Data exchange is the process of transferring digital data from one medium or location to another. It’s a key concept in many aspects of technology, such as networking, telecommunications and computer systems.
The data that flows through these two-way information exchanges adds the companies of all sizes, providing companies with unique opportunities to monetize and the capacity to accelerate their growth. In the public sector, efficient exchanges can help agencies to better understand the needs of citizens and enhance service delivery.
Traditionally, three methods have been employed to transfer data between disparate systems and applications that include file transfer, direct database connection and remote procedure calls. These methods, however, require extensive knowledge of the databases that are operational and the applications that they are used with and are often complex and difficult to manage over time. They can also lead to problems with performance and security, making it better to look for alternatives.
To maximize the benefits of data exchanges, businesses should concentrate their efforts on four important considerations. These include ensuring the data shared is accurate and complete, as well as relevant to business needs, leveraging advanced analytical capabilities to gain meaningful insight, and developing an effective and secure data platform to support commercial activities. A holistic approach is required to create a platform that combines management, technical and governance capabilities.
Once the platform is in place it is time to conduct market research, determine target customer segments and create data-related products that add value. Additionally, organizations must ensure that they comply with data protection laws, and that data exchanges are effective smooth, reliable, and seamless.