All we heard about this term “Data Consolidation”. In offices, colleges we use this term the most. So, in this blog we will understand the meaning of data consolidation, its importance in daily life. Let’s get started with the details.
What is Data Consolidation?
Data consolidation is basically the process of combining and storing various types of data in a single place. It helps in turning unprocessed and raw data into better pieces of knowledge and insights that are valuable and required in the corporate world. The term ‘data integration or consolidation’ is sometimes used equally as ‘data integration’ as they mean one and the same thing. Consolidating the data provide you with better opportunities in business which helps in managing data resources and also improves insides in different types of data provided in the business.
Process of Data Consolidation
It further includes four main processes.
- Data sources: This type refers to the collection of data from the various sources available.
- ETL: This stands for extract, transform and load. This is a process that is used to replicate data from a source to a significant data center. The most important step happens when the data is entered into the system. It is a more progressive way of data replication from the source into the crowd warehouse center.
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Best Ways of Data Consolidation
- Check the compatibility between source and target data types: The compatibility between both of these data types is extremely important and they should obviously be met compatible with each other before working further on them.
- Always save duplicate versions of your data: You may require the same information after a few days or a few months to regulate the process that you are actually working on, Also retrace the moves that you just made in the business. At that time you would require the previously saved data and hence you should keep it safe at an encrypted place.
- Always keep a check: Always fix the characters of your data. Keep standard values in regular use as they are far better than random values used. Sometimes when you move this data from one place to another, the tools may be unaware that the data is being stored in another distinct format. After standardization, you improve the chances of a reliable outcome.
Challenges Encountered during Data Consolidation
Just like every other process, you may face some challenges while consolidating the data. Let’s have a look at some of the major challenges –
- Resources are limited: Data integration is indeed a hectic process. Sometimes due to the involvement of more amount of data types and sources, the process becomes tedious and we become nothing but helpless.
- Security problems: security is indeed a major concern nowadays be it online or offline mode. Backup capabilities are a must as data can be corrupted or lost at any moment. Being responsible for the data is a very big thing.
Why is Data Consolidation Important for Companies?
Data consolidation is a worthwhile process for companies as it is basically a data management process that is a very important aspect. It makes all of the data handy and anyone can access the information without any type of hassles. This increases the productivity and efficacy of the company by many folds. Also, data consolidation reduces the number of costs and operates at minimal amounts, and allows you to analyze your own data records at a later point in time, which is a very big advantage.
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What are the benefits of consolidating data
- Management of data is at your own fingertips.
- All of your data is now safely stored in a single place.
- Data consolidation is a good way of cost-cutting for companies.
- It is a way easier process than maintaining handwritten records.
- You can easily customize data which gives way to better results.
The data consolidation process offers various businesses a number of benefits. When data is stored at a single place rather than scattered everywhere in pieces, it requires a smaller setup and is easier to manage. This results in an effective cost-cutting mechanism for the businessman. Also, it results in reduced workload as now there will be fewer processes involved, which is a great time managing task. Recovery solutions become way easier when all of your important data is stored in a single secure place.
The bottom line for this article would be that data consolidation is a very worthwhile process for all the companies and business is out there. It is basically a data integration process that is worthwhile in time managing and cost-cutting. If you have any further doubts left please tell us in the comment section and we will be back with the solution to your question and also a new article on a very interesting topic that you cannot miss.