Why Companies and Businesses Should Make Use of Data Hubs

Being able to efficiently store data and information these days is very important especially in companies and businesses. How a company stored data can determine how efficiently it can function especially when data has to be accessed and process. With the advancement of technology, storing data is no longer something that is done with file cabinets and different labeled folders. These days, the storage of data is something done digitally and stored in the system of the company. Companies can make use of data warehouses and data silos to store data but with the information getting a lot more complicated, a company must make use of something else to make things a lot easier, something like a Data Hub.

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data hub

Data hubs are considered to be a very important component when it comes to information architecture. However, the term is actually something quite diverse and in that it can be associated with different meanings. The term “hub” alone can have different meanings depending on the person which means that the whole term “data hub” can also be interpreted in different ways. This means that the definition of data hub is something quite generic. One definition of data hub refers to it as a database which composes of data that is taken from a variety of sources and taken to a variety of destinations. Another definition considers the data hub as something set between the data source and the destination of the data. But enough of what a Data Hub really is, what we are going to understand is why companies and business should make use of it.

When there is data in the company that will need to be shared and exchanged often, the more important a data hub is in the system of the company. With this function in mind, there are actually other approaches that a company can take which is even simpler. The approach of a point to point interface is something that is simpler than a data hub and can easily move data from one place to another. However, data hubs have a lot more to offer. In addition making use of a point to point approach can have certain hiccups such as:

  • Data is often replicated as it is being moved around which is something that isn’t really needed.
  • Point to point approaches have low quality controls and governance is only at a minimum.
  • Modifying them is quite difficult.
  • There is a lack of documentation as well as proper understanding.
  • The approach actually promotes the data being coupled and fused into something big making things very challenging to improve as the business changes over time.
  • Point to point relies a lot on the paired application to be able to integrate and transact the data instead of doing it independently.

With those in mind, you can understand why despite how simple point to point interactions are, they are not that favorable. This is what makes Data Hubs a far more viable choice for companies to be able to manage all of its data in the system.

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