What are the benefits of a data classification scheme?

2 Optimized data storage and performance

Another benefit of a data classification scheme is that it can help you optimize your data storage and performance by allocating the appropriate resources and infrastructure to different data categories. For example, you can use cloud-based or on-premise solutions to store your data depending on its availability, reliability, and scalability needs. You can also use data compression, deduplication, or archiving techniques to reduce the size and cost of your data storage. By classifying your data, you can improve your data quality, accessibility, and efficiency, and avoid wasting time, money, or space on unnecessary or redundant data.

3 Enhanced data governance and compliance

A third benefit of a data classification scheme is that it can support your data governance and compliance efforts by establishing clear rules and responsibilities for your data management. For example, you can use data classification to define who can access, modify, or share your data, and for what purposes. You can also use data classification to identify and adhere to the relevant laws and standards that apply to your data, such as the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), or the Payment Card Industry Data Security Standard (PCI DSS). By classifying your data, you can demonstrate your accountability, transparency, and ethical practices to your stakeholders, customers, and regulators.

4 Increased data value and insight

A final benefit of a data classification scheme is that it can increase your data value and insight by enabling you to leverage your data for strategic decision making and innovation. For example, you can use data classification to prioritize and analyze your most important and relevant data, such as customer behavior, market trends, or operational performance. You can also use data classification to integrate and share your data across different departments, functions, or platforms, and create a unified and consistent data view. By classifying your data, you can unlock its potential, generate new knowledge, and create competitive advantages for your organization.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?