Sanofi has been able to provide 100% accurate data without errors or delays, according to business requirements and expectations.
   2. BHP, a top producer of major commodities, including iron ore, coal, and copper, achieved faster iterations on data transformation and dashboard development as long as materialised data integration was no longer required. The Denodo Platform enabled rapid virtualisation of multiple data sources across multiple geographies, enabling better risk management.
3. Scalability:
   1. Logical data management platforms are capable of handling 800 million to 1 billion data points daily, demonstrating their ability to scale with growing data volumes.
   2. They are compatible with leading cloud providers like Microsoft Azure, Amazon Web Services (AWS), and Google Cloud Platform, so logical data management solutions can support organisations as they expand and evolve, a key consideration for businesses in the region looking to leverage cloud-based solutions for growth.

Adopting a logical data management solution is a strategic imperative for modern enterprises in the Middle East. By unifying data from diverse sources, reducing operational inefficiencies, and enabling real-time decision-making, businesses can unlock the full potential of their data and “supercharge their business.” As the data landscape evolves, staying ahead of emerging trends and challenges will be key to maintaining a competitive edge in the region.

Image Credit: Denodo