Today's organizations have become absolutely dependent on the security and efficiency of their data management.   Any loss of data can have drastic consequences, some of which are so profound as to be unknown and unknowable. A significant loss of data can interrupt workflow and cause loss of productivity and profits.  It can be more important, however, to keep data secure because of the potential liability and legal implications of loss. Data protection should be a top priority for any organization. Examine some of the ways data loss can hurt a company.
1)Â Â Â Â Â Effects of Data Loss on Productivity
Modern companies run on information. A substantial portion of nearly every employee's day involves retrieving, forwarding, and acting on information. Lost orders, invoices, specifications, and other customer data can paralyze the fulfillment department of an organization, for example. A development company that loses collaborative communications or code can see thousands of man-hours wasted. Without data protection, the impact on the bottom line can be substantial.
2)Â Â Â Â Â Effects of Data Loss on Customer Loyalty
Missing or compromised information in a customer database affects multiple areas in a company.  Of course, sales are hurt because salespersons rely heavily on note and database driven customer interaction. In addition, data loss can influence customer goodwill drastically. Lost trouble tickets or personal information create unease or even anger and trust is difficult to rebuild. Data protection becomes especially important when a company relies on regular automated communication with its customer base for ongoing sales and relationship development.
3)Â Â Â Â Â Effects of Data Loss on Intellectual Assets
Data itself is an often-overlooked corporate asset. As laws have progressed to include business process, sales techniques, and production methods as protected intellectual property, the need for data protection has become more and more evident. In addition, research and development money usually finds its final expression as data in one form or another. The loss of information translates directly into a loss of money already spent.
4)Â Â Â Â Â Effects of Data Loss on Intangible Assets
The indirect losses from data protection failure can include reduced investor confidence, tarnished market reputation, and long-term diminished decision-making capacity. Legal implications of lost data can be staggering, especially in companies in the banking and insurance segments.
It may be impossible to calculate the total financial losses possible from data loss. The information age has presented a paradigm in which data access is crucial to nearly every job. The consequences range from frustrating to severe, but there is no way to manage the risk without implementing contingency strategies. All companies need to consider that more time, effort, and money will be spent on data recovery than on proactive data protection.
1)Â Â Â Â Â Effects of Data Loss on Productivity
Modern companies run on information. A substantial portion of nearly every employee's day involves retrieving, forwarding, and acting on information. Lost orders, invoices, specifications, and other customer data can paralyze the fulfillment department of an organization, for example. A development company that loses collaborative communications or code can see thousands of man-hours wasted. Without data protection, the impact on the bottom line can be substantial.
2)Â Â Â Â Â Effects of Data Loss on Customer Loyalty
Missing or compromised information in a customer database affects multiple areas in a company.  Of course, sales are hurt because salespersons rely heavily on note and database driven customer interaction. In addition, data loss can influence customer goodwill drastically. Lost trouble tickets or personal information create unease or even anger and trust is difficult to rebuild. Data protection becomes especially important when a company relies on regular automated communication with its customer base for ongoing sales and relationship development.
3)Â Â Â Â Â Effects of Data Loss on Intellectual Assets
Data itself is an often-overlooked corporate asset. As laws have progressed to include business process, sales techniques, and production methods as protected intellectual property, the need for data protection has become more and more evident. In addition, research and development money usually finds its final expression as data in one form or another. The loss of information translates directly into a loss of money already spent.
4)Â Â Â Â Â Effects of Data Loss on Intangible Assets
The indirect losses from data protection failure can include reduced investor confidence, tarnished market reputation, and long-term diminished decision-making capacity. Legal implications of lost data can be staggering, especially in companies in the banking and insurance segments.
It may be impossible to calculate the total financial losses possible from data loss. The information age has presented a paradigm in which data access is crucial to nearly every job. The consequences range from frustrating to severe, but there is no way to manage the risk without implementing contingency strategies. All companies need to consider that more time, effort, and money will be spent on data recovery than on proactive data protection.
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