Is it better for companies to have too much data or too little data Essay

Is it better for companies to have too much data or too little data Why - Essay Example The data of an organization includes all sort of information that is recorded either in paper or in computer system. The business activity is mainly depended on data and information. Documentary evidence is required for most of the important activities in a business. The size of the data requirement of an organization increases by the increase in the size of the business. â€Å"Every process uses data and almost all business rules are enforced by data† (B2T training, 2008). The rules, regulations and limitations of the business are always made in a document form. Documentary evidence is required for every activity of the business. When any relevant data is lost in the business certain activities get interrupted. This is harmful for the day to day working of the business. Therefore data maintenance is a very critical activity in a business. The data requirements of a business also differ by difference in the nature of the business being carried on by it. For example in the case of an insurance company the relationship between the company and the client is evident only from the document that is agreed upon by the client and the company. Therefore, in a large business entity data management is a separate specialized activity. The data that are used in the company are both external and internal. â€Å"Once internal data is understood, a detailed review of available external vendor data should be conducted† (Lucker, 2005). What the companies should focus on while maintaining data is that only relevant data should be maintained. Relevant data refers to the data that are required for the daily running of the business and the data that has to be maintained by the company as per the statute. But the question under discussion is that whether the companies should maintain too much or too little data. Too much data is both beneficial as well as harmful for the organization. Too much data will contain