Running a business can feel like juggling endless streams of information. One minute, you’re tracking sales figures, and the next, you’re sifting through customer satisfaction scores.
To complicate things, all that data comes from various sources—spreadsheets, online platforms, and more—making it feel scattered and hard to manage. It’s easy to lose focus on what’s most important and challenging to turn data into actionable insights.
However, with a solid data source management system, all your data streams come together in one organized flow. Instead of feeling overwhelmed, you gain a clear view of the bigger picture, enabling you to make informed decisions that drive your business forward.
What are data sources?
In business, data sources provide information that is important for running operations smoothly and making strategic decisions. Common data sources include sales systems, customer databases, website analytics systems, file systems, and remote servers. While data source definitions may vary, they all encompass the systems that generate and store valuable data.
There are 2 main types of data sources: file data sources and machine data sources.
- File data sources are information stored in computer files you can open, read, and edit, like spreadsheets or text documents.
- Machine data sources are information automatically created by devices, software, or systems, such as data from equipment sensors.
Every data source has its own data source name (DSN) and needs a driver engine for your systems to access and use the information. For example, in a database, data is usually organized into tables. Other times, your business may use other objects, like file systems or web services, as secondary data sources.
The importance of data source management
Whether you’re dealing with multiple systems or just a few key data sources, managing them properly ensures your business runs smoothly and efficiently. Here’s how.
- Enhanced data handling efficiency: Well-managed data sources make finding and using the information you need easier, saving time and reducing stress.
- Fewer data silos: Proper management prevents data silos, where information gets stuck in one part of your business. This ensures team members in every department have access to the same up-to-date information.
- Better data-driven decision-making: With clear and organized data, you can make smart data-informed decisions based on real insights, not guesses.
- Boosted business growth: Effective data source management creates a foundation that allows your business to scale, stay competitive, and continuously improve.
Turning disorganized data into clear insights gives your business the tools to thrive and outpace the competition. So, while it’s tough to get data source management right, the long-term benefits make it more than worth it.
Exploring common business data sources
Every business collects and uses data, whether it’s customer information, sales figures, or website traffic. But the challenge is knowing where that data comes from and how to keep it organized. Let’s look at the most common data sources you’ll encounter and how they might fit into your daily operations.
File data sources
File data sources are the files you work with every day, like spreadsheets, documents, or PDFs. For example, your team might use spreadsheets to track monthly sales, or the Human Resources department might keep PDF files for employee forms. These file data sources typically live on employees’ computers or in a shared company drive.
Machine data sources
Machine data sources connect directly to a database or server, usually through software your business relies on. For instance, your customer relationship management (CRM) system might store records in a remote server that anyone in Sales or Customer Support can access. You interact with data from a machine data source whenever you access or update customer information within that system.
Secondary data sources
Secondary data sources come from outside your main systems and provide additional information to help guide your business decisions. These can include market research reports, industry surveys, or competitor data. For example, if you’re planning a new product, you might download a market analysis report from a secondary data source to see what’s already out there.
Effective ways to access most data sources
There are several ways to access and pull data from its sources, but the specifics will depend on the system you’re using. Here are some of the most common methods your business might use.
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Hypertext Transfer Protocol (HTTP)
Hypertext Transfer Protocol (HTTP) is the standard method for accessing data on the web. When you visit a website or pull data from an online device, you use HTTP. For example, if your business collects customer reviews from a third-party website, you’re likely using HTTP to pull that data into your system.
Application programming interfaces
Application programming interfaces (APIs) are like bridges that allow 2 systems to talk to each other. They’re commonly used to access data from different applications. For example, if you needed to pull data from a third-party tool like a payment processor or a social media platform, you would use an API to get that data.
Database queries
If you’re accessing data stored in a database, you’ll likely use Structured Query Language (SQL) to get the specific information you need. This is a powerful way to ask a database to give you specific data sets, such as inventory levels or sales reports. SQL queries allow you to filter, sort, and organize data easily.
File transfer protocol
File Transfer Protocol (FTP) transfers large files between computers or servers. If your business needs to move a lot of data, like backups or media files, from one server to another, FTP simplifies this process. It’s especially useful for transferring files from a remote server location.
Cloud data platforms
Many businesses store their data in the cloud, which makes it easy to access from anywhere. Cloud data platforms like Amazon Web Services allow you to store, access, and manage large amounts of data without physical servers. This is great for businesses with teams in different locations or those that need to scale up quickly.
Direct file access
Sometimes, the easiest way to access data is through direct file access. This means opening a file directly from your computer, shared company drive, or a local server. For example, your team might store important documents, like Excel spreadsheets or PDF reports, in a shared folder everyone can access.
How to integrate data sources for a unified view
Integrating different data sources can help create a unified view of your business. This streamlines your operations and allows you to make better decisions based on all available information. Here’s a step-by-step guide to help you get started.
Step #1: Identify key data sources
Unless you use a single data source, start by listing all the places where your business data lives. This might include:
- Spreadsheets
- Cloud databases
- CRM systems
- Sales enablement software
- Email marketing platforms
- Website analytics systems
- Local file folders
Think about which sources give you the most valuable insights and how they might connect. For example, you might want to link your CRM system to email marketing software to track customer engagement.
Step #2: Establish a data integration strategy
Using what you learned in the previous step, create a plan for integrating your data sources. Set clear goals for what you want to achieve, such as improving data flow or gaining better customer insights.
Decide which sources to tackle first based on importance and ease of integration. Then, decide how frequently your data will need updates based on its use case. Some information, like sales data, changes frequently and requires real-time updates, while other information might be OK with daily or weekly updates.
Then, assign responsibilities to team members and create a timeline for the project. Don’t forget to plan for how you’ll measure success.
Step #3: Create a unified data model
Sketch a map showing how all your diverse types of data relate to each other. For instance, you might map how customer information from your CRM connects to purchase history from your sales system. This model ensures you combine information logically and helps everyone understand how data flows through your business.
Step #4: Choose integration tools and technologies
Select the right tools to link your data sources. These might include APIs, cloud platforms, or extract, transform, load (ETL) tools.
Consider the specific needs of your business when choosing these tools. For example, an API might be the best choice if you need real-time data updates. If you’re dealing with large data sets that require periodic updates, an ETL tool could work better.
Step #5: Implement data cleaning and standardization
To clean and standardize your data effectively, you’ll need to:
- Identify errors and duplicates: Run a thorough audit of your data to identify any mistakes, missing information, and duplicate records. Use tools like database cleaners in your software to flag inconsistencies.
- Correct and update data: Fix any errors, update outdated information, and remove duplicates. For example, ensure customer names, addresses, and product codes are accurate across your systems.
- Set standard formats: Establish consistent formats for key data fields like dates, phone numbers, and addresses. For instance, ensure all dates follow the same format, such as YYYY/MM/DD.
Afterward, set up regular checks to keep everything in order. Consider automating processes like data validation to catch issues early and prevent new errors from piling up.
Step #6: Set up your data governance plan
Create a clear data governance plan to ensure your team manages data consistently. This includes setting rules for collecting, storing, and accessing each data type.
To create this plan, you will need to:
- Establish clear guidelines for data quality.
- Choose who’s in charge of data in your company.
- Make rules for how to enter and update data.
- Decide who can see and use different types of data.
- Create a plan for fixing data errors and inconsistencies.
- Enact measures for data security, like encryption and user access controls.
Once you establish these guidelines, train your team on the rules and processes for managing data. Then, provide ongoing support and refresher courses to help maintain data quality and security across the company.
Step #7: Put your integration plan into action
Now that your data model, tools, and governance plan are ready, it’s time to integrate your data sources. Begin by connecting your most important systems first, ensuring they work together smoothly before moving on to the next. Stick to the timeline you created and follow the steps outlined in your plan.
As you work through the integration, monitor how data flows between systems. Fix any issues as they arise and ensure everything is syncing correctly, whether in real time or through scheduled updates. Keep your team in the loop and adjust the plan if needed.
Connect the data blocks for a holistic business view
Data is everywhere in your business. But if it’s scattered across different systems and files, it’s not doing you much good. Integrating your data sources is like putting all the pieces of a puzzle together. Suddenly, you see the big picture, and things start to make sense. So, don’t let valuable data go to waste. Embrace the power of integrated data, and watch as it lights the path to efficiency, profitability, and growth.