What is data modernization: Best practices for future-ready data management

As businesses grow and adapt, so does the complexity of managing their data. Many find themselves accumulating massive amounts of data across various systems, departments, and platforms. While this data holds incredible potential in driving significant business insights, much of it ends up stuck in isolated, disconnected systems—commonly referred to as data silos. These silos fragment valuable insights and prevent organizations from seeing the full picture of their operations.

Research shows that employees spend an average of 12 hours a week simply trying to locate and access data spread across disconnected systems. Additionally, Nearly half of marketers (47%) identify data silos as their biggest barrier to unlocking valuable insights. To address these challenges, more businesses are turning to data platform modernization, a solution that’s rapidly gaining traction as companies seek to harness the full potential of their data.

Data modernization services are all about changing how businesses manage and use their data. It helps break down complex data silos and connects data across all systems, making it easier to access and use. To better understand data modernization, explore our guide to learn its key benefits and best practices. Learn how modernizing your data infrastructure can streamline management, boost efficiency, and drive stronger business outcomes.

With data spread across various systems, data modernization enables organizations to make informed decisions by seamlessly extracting and connecting that data. But how does it work? Let’s explore the concept of data modernization and how it can help your organization fully harness the power of your data.

What is data modernization?

Data modernization involves transforming an organization’s outdated and fragmented data systems into a modern, integrated infrastructure capable of handling today’s data-driven demands. It involves upgrading or replacing legacy systems, breaking down data silos, and adopting newer technologies like cloud computing, artificial intelligence (AI), and machine learning (ML) to ensure data is more accessible, scalable, and secure.

The data modernization process follows a multifaceted approach involving data integration, cleansing, consolidation, transformation, and migration. Some key aspects of data modernization include:

• Consolidating data silos: Breaking down isolated data systems to create a unified view of data across the organization.

• Cloud migration: Moving data storage and processing from on-premises systems to cloud-based platforms, which offer scalability and flexibility.

• Data governance and security: Implementing policies and technologies, such as Data Loss Prevention (DLP) and Identity and Assess Management (IAM) to ensure data is accurate, secure, and compliant with regulations.

• Real-time data processing: Enabling organizations to access and analyze data in real-time, improving decision-making and operational efficiency.

• Enhanced analytics: Modern platforms often support advanced analytics tools like AI and machine learning to extract deeper insights from data.

Key benefits of data modernization: What modern businesses stand to gain

Owing to the considerable impact of big data modernization, 84% of the businesses are well along in their data modernization initiative. In fact, around one-third (34 percent) claim to have fully implemented such initiatives, while half have data modernization efforts currently underway. This shift has been crucial for businesses looking to accommodate the growing volume, variety, and velocity of data.

But what does this transformation mean for business outcomes, and what tangible benefits does it bring to organizations adopting data modernization solutions? Let’s explore how this shift transforms business operations and drives success in today’s data-centric business environment.

• Decision-making made easier

Data modernization enables businesses to consolidate their data from various sources into a single, unified system. This integration eliminates data silos, allowing decision-makers to access real-time, accurate, and comprehensive data. With this level of visibility, companies can make informed, data-driven decisions faster and more confidently.

For instance, a business with modern data architecture can quickly analyze sales trends, customer behavior, or supply chain performance. This enables them react to market changes and optimize its strategies accordingly.

• Boosting operational efficiency is no more a hassle

Modern data systems make managing data a lot smoother and more efficient. Tasks that once took hours, like data collection, cleaning, and reporting, can now be automated, cutting down on the time employees spend on routine, administrative work. This means teams can shift their focus from repetitive tasks to more important, strategic projects that boost productivity.

On top of that, modern platforms are designed to handle large amounts of data seamlessly. As your business grows, your data infrastructure can keep up without being slowed down by outdated systems.

• Efficient collaboration across teams

Big data modernization gives organizations the flexibility to keep up with new business demands and evolving technology. With cloud-based systems, businesses can easily increase their data storage and processing capabilities as their needs change. Plus, cloud platforms allow teams to access data from anywhere, making collaboration across locations easier and more efficient.

This kind of flexibility is becoming increasingly important for businesses looking to gain an edge. It allows them to quickly adapt to shifting market trends, customer preferences, and technological advancements.

• No more data breach

Modern data platforms are built with security as a top priority. They have advanced features like encryption, strict access controls, and regular security updates to keep sensitive information safe. Businesses can also use data governance frameworks to comply with regulations like GDPR, HIPAA, and CCPA.

With data breaches and privacy concerns constantly in the spotlight, data modernization helps businesses protect their data and stay compliant. This provides the reassurance businesses need in a digital environment.

Future-ready data management: Some proven data modernization best practices

In a journey toward data management modernization, businesses need to approach it with careful planning and a clear strategy. Following best practices is important to ensure the transition to modern data systems goes smoothly and efficiently, setting businesses up for long-term success.

We’ve outlined some tried-and-true practices that organizations can leverage to improve data quality and transform data infrastructure to remain competitive in the age of data and AI.

1. Set defined objectives and goals

Before modernizing data infrastructure, having a well-defined objective keeps your team focused and serves as a roadmap throughout the data modernization process is important. It helps ensure that every step aligns with your ultimate vision, making tracking progress and measuring success easier once the initiative is complete. Begin with these objectives in mind for the data modernization roadmap:

• Are you looking to make data more accessible across your organization?

• Do you want to improve decision-making with better insights?

• Are you focused on ensuring full compliance with evolving regulations?

2. Analyze your current data infrastructure for future readiness

Start by conducting a detailed audit of your existing data systems. This step will help you identify inefficiencies, bottlenecks, and areas that need improvement. Take the time to determine where your current setup is falling short, whether it’s slow data processing, fragmented storage, or challenges with integrating new technologies.

Knowing these pain points helps you prioritize which areas need immediate attention and which can be addressed over time. By thoroughly understanding the limitations of your legacy systems, you’ll gain valuable insights into what’s holding you back.

3. Make data governance a top priority

Data governance should be a key focus of your data platform modernization efforts. This starts with setting clear, comprehensive policies and procedures that address data quality, security, and compliance. These guidelines ensure your data remains accurate, current, and secure, regardless of storage location or user interaction.

When every team member follows the established data governance and modernization policies, it helps prevent errors and mitigate risks. This ensures that data modernization efforts are effective and sustainable in the long run.

4. Support your modernization efforts with the right technologies

The success of data modernization journey hinges upon the selection of the right tools and technologies. Choose from a range of technologies, such as data integration platforms, to connect various systems and data lakes (AWS S3) for managing vast amounts of raw data. You can also opt for data warehouses (Snowflake, Databricks) for structured storage or advanced analytics tools to derive actionable insights.

One of the smartest moves for modern data management is embracing cloud platforms. Unlike traditional on-premises systems, cloud data modernization offers scalability and flexibility that can easily adapt to your business’s evolving needs. Migrating to the cloud will minimize the hassle of maintaining on-premises infrastructure and provide the ability to scale your data operations as your business grows.

Read more: Snowflake vs Databricks: 7 major differences to learn.

5. Invest in data visualization tools to derive more value

With all the data centralized in a modern data platform, it is important to make sense of it and uncover valuable patterns or trends that can shape your business’s future. Investing in the right BI and analytics tools , such as Tableau, Power BI, or Looker, that can transform complex data sets into easy-to-understand charts, graphs, and dashboards. These tools will help your organization quickly grasp what’s happening, identify opportunities, and track performance metrics in real time.

With the right insights at your fingertips, you can anticipate changes in the market, respond quickly to customer needs, and innovate faster than your competitors.

Further reading: What is Power BI used for and how it can benefit your business.

Let Confiz lead your data modernization journey

As data continues to grow in volume, variety, and speed, modernizing outdated and disconnected systems is crucial for businesses looking to stay competitive. Breaking down data silos, automating processes, and enhancing security through data modernization create a strong foundation for long-term success.

Selecting the right technology partner is essential for a smooth transition. At Confiz, we take a personalized approach to data platform modernization, aligning your data modernization strategy with your business goals. Our experts streamline the process, minimize disruptions, reduce costs, and provide upskilling support to help your team adapt to new technologies.

Let’s work together to build a future-ready strategy that supports innovation and growth. Reach out to us today at marketing@confiz.com to get started!