Effects of Data Loss on Companies
Let us have a closer look at the effects of data loss on companies.
Data loss may seriously affect the company?s sales as it may render them incapable of communicating with their customers. This may be because of the unavailability of correspondence details of the customers which are nowadays stored on the computer since most of the communication takes place through emails. The emails may also contain contract details with a particular client, records of grievances etc.
The database of a company contains many extremely important details such as reports on sales, manufacturing processes, finance etc. Loss of these data, even for a small period of time, may stop the company from functioning during that particular period. Even the loss of some part of the data may cause major disruptions.
Most of the decisions made by a company are based on analysis of trends in different facets of its operation. For this, statistics regarding the same are of utmost importance and their loss may mean that incorrect decisions are taken depriving the company of profits.
Data loss will also pose many security related issues in organisations such as banks which have online service facilities. It may lead to the elimination of many records leaving the organisation helpless. Similar problems will be faced by insurance companies as well.
Other hassles caused by data loss are a waste of time as well as money resulting from either reproducing the data or attempting recovery of the same. Also, data recovery is not a process that will meet with success assuredly, hence more trouble might be in store for you, in case you are unable to recover the data.
To substantiate the above claim, consider a situation where the data exists in the form of hard copies and the data on the system is lost. Then the hard copies of the data will probably be few in number and hence will not be accessible to everyone who might need it. Also, attempting to feed the data onto these computers again would be possible only after the damage has been repaired which would again amount to company?s downtime.
Why Some Companies Cannot Survive Severe Data Loss
The effects of the data loss on companies can prove to be quite hazardous. If one is to refer to the facts and statistics pertaining to data loss, they might be able to notice the high probability of revenue loss or failure of businesses following the tragedy. Let us have a look at why some companies cannot survive data loss.
One important reason for the same is that most of the companies have no data backup policy in place. If the damage is severe, the data might be beyond any possible chance of recovery. This will render many companies totally helpless due to one of the reasons mentioned above.
To take another example, consider a survey carried out in the UK in May this year by . It was regarding the importance of payment cards. Most of the companies feared the loss of data regarding payment cards as according to them, it would threaten their reputation to a great extent and the resulting chaos will leave them with fewer chances of survival in today?s competitive market.
Then consider those companies which provide services and perform tasks on a daily basis. The loss of orders even for a day would cause a tremendous loss and also give rise to a feeling of distrust among their clients.
The Final Word
Those stated above are merely a few examples! The exact effect of data on a particular company will be best known only to the company?s management. So, it is always better to be prepared for the same and have a contingency plan in place. Even in case of a data loss, one must know a reliable company that could help them with data recovery at the earliest. All the Best!