Why should you manage your data as an asset?
In a world where digital is everywhere, data has become the new oil. It influences our decisions, shapes our policies and steers our economy. But like any other asset, it must be managed with care and expertise to deliver its full value.
Defining and transforming data
Data is quite simply dematerialised information capable of travelling across a telecommunications or computer network. It becomes usable information when it reaches someone able to interpret it. In that sense, data is not merely a resource: it is a strategic asset that can make the difference between a company's success and its failure.
A solid, well-organised data estate is what makes sustainable steering of the business possible. That means not only understanding what you already know, but also being able to combine it analytically and predictively to make informed decisions about the future. This deep knowledge of the data estate can reveal unexpected opportunities and protect against potential risks, allowing the company to be steered more effectively and more sustainably.
Wisdom in data management rests on four fundamental pillars: regulate, reduce, reuse and recycle. Regulation ensures data is managed in line with applicable laws and regulations, but also with industry best practice. Reduction seeks to minimise the volume of useless or redundant data stored, while reuse and recycling seek to maximise the value of every existing piece of data. By following these four pillars, companies can be confident they are managing their data not only strategically but sustainably.
Data is an intangible resource that goes beyond mere accounting to become an engine of organisational transformation. It moves us from financial reporting towards a relentless optimisation of the impact of human activity on the planet, steered by ESG risk assessments — and towards reporting on non-financial information.
The characteristics and importance of data
With the arrival of big data, data has become a precious resource. The “4 Vs” (Volume, Velocity, Variety and Veracity) call for specific technologies and analytical and AI methods to create value. For companies, managing these dimensions effectively is no longer optional but necessary. Poor management leads to inefficiency and missed opportunity.
Data under ever more regulation
Like any other strategic asset, data demands particular attention in terms of security, protection and control. This is crucial not only to maintain the organisation's operational integrity but also to guarantee the trust of stakeholders — customers, employees and investors alike.
With the emergence of regulations such as the GDPR, the Data Governance Act, the Data Act, the AI Act and the CSRD, eco-governance and efficient data management have become a complex but necessary exercise. Far from being mere legal requirements, these regulations are best practices that contribute to the durability and value of this intangible asset.
• The GDPR (General Data Protection Regulation), for example, sets a strict framework for processing personal data within the EU, offering individuals stronger protection and putting accountability mechanisms in place for companies. It helps establish a culture of data protection — essential in today's climate, where data breaches can have disastrous financial and reputational consequences.
• The Data Governance Act aims to establish clear rules for managing and exploiting data, promoting responsible and ethical use. It also fosters transparency and interoperability between entities, which is crucial for effective collaboration and informed decision-making.
• The Data Act proposes measures to make data sharing and use easier between companies and sectors, which is crucial to stimulating innovation and competitiveness. It addresses key questions such as data access, use and reuse, helping create an environment conducive to economic growth.
• The AI Act establishes a regulatory framework for the use of AI, ensuring it is deployed ethically and safely. It is essential to note that there will be no AI without protected, secure, quality data. The law helps set rigorous standards for managing the data that feeds AI systems, ensuring the information used is accurate, reliable and securely processed. This allows companies to adopt AI technologies while meeting high standards of ethics and compliance, and ensures AI is developed and used responsibly, without compromising data security or individual privacy.
• The CSRD (Corporate Sustainability Reporting Directive) is a key EU initiative aimed at improving corporate transparency on sustainability. It requires companies to disclose information on their sustainability performance, allowing investors, customers and other stakeholders to better understand the environmental and social impact of company activities. The directive encourages organisations to adopt sustainable practices and communicate transparently about their efforts, which can strengthen stakeholder trust and improve reputation. Complying with the CSRD can also help companies identify and manage sustainability-related risks while highlighting opportunities for sustainable growth.
The circular economy of data
Our mission and responsibility as a digital player is to bring data into the circular economy now. By moving from linear production to a circular economy, data management becomes sustainable and respectful of both the environment and the individual, while creating value for organisations.
In an era where data sets the pace of change, managing these “assets” effectively and efficiently is not merely beneficial — it is imperative. Companies that take a proactive approach to managing their data will be the leaders of the new digital economy. Data must therefore be treated not only as a resource, but as a precious asset deserving our attention, our investment and our care.
Let us do our part. Let us recycle our data. Let us build a greener future, together!
Written by Jawaher Allala
CEO, Systnaps
02/11/2023
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