Reducing data waste and maximizing value in your business

Published: 25 March 2025

Data is one of the most powerful tools your business can use to drive growth and innovation. A common belief is that collecting any data is better than collecting no data, but without a clear strategy on how to collect data wisely, you risk experiencing inefficiencies, high storage costs and even contributing to a negative environmental impact. Instead of gathering data for the sake of it, your business should focus on collecting data with a purpose, meaning to collect only what's needed, making sense of it and putting it to use.

The hidden problem with data

All businesses generate enormous amounts of data every day, but unfortunately, not all of it is useful. Unstructured, outdated and redundant data takes up valuable space, slowing down decision-making and increasing operational costs. Without a proper strategy, your company will end up storing vast amounts of digital clutter, leading to data waste.

Then there's the environmental aspect to consider. Data centers require a huge amount of energy to store and manage data. The more unnecessary data is stored, the more energy is wasted, contributing to a growing digital carbon footprint. Managing the data wisely will help you avoid this!

How to set up a strategy for collecting data with a purpose

A well-thought-out data strategy ensures that your business collects only the information you need while making the most of it. Praveen Palaniswamy, CTO at Nytt IQ, walks you through how to do it:

1. Set clear goals

Before even starting to collect any data, you should ask: What do we actually need data for?  Whether it's to improve customer experiences, optimize the marketing strategy or enhance overall operations, having clear objectives will help prevent the collection of unnecessary data.

2. Focus on quality, not quantity

More data doesn't always mean better insights. Instead of hoarding massive amounts of information, focus on collecting high-quality, relevant data that truly adds value. This will make analysis easier and keep systems efficient.

3. Manage the data lifecycle

A good data management plan includes regularly reviewing, updating and deleting unnecessary information. Create automated data retention policies to help prevent outdated or redundant data from piling up. Not all data needs to be kept forever.

4. Use AI and automation for smarter processing

AI is great for sorting, analyzing and managing data efficiently. Instead of sifting through irrelevant information manually, make use of AI-powered tools to surface the most important insights and save time and resources.

5. Stay compliant and ethical

With growing concerns about data privacy, you must ensure that your business collects data transparently and ethically. Compliance with regulations like GDPR is crucial, and respecting user privacy builds trust among your customers.

Reducing data waste for a smarter, more sustainable future

The future of data isn't about collecting more, it's about ensuring quality and using it wisely. Adopting a thoughtful approach to data collection will give your business a competitive advantage. This is because a well-managed data strategy allows you to spend your time and resources on what truly matters, rather than spending them on collecting and storing data that will never see the light of day.