The Top Five Information Management Challenges Businesses Face
Project managers are essential for an organisation as they hold the team and the project together. Without a leader well-versed in what it takes to be a good project manager, everyday challenges will become increasingly difficult. This can result in unfinished tasks and unsuccessful outcomes.
To be a good project manager, you will need necessary project management skills which will help you meet the demands of your job role. Having the right skills and knowing the best ways to navigate projects means you can run businesses effectively and more efficiently.
Technical knowledge and soft skills are essential in order to see projects through from start to finish. Project management skills are necessary for effective planning, efficient resource allocation, and timely project completion. With these skills, a project manager can help businesses stay organised, meet objectives, and deliver high-quality results.
What is Information Management?
Before we dive into the key challenges of information management, it’s essential to understand what it is and why it matters in a business context.
So, what is information management? Information management is the process of collecting, storing, managing and maintaining data and other types of information. It involves identifying what information is needed, sourcing, organising, storing and protecting it before distributing and using the information to support business decisions, operations and services. Organisations build dedicated information management systems to help them optimise resources and support business processes.
Information management is often confused with data management. While the two are interlinked, data management is a subset of information management and focuses specifically on handling raw data, while information management focuses on how data is transformed into meaningful information to be used in a business environment.
Role of Information Management in Business
Effective information management systems play a crucial role in various business aspects, including decision-making, productivity and compliance with laws and regulations.
Despite various information management challenges, there are many benefits of information management in business. It plays a key role in improving customer service, personalising experiences, resolving issues and enhancing collaboration between teams by enabling information sharing. Effective information management systems can also help organisations control the creation and growth of records, which reduces costs and increases productivity and efficiency.
Information management systems enable organisations to adapt to market changes and innovate through data-driven insights. They also enhance cybersecurity and ensure critical business information is protected and backed up, reducing risks and improving compliance with regulations.
Types of Information Management Systems
There are various information management systems used to collect, process and analyse data. Each type of system plays a different role in helping organisations manage information effectively.
Let’s dive into the different types of information management systems:
- Business Intelligence (BI) – BI systems analyse data from multiple sources to support decision-making processes. Organisations can identify trends and create data-driven strategies through reports and visualisations.
- Customer Relationship Management (CRM) – CRM systems manage customer data, sales pipelines and customer interactions, helping businesses improve customer experience and relationships.
- Sales Force Automation (SFA) – SFA systems streamline and automate the sales process through tasks like follow-ups, lead tracking and performance reporting.
- Transaction Processing (TPS) – TPS manages day-to-day transactions, including sales, payroll and inventory, providing efficiency, accuracy and reliability while handling data.
- Knowledge Management (KM) – KM systems store insights and expertise, enabling employees to access and apply best practices.
Top Five Challenges of Information Management in Business
Organisations must overcome various information management challenges in business to maintain competitiveness in the market and harness the full potential of data assets.
Here are the key challenges of information management:
- Reducing Information Silos
Without a proper information management plan with robust data sharing protocols and standardised data formats, each department in a business will end up creating information silos. This makes sharing or accessing information challenging and leaves decision-makers with incomplete information, which can affect overall outcomes.
- Securing the information
Securing information is crucial, given the increased importance of cybersecurity and strict data privacy laws. Organisations must protect sensitive data from unauthorised access and breaches while ensuring that authorised users can still access and extract required information. This involves encryption, user access controls, regular security audits and employee data protection training.
- Digitising the information
Digital transformation is essential for all companies in today’s business landscape, with incorporating digital technologies being the key to unlocking success. One of the key challenges of information management is utilising the correct tools to digitise data and reach high levels of return on investment.
- Manage information growth
As the volume of information grows, many organisations struggle to manage their information. Without proper information management systems in place, valuable information can become disorganised and potentially lost. Effective information management for businesses requires scalable storage solutions and strong classification methods.
- Poor Data Quality and inconsistency
One of the most significant information management challenges in business is maintaining high-quality, consistent data. False, outdated or duplicated information can lead to inaccurate analysis and poor decision-making. Ensuring data is reliable and consistent across all departments is key to implementing effective information management systems.
Earn an Information Management Degree at BSBI
If you seek the skills and knowledge to gain expertise in information management in business, check out the MSc Information Technology Management programme offered at the Berlin School of Business and Innovation.
This full-time master’s programme explores the key challenges of information management in the business world and evaluates the impact and rise of technology in business. It also offers three pathways in the third term: Sustainability Development, Project Management and IT Management and Administration, offering a tailored learning experience.
So, what are you waiting for? Enrol in this exciting postgraduate programme at BSBI and join us in Berlin or Paris today. Learn more here.
