You’ve probably heard tech buzzwords like data-driven decision making, advanced analytics, “artificial intelligence (AI), and so on. The similarity between those terms is that they all require data. There is a famous quote in the computer science field — “garbage in, garbage out” — and it is a wonderful example of how poor data leads to bad results, which leads to terrible insight and disastrous judgments. Now, what good is advanced technology if we can’t put it to use?
The problem is clear: organizations need to have a good data management system in place to ensure they have relevant and reliable data. Data management is defined by Oracle as “the process of collecting, storing, and utilizing data in a safe, efficient, and cost-effective manner.” If the scale of your organization is large, it is very reasonable to employ a holistic platform such as an enterprise resource planning (ERP) system.
On the other hand, if your organization is still in its mid to early stages, it is likely that you cannot afford to employ ERP yet. However, this does not mean that your organization does not need data management. Data management with limited resources is still possible as long as the essential notion of effective data management is implemented.
Here are the four fundamental tips to start data management:
Develop a clear data storage system – Data collection, storage, and retrieval are the fundamental components of a data storage system. You can start small by developing a simple data storage system. Use cloud-based file storage, for example, to begin centralizing your data. Organize the data by naming folders and files in a systematic manner; this will allow you to access your data more easily whenever you need it.
Protect data security and set access control – Data is one of the most valuable assets in any organization. Choose a safe, reliable, and trustworthy location (if physical) or service provider (if cloud-based). Make sure that only the individuals you approve have access to your data. This may be accomplished by adjusting file permissions and separating user access rights.
Schedule a routine data backup procedure – Although this procedure is essential, many businesses still fail to back up their data on a regular basis. By doing regular backups, you can protect your organization against unwanted circumstances such as disasters, outages, and so forth. Make sure that your backup location is independent of your primary data storage location. It could be a different service provider or location, as long as the new backup storage is also secure.
Understand your data and make it simple – First, you must identify what data your organization requires to meet its objectives. The specifications may then be derived from the objectives. For example, if you are aiming to develop an employee retention program, then you will need data on employee turnover to make your data more focused and organized. Remove any data that is irrelevant to the objectives of your organization, including redundant or duplicate data.
Data management has become a necessity in today’s data-driven era. No matter what size and type of your organization, you should start doing it now. Good data management is still achievable, even with limited resources. The tips presented are useful only as a starting point for your data management journey.
Learn more about data management by exploring our articles on data analytics.
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Editor’s Note: This post was originally published on December 9, 2021 and last updated on September 17, 2024.
In May 2023, Samsung Electronics prohibited its employees from using generative artificial intelligence (AI) tools like ChatGPT. The ban was issued in an official memo, after discovering that staff had uploaded sensitive code to the platform, which prompted security and privacy concerns for stakeholders, fearing sensitive data leakage. Apple and several Wall Street Banks have also enforced similar bans.
While generative AI contributes to increased efficiency and productivity in businesses, what makes it susceptible to security risks is also its core function: taking the user’s input (prompt) to generate content (response), such as text, codes, images, videos, and audio in different formats. The multiple sources of data, the involvement of third-party systems, and human factors influencing the adoption of generative AI add to the complexity. Failing to properly prepare for and manage security and privacy issues that come with using generative AI may expose businesses to potential legal repercussions.
Safety depends on where data is stored
So, the question becomes, how can businesses use generative AI safely? The answer resides in where the user’s data (prompts and responses) gets stored. The data storage location in turn depends on how the business is using generative AI, of which there are two main methods.
Off-shelf tools: The first method is to use ready-made tools, like OpenAI’s ChatGPT, Microsoft’s Bing Copilot, and Google’s Bard. These are, in fact, nothing but applications with user interfaces that allow them to interact with the base technology that is underneath, namely large language models (LLMs). LLMs are pieces of code that tell machines how to respond to the prompt, enabled by their training on huge amounts of data.
In the case of off-the-shelf tools, data resides in the service provider’s servers—OpenAI’s in the instance of ChatGPT. As a part of the provider’s databases, users have no control over the data they provide to the tool, which can cause great dangers, like sensitive data leakage.
How the service provider treats user data depends on each platform’s end-user license agreement (EULA). Different platforms have different EULAs, and the same platform typically has different ones for its free and premium services. Even the same service may change its terms and conditions as the tool develops. Many platforms have already changed their legal bindings over their short existence.
In-house tools: The second way is to build a private in-house tool, usually by directly deploying one of the LLMs on private servers or less commonly by building an LLM from scratch.
Within this structure, data resides in the organization’s private servers, whether they are on-premises or on the cloud. This means that the business can have far more control over the data processed by its generative AI tool.
Ensuring the security of off-the-shelf tools
Ready-made tools exempt users from the high cost of technology and talent needed to develop their own or outsource the task to a third party. That is why many organizations have no alternative but to use what is on the market, like ChatGPT. The risks of using off-the-shelf generative AI tools can be mitigated by doing the following:
Review the EULAs. In this case, it is crucial to not engage with these tools haphazardly. First, organizations should survey the available options and consider the EULAs of the ones of interest, in addition to their cost and use cases. This includes keeping an eye on the EULAs even after adoption as they are subject to change.
Establish internal policies. When a tool is picked for adoption, businesses need to formulate their own policies on how and when their employees may use it. This includes what sort of tasks can be entrusted to AI and what information or data can be fed into the service provider’s algorithms.
As a rule of thumb, it is advisable not to throw sensitive data and information into others’ servers. Still, it is up to each organization to settle on what constitutes “sensitive data” and what level of risk it is willing to tolerate that can be weighed out by the benefits of the tool adoption.
Ensuring the security of in-house tools
The big corporations that banned the use of third-party services ended up developing their internal generative AI tools instead and incorporated them into their operations. In addition to the significant security advantages, developing in-house tools allows for their fine-tuning and orienting to be domain and task-specific, not to mention gaining full control over their interface user experience.
Check the technical specifications. Developing in-house tools, however, does not absolve organizations from security obligations. Typically, internal tools are built on top of an LLM that is developed by a tech corporation, like Meta AI’s LLaMa, Google’s BERT, or Hugging Face’s BLOOM. Such major models, especially open-source ones, are developed with high-level security and privacy measures, but each has its limitations and strengths.
Therefore, it would still be crucial to first review the adopted model’s technical guide and understand how it works, which would not only lead to better security but also a more accurate estimation of technical requirements.
Initiate a trial period. Even in the case of building the LLM from scratch, and in all cases of AI tool development, it is imperative to test the tool and enhance it both during and after development to ensure safe operation before being rolled out. This includes fortifying the tool against prompt injections, which can be used to manipulate the tool to perform damaging cyber-attacks that include leaking sensitive data even if they reside in internal servers.
Parting words: be wary of hype
While on the surface, the hype surrounding generative AI offers vast possibilities, lurking in the depths of its promise are significant security risks that must not be overlooked. In the case of using ready-made tools, rigorous policies should be formulated to ensure safe usage. And in the case of in-house tool deployment, safety measures must be incorporated into the process to prevent manipulation and misuse. In both cases, the promises of technology must not blind companies to the very real threat to their sensitive and private information.
The business intelligence and analytics industry reached over $ 19 billion globally in 2020, albeit the derailed economic performance caused by the pandemic. The business intelligence market growth experienced a 5.2% increase, and the data analytic growth rate is expected to rise in the coming years as companies realize the need to manage data to make better decisions.
According to Angela Ahrendts, a former retail Vice President at Apple Inc., customer data is the most significant differentiator among businesses in this era. Companies that know how to maneuver heaps of data to create strategic moves usually succeed. To determine how companies adopt and implement data analytics, let’s first understand how data can make a company’s operations efficient.
Data Analytics: Four Ways to Increase Company Performance
As discussed earlier, data analytics is beneficial for making more accurate business decisions. Managers and executives can take action on the data insights they get to drive better competitive advantages in their markets. There are four ways data analytics can accelerate business performance:
The first way is by creating informed decisions. One of the key benefits that businesses look out for when dealing with data analytic solutions is developing better and more accurate decisions from the insights they get from analyzing data.
There are two processes that ensure the development of better decisions: predictive analytics and prescriptive analytics. Prescriptive analytics are utilized to project the way companies react to forecasted trends, whereas predictive analytics focus on events that might occur after analyzing collected data.
Improving efficiency is another route. Data analytics is highly beneficial especially in the operation management for streamlining operations. For example, companies can retrieve and assess their data relating to supply chains to discover where delays in their supply networks happen or to forecast areas where problems emerge and use these insights to prevent any issues.
Data analytics also enables risk mitigation. To cut down losses, data can be utilized to reduce physical and financial risks in business. Through collecting and assessing data, inefficiencies can be either identified or predicted. Also, potential risks are revealed to inform management on creating preventive policies.
Lastly, data analytics enhances security. As many businesses confront numerous data security threats in today’s era, it is essential to keep the company’s cybersecurity out of dangerous attacks that cause financial or brand image blow. A company can evaluate, process, and draw insights from its audit logs to showcase the source of previous cyber breaches. The outcome of this exercise would be to recommend possible remedies to the problem.
Join The KPI Institute’scertification course on data analysis today to learn more about data analytics, improve your analytical skills and make wise business decisions.
