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Challenges in Data Management

Josmi Jose
Josmi Jose
Senior Consultant, Software Intensive Systems
September 18, 2025 | 7:41 pm UTC
Josmi Jose
Josmi Jose
Senior Consultant, Software Intensive Systems

Challenges in Data Management: Unlocking Insights with Data Management SPICE

Effective data management in our current business environment is crucial to success. Data drives decision making, operational efficiency and competitive advantage, but related challenges must be addressed to support accuracy, security and usability concerns. This article explores key challenges for effective data management, their implications and potential approaches to developing more reliable data management processes.

Data quality: The bedrock of insights

To be of value for making informed decisions, high-quality data must be:

  • Accurate
  • Consistent
  • Complete
  • Timely
  • Relevant

Human error or integration failures can lead to unreliable data, causing flawed decisions and financial losses. For example, inconsistent address formats in a customer database can disrupt service delivery.

Potential approach: Implement robust data governance, regular data cleansing and validation processes to maintain accuracy and reliability.

Safeguard assets with data security and privacy

With cyberattacks becoming more frequent all the time, protecting sensitive data and complying with regulations like the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) is critical. Weak access controls or outdated encryption can expose vulnerabilities, risking breaches.

Potential approach: Encrypting data at rest and in transit, enforcing strict access controls and proactive monitoring and rapid response are essential to mitigate risks, and all these activities can be accomplished with regular security audits. Data stewardship and ownership establish accountability for managing and protecting data throughout its life cycle.

Creating a unified view with data integration

Integrating data from varied sources including legacy systems, cloud platforms and external databases is challenging due to silos and inconsistent formats. 

Potential approach: Adopt standardized data models; use Extract, Transform, Load (ETL) tools; and enable real-time integration to create a cohesive data environment and help to make sure trustworthiness of data and data sources. A unified data model can harmonize disparate data sources, enabling seamless data flow and accurate analytics.

Scalability and data volume: Handling data growth

Exponential data growth strains legacy systems, increasing the risk of performance bottlenecks and higher costs. Organizations must be able to accommodate increase data volumes without compromising performance or incurring excessive costs.

Potential approach: Leverage cloud-based solutions, distributed computing frameworks and data partitioning to manage large datasets efficiently. By designing scalable architectures, organizations can more efficiently manage growing data volumes and support complex analytics.

Data governance helps to support compliance

Navigating regulatory complexity requires clear governance policies. Non-compliance with laws like GDPR can lead to penalties and reputational harm. However, establishing clear policies, roles and responsibilities can be complex, especially in large organizations with fragmented data systems.

Potential approach: Establish governance frameworks, assign data stewards and conduct compliance audits to align with regulations and maintain adherence to standards. 

Inconsistent and incomplete data

Inconsistent formats, such as varying date structures, or missing data can lead to biased analyses. For instance, varying date formats like DD/MM/YYYY vs. MM/DD/YYYY can complicate integration efforts. Similarly, incomplete data with missing values or unrecorded attributes can lead to biased analyses and flawed decisions.

Potential approach: Enforce data entry standards; define and implement data quality criteria, rules and thresholds; and use data cleansing tools. Regular audits can help identify and resolve discrepancies, promote consistency, and completeness.

Reduce the redundancy of data duplication

Duplicate records increase costs and cause errors. For example, duplicated customer records can lead to redundant communications and customer dissatisfaction. Causes include data entry errors, system integration issues and inadequate validation.

Potential approach: Deduplication tools, standardized and automated data entry, and integrated data management systems can help mitigate duplication. Regular data audits are essential to identify and merge redundant records, helping maintain a single source of truth.

Modernizing infrastructure to overcome technological limitations and legacy systems

Outdated systems limit scalability and integration. This can hinder advanced analytics and real-time processing, leading to inefficiencies and increased maintenance costs.

Potential approach: Modernizing infrastructure with cloud solutions, scalable databases and distributed systems can overcome these limitations. Transition to cloud-based data warehouses and scalable databases to support modern data needs.

Empowering teams with data literacy

Poor data literacy leads to misinterpretation and underutilization of data.

Potential approach: Offer training, integrate data education into onboarding and foster a data-driven culture with dedicated champions. Data champions and centralized resource hubs can further support stakeholders in using data confidently.

Managing metadata with data context

Ineffective metadata can reduce data discoverability and complicate governance. For example, incomplete metadata may obscure data lineage, hindering compliance efforts.

Potential approach: Implement standardized metadata schemas and automated tools to enhance usability and compliance. By leveraging metadata effectively, organizations can improve data discoverability and allow for accurate analysis.

A strategic approach to data management

The challenges of data management, ranging from quality and security to integration and scalability, are complex but surmountable. By adopting robust governance frameworks, modernizing infrastructure and promoting data literacy, organizations can transform these challenges into opportunities. Effective data management is essential for keeping data a reliable asset and driving innovation, efficiency, and competitive advantage in an increasingly data-driven world.

Adopting the intacs® Data Management SPICE model (SPICE Center | intacs.info) offers organizations a powerful and structured approach to overcome the multifaceted challenges of data management. The Data Management SPICE PRM/PAM (Process Reference Model/Process Assessment Model) provides help with best practices to evaluate and enhance an organization’s data management activities. It identifies gaps and inefficiencies across key areas such as data governance, quality, integration, security, privacy and lifecycle management. This helps prioritize improvements to optimize data capabilities.

Benefits of the Data Management SPICE PAM

By using the Data Management PAM, organizations can:

  • Rely on data accuracy, consistency and completeness
  • Strengthen data security against threats and unauthorized access
  • Boost efficiency by minimizing data duplication and inconsistencies
  • Reduce risks of non-compliance with regulations
  • Enhance understanding of data value and usage
  • Support timely, informed decision-making with accurate data
  • Reduce costs by streamlining processes and eliminating redundancies

Conclusion

The Data Management PRM/PAM, grounded in Automotive SPICE®, offers a systematic framework to improve data management, especially in the automotive industry. By addressing key challenges and aligning with industry standards, it helps organizations achieve higher data quality, security, compliance and operational efficiency. 

UL Solutions leverages extensive experience to streamline data management, aligning practices with evolving standards. We offer comprehensive evaluations and proven approaches to support compliance, enhance data reliability and mitigate risks related to data quality and data governance.

THE ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY AND IS NOT INTENDED TO CONVEY LEGAL OR OTHER PROFESSIONAL ADVICE.

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