These days, the number of companies searching for effective ways to adapt to the changes in their company immediately, improve their effectiveness and efficiency, and enhance their competitiveness is increasing.

Those companies that can foresee possible things that could happen in their department comprehensively are closer to their goals compared to those who create decisions, detect errors, and make predictions according to the information they extract from a huge-sized data.

On the other hand, companies that store big data are usually extracted from different sources featuring various purposes and formats. What will happen to this? Well, the duplication of the results is possible. Not only that, issues regarding data security would be possible, and you will also be required to pay several licenses.

Aside from that, these differences cause companies to have a hard time analyzing the data efficiently and immediately. Thus, the data should become more uniform. Aside from that, the companies should get rid of duplicates and errors and store them properly. Storing the extracted data should be placed in either a data warehouse or a data lake.

The process of storing information is what we called integration. With the help of different methods, companies can monitor, track, and access a wide range of data that is stored in one location. This will help them to have better decisions.

One of the effective methods for this is data consolidation. Apart from that, you may also consider using data federation and data propagation. If we are going to opt for data consolidation, it covers both viewings of files consolidated as well as the replicated data.

The Importance of Data Consolidation

Companies will benefit from using data consolidation, especially if they are receiving a high amount of information regularly. Through using this process, you can make sure that you are using only accurate and high-quality data. Through this, you can treat and process the information with ease and conveniently.

One of the benefits of data consolidation is that it gets rid of the disparities before using the data. Through this, rest assured that your company will increase its analytical operations, improve its efficiency, as well as save more time and effort.

Data Consolidation – How Does it Work

In general, the process of consolidating data is composed of four different stages. Each stage will extract only the reliable information of data. These four stages include subsequent analysis, data warehouse destination, and ETL pipeline, and data sources. All these stages work by utilizing the business’ intelligence tools. On the other hand, data consolidation does not have a standard process. This means that you can use different methods, including open-source tools, cloud-sourced tools, or manual work.

The Challenge in Running a Business that Isn’t Using Data Consolidation Process

As mentioned, the economy these days made most companies find and construct their own methods to become more efficient, competitive, and meet their clients’ specific needs. In addition to that, companies that are looking at their customers, suppliers, and departments holistically have a greater advantage than those who don’t.

It cannot be denied that every aspect that composes a business requires and creates data. Different factors alter the capability of a company to offer only the highest-quality product and best service to their customers. These factors include information visibility, control, and flow. Companies may experience problems when one of the business’ parts start using a different method or software when it comes to data stores. This could result in companies having a hard time analyzing and accessing the data. Aside from difficulty, the process could also be costly. In some cases, various databases usually feature a lot of duplications.

Does Data Consolidation Worth the Companies?

One of the important factors that need to be considered towards data management and data integration processes is data consolidation. Through data consolidation, companies can access important information easily and quickly. When important information is stored in a single place, companies can increase their efficiency and productivity.

The consolidation of data also cuts down operational costs. Not only that, but it also works for facilitating compliance with the imposed data rules and regulations. You might be asking about the main benefit of adapting this process. The main thing you will love about data consolidation is that it enables you to analyze the data holistically. Through this process’s proper use, you can create decisions according to the extracted data and facts.

What Could be the Difficulties in Using Data Consolidation

As we mentioned a while ago, data consolidation is one of the basic yet most essential steps you can do to have an accurate and fast analysis of data. One of the benefits you can get from it is that it provides business intelligence that can lead to a better decision making process. But despite its advantages, there are some difficulties you may encounter while using data consolidation. These include the following:

  • One of the challenges that companies may experience when using the data consolidation process is that it requires more time. Various technical teams usually have their tasks depending on its complexity level that is being added to the whole process of consolidating data.
  • Aside from that, you may also notice that you have limited resources. It cannot be denied that only some of the IT teams have the technical knowledge like a data expert that is needed when doing the whole data consolidation process. For some companies, hiring or outsourcing a data scientist could be costly. Not only that, but you may also consider training your current workers. But take note that it requires more time and effort.

How Data Consolidation Differs from DMP or CRM?

If we are going to compare it with CRM or DMP, you can notice that data consolidation stands out. It increases your customer experience. Through this, you can build customer loyalty by giving them personalized experiences. Customer Data Platform CDP also works hand and hand with data consolidation in giving more effective customer journeys. A lot of CDP vendors can be seen. It focuses on behavioral data and acts as machine learning. It also data collects, which enables you to increase your customer engagement.

One of the creative things about this email marketing technology is that it provides you the best chance to improve your customer service, thus building customer loyalty.


We cannot deny the fact that if you are going to manage and achieve a profitable and efficient company, you need to look at it holistically. This means that you should pay close attention to every part of your business. If you have a bird’s eye view of your company, you can easily and conveniently create effective, profitable, and timely business decisions.

Vinod Janapala is Senior Product Marketing Manager at piHappiness – Customer Feedback App & Survey Software. piHappiness is a top customer feedback software designed to collect customer feedback on Web, iPad & Android tablets. Vinod is keen on such topics as marketing, SaaS challenges, and Personal Growth.

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