Flevy Management Insights Q&A
How is the rise of edge computing impacting data management strategies?
     David Tang    |    Data Management


This article provides a detailed response to: How is the rise of edge computing impacting data management strategies? For a comprehensive understanding of Data Management, we also include relevant case studies for further reading and links to Data Management best practice resources.

TLDR The rise of edge computing is transforming Data Management Strategies by decentralizing data processing, necessitating advanced analytics near data sources, reevaluating storage strategies, increasing data security and privacy needs, and requiring Strategic Planning for effective adoption and integration with Digital Transformation goals.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Decentralized Data Processing mean?
What does Data Lifecycle Management mean?
What does Cybersecurity in Edge Computing mean?
What does Strategic Planning for Digital Transformation mean?


The rise of edge computing is significantly reshaping data management strategies across industries. This transformation is driven by the need for faster processing, reduced latency, and improved data security. As organizations increasingly adopt Internet of Things (IoT) devices and mobile computing, the traditional centralized data processing model is being challenged. Edge computing brings data processing closer to the source of data generation, thereby offering new opportunities and challenges for data management.

Impact on Data Processing and Storage

Edge computing decentralizes data processing, allowing for real-time data analysis at or near the source of data generation. This shift significantly impacts data management strategies, particularly in how data is processed and stored. Organizations are now tasked with managing a distributed network of edge devices, each capable of processing and storing data. This requires a robust data management framework that can support data synchronization, ensure data integrity, and facilitate efficient data transfer between edge devices and central data centers. For instance, a retail chain implementing edge computing for in-store customer behavior tracking must effectively manage data across all its stores to gain meaningful insights.

Moreover, the need for real-time data processing at the edge necessitates advanced analytics and artificial intelligence (AI) capabilities to be deployed closer to data sources. This approach enables faster decision-making and reduces the bandwidth needed to transmit large volumes of data to a centralized location. However, it also introduces complexity in managing and updating these analytics models across numerous edge devices.

Additionally, edge computing demands a reevaluation of data storage strategies. While not all data generated at the edge will be valuable over the long term, determining which data to store locally, which to send to the cloud or central data centers, and which to discard is a critical challenge. Organizations must develop data lifecycle management policies that address these needs while optimizing storage costs and ensuring compliance with data privacy regulations.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Enhancing Data Security and Privacy

Edge computing introduces new dimensions to data security and privacy concerns. By processing data locally, organizations can reduce the exposure of sensitive information to external networks, thereby mitigating the risk of data breaches. However, this also means that each edge device becomes a potential target for cyberattacks. As such, organizations must implement robust security measures at the edge, including encryption, access controls, and regular security updates. For example, a healthcare provider using edge computing for patient monitoring must ensure that patient data is securely processed and stored on edge devices to comply with health information privacy regulations.

Data privacy is another critical consideration. With data being processed closer to its source, organizations have a greater responsibility to ensure that personal data is handled in accordance with local data protection laws. This may involve implementing data anonymization techniques at the edge or ensuring that data is processed in a manner that complies with the General Data Protection Regulation (GDPR) in Europe or other relevant regulations.

Furthermore, the distributed nature of edge computing complicates the task of monitoring and managing data security across numerous devices. Organizations must adopt centralized security management solutions that can scale across their edge infrastructure, providing visibility and control over every device.

Strategic Planning for Edge Computing Adoption

Adopting edge computing requires careful Strategic Planning to align with an organization's overall Digital Transformation goals. This involves evaluating the potential benefits of edge computing against its complexities and costs. Organizations must consider factors such as the types of applications that will run on edge devices, the data processing and storage capabilities needed, and the integration with existing IT infrastructure.

Implementing a successful edge computing strategy also requires a skilled workforce capable of managing advanced technologies at the edge. This may involve training existing staff or hiring new talent with expertise in IoT, AI, and cybersecurity. For instance, a manufacturing company deploying edge computing for real-time equipment monitoring will need IT professionals skilled in managing IoT devices and data analytics.

Finally, organizations must establish partnerships with technology providers that offer edge computing solutions. These partnerships can provide access to the latest technologies, as well as support and expertise in deploying and managing edge computing infrastructure. Selecting the right technology partners is crucial for ensuring the scalability, security, and efficiency of edge computing deployments.

In conclusion, the rise of edge computing is driving significant changes in data management strategies. Organizations must navigate the complexities of data processing and storage at the edge, enhance data security and privacy, and strategically plan for the adoption of edge computing. By addressing these challenges, organizations can leverage edge computing to gain competitive advantages through improved operational efficiency, faster decision-making, and enhanced customer experiences.

Best Practices in Data Management

Here are best practices relevant to Data Management from the Flevy Marketplace. View all our Data Management materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Data Management

Data Management Case Studies

For a practical understanding of Data Management, take a look at these case studies.

Data Management Enhancement for D2C Apparel Brand

Scenario: The company is a direct-to-consumer (D2C) apparel brand that has seen a rapid expansion of its online customer base.

Read Full Case Study

Master Data Management Enhancement in Luxury Retail

Scenario: The organization in question operates within the luxury retail sector, facing the challenge of inconsistent and siloed data across its global brand portfolio.

Read Full Case Study

Data Management Framework for Mining Corporation in North America

Scenario: A multinational mining firm is grappling with data inconsistencies and inefficiencies across its international operations.

Read Full Case Study

Master Data Management in Luxury Retail

Scenario: The organization is a prominent player in the luxury retail sector, facing challenges in harmonizing product information across multiple channels.

Read Full Case Study

Data Management Overhaul for Telecom Operator

Scenario: The organization is a mid-sized telecom operator in North America grappling with legacy systems that impede the flow of actionable data.

Read Full Case Study

Master Data Management Strategy for Luxury Retail in Competitive Market

Scenario: The organization is a high-end luxury retailer facing challenges in synchronizing its product information across multiple channels.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

    Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I "

    – Nishi Singh, Strategist and MD at NSP Consultants
  •  
    "[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it give me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

    – Royston Knowles, Executive with 50+ Years of Board Level Experience
  •  
    "I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

    – Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory
  •  
    "I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

    – Trevor Booth, Partner, Fast Forward Consulting
  •  
    "As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

    – Jim Schoen, Principal at FRC Group
  •  
    "Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

    – M. E., Chief Commercial Officer, International Logistics Service Provider
  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

    – Michael Evans, Managing Director at Newport LLC



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.