Are you worried about data sprawl? Many B2B organizations are, as they manage larger datasets across multiple platforms and applications, increasingly concerned about it.
Data sprawl is the uncontrolled proliferation of data across various storage systems, devices, platforms, and applications. In B2B organizations, it occurs when customer data, supplier records, financial data, and other business-critical information are stored in multiple, often unconnected, systems. The growing use of cloud platforms, collaboration tools, and remote work environments exacerbates this issue.
Unlike consumer environments, where data is often limited to personal files, photos, and app usage, B2B companies handle vast amounts of data from multiple stakeholders, including customers, partners, suppliers, and employees. The data volume, velocity, and variety increase can lead to significant challenges in managing, securing, and effectively utilizing this information.
This proliferation of data increases security vulnerabilities, compliance risks, and operational inefficiencies. However, with proactive data governance, centralized storage solutions, and regular audits, companies can reduce data sprawl and gain better control over their information assets.
Implementing best practices can improve security and compliance and enhance business agility and decision-making capabilities.
Here’s how.
Causes of Data Sprawl in B2B Organizations
Use of Multiple Software Tools
Modern B2B companies rely on a broad suite of software applications for CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), marketing automation, HR, and more. These systems often operate in silos, creating isolated data pockets.
Cloud and SaaS Adoption
Cloud-based software and Software-as-a-Service (SaaS) platforms are essential for agility and remote work. However, as each platform stores its data, maintaining a single source of truth becomes challenging.
Remote and Hybrid Work Models
Remote work has increased the use of personal devices, home networks, and a broader range of collaboration tools, such as Slack, Microsoft Teams, and Google Workspace. Each tool stores chat logs, shared files, and notes, contributing to data sprawl.
Data Duplication and Shadow IT
Employees often create local copies of files, download spreadsheets, and store data on personal devices or unsanctioned third-party applications. This unsupervised data replication adds to the volume and complexity of data sprawl.
Data Integration Challenges
Data formats, legacy systems, and interoperability issues prevent full synchronization even when integration solutions exist. As a result, data is copied, extracted, and stored in temporary locations, creating further sprawl.
Acquisitions and Mergers
B2B companies involved in mergers or acquisitions must integrate legacy data systems. Data from acquired companies is often left in its original format and storage location, creating yet another source of unstructured, unorganized data.
Risks of Data Sprawl in B2B Organizations
Security Vulnerabilities
Dispersed data is more complex to track and protect. Each data instance stored on cloud drives, personal devices, or third-party apps becomes a potential cyberattack access point. Without visibility into where sensitive information resides, companies risk breaches and non-compliance.
Compliance and Regulatory Challenges
B2B organizations often use strict regulatory frameworks like GDPR, HIPAA, and industry-specific standards. Ensuring compliance requires tracking, managing, and deleting data as needed. Due to its unstructured nature, data sprawl increases the risk of non-compliance.
Operational Inefficiencies
With data scattered across multiple platforms, employees spend more time searching for the needed information. This inefficiency leads to wasted productivity, duplicated work, and delays in decision-making.
Data Quality Issues
Duplicate, outdated, or conflicting data sources create confusion. Poor data quality affects customer relationship management (CRM) systems, sales pipelines, and marketing analytics, ultimately impacting revenue and customer satisfaction.
Increased Storage Costs
Storing multiple versions of files across different platforms and devices increases storage costs. Over time, the cost of storing unnecessary or redundant data can be significant, especially with cloud storage services that charge for data usage.
Data Loss and Recovery Challenges
When data is stored haphazardly, creating effective backup and recovery strategies becomes more challenging. Restoring disparate data sources is also more complex and time-consuming in the event of a disaster or cyberattack.
How to Manage Data Sprawl in B2B Companies
Centralize Data Management
Adopt a single platform or data warehouse where all key business information can be aggregated. By centralizing data in a unified system, B2B companies can maintain a single source of truth and reduce the risk of data duplication.
Implement Data Governance Policies
Develop and enforce policies that outline how data is stored, shared, and accessed. Clear policies ensure employees understand their responsibilities for preventing sprawl. Companies can also assign data stewards to ensure compliance.
Use Data Integration and Automation Tools
Integration platforms (like iPaaS) can automate data transfer between different software systems. This reduces the need for manual data copying and prevents the creation of fragmented data stores.
Conduct Regular Data Audits
Schedule periodic reviews to identify redundant, obsolete, or trivial (ROT) data. Audits enable companies to clean up unnecessary files and streamline storage needs, improving security and compliance.
Deploy Identity and Access Management (IAM) Systems
IAM solutions ensure that only authorized personnel have access to specific datasets. Role-based access control (RBAC) restricts data access and minimizes the risk of employees creating unauthorized copies of files.
Enhance Data Security Practices
Encrypt data at rest and in transit to protect it from unauthorized access. Companies should also conduct penetration testing and security audits to identify vulnerabilities in their storage architecture.
Monitor Shadow IT and Bring-Your-Own-Device (BYOD) Risks
Implement mobile device management (MDM) solutions and shadow IT monitoring tools to track the usage of personal devices and unsanctioned applications. This reduces the likelihood of sensitive data being stored on unmonitored platforms.
Use Cloud Governance Tools
Tools like cloud access security brokers (CASBs) provide oversight into the use of cloud platforms. They also enforce security policies, block unauthorized storage, and track where data is shared.
Data Lifecycle Management (DLM)
Establish rules for data retention, archiving, and deletion. By controlling the data lifecycle, companies can reduce the buildup of old, irrelevant files contributing to sprawl.
The Unique Challenges of Data Sprawl in B2B Companies
- Diverse Data Sources: B2B companies must manage customer, supplier, and partner data, which is more complex than the data streams typically found in B2C businesses.
- Larger Data Volumes: B2B transactions generate more data due to the complexity of customer engagements, service contracts, and multi-stage sales processes.
- Compliance Burden: Unlike B2C companies, B2B firms are subject to stringent contract terms, vendor data protection agreements, and multiple regulatory frameworks.
- Interoperability Requirements: B2B companies must exchange data with suppliers, vendors, and other third-party entities, requiring seamless and secure data-sharing protocols.
- Longer Data Retention: Many B2B contracts and service agreements require companies to maintain access to old records for audit purposes.
We can help you understand and manage your data sprawl. Contact us today!
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