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What is the Difference Between Data Engineering and Data Management?

What-is-the-Difference-Between-Data-Engineering-and-Data-Management

Within the domain of Big Data, the roles and functions under data engineering and data management are most of the time mixed up resulting in puzzlement to many people. Although these roles share data gathering as the common aspect, different skill sets and different educational backgrounds are required for them.  This article aims to simplify the distinctions between these two domains and elucidate their respective professional responsibilities.

Understanding Both the Data Engineering and Data Management

Data Engineering

Businesses produce enormous volumes of data containing such things as feedback from customers’ sales performance or stock prices, all of which significantly impact strategies for operations. Consequently, the task of making meaning from such data is not small. Therefore, many businesses turn to data engineering.
Data engineering also includes the creation and deployment of systems that are responsible for the collection and analysis of raw data from disparate sources and formats. Indeed, the users may gain actionable insights from this data, in which business entities can increase their competitiveness and performance.

Data Management

Data management encompasses the activities of ingesting, processing, securing, and storing an organization’s data, which is then utilized for strategic decision-making to enhance business outcomes.

Recent advancements in hybrid cloud, artificial intelligence, the Internet of Things (IoT), and edge computing have precipitated the exponential growth of big data, introducing greater complexity for enterprises to navigate. Consequently, establishing a robust data management discipline within organizations has become increasingly imperative to address challenges such as data silos, security vulnerabilities, and decision-making bottlenecks.

Teams confront these challenges by implementing various data management solutions aiming towards cleansing, unifying, and securing data. This facilitates the extraction of insights through dashboards and other data visualization tools, enabling informed decision-making by organizational leaders. Furthermore, it empowers data science teams to explore complex inquiries, leveraging advanced analytical capabilities like machine learning for proof-of-concept initiatives. Successful outcomes from these endeavors prompt collaboration with relevant teams to scale the insights across the organization through automation practices.

Also Read: Crucial Role of CIOs in Data Management

Importance of Data Engineering Vs Data Management

Why Data Engineering Matters?

Data engineering is important as it helps any company handle large amounts of heterogeneous data to answer critical business questions. It enables effective, fast, and safe inspection of the data for consumers like analysts, data scientists, and executives.

Data analysis becomes difficult because of the heterogeneity of management technologies and storage structures used for data. Such heterogeneity is the opposite of the assumption made by the analytic tools which assume identical data management technologies and structures. This incompatibility causes many times problems with data analysis to “answer questions about business performance in an effective and timely manner.”

Consider, for example, the number of data about a brand, which has information about its customers:

  • There is one system that contains billing and shipping information.
  • Another system preserves order history.
  • Other systems store customer support, behavioral data, and third-party information.
  • Though providing a complete view of a customer, the above heterogeneous datasets are independent, creating troubles with answers to relevant business questions, for example, the types of orders giving the highest customer service cost.

Data engineering helps solve this problem by consolidating the above datasets; it enables fast and efficient retrieval of answers to the relevant business questions.

Responsibilities of Data Engineer Vs Data Manager
Data Engineer Data Manager
Designing and building data pipelines Developing and implementing data management policies and procedures
Building and maintaining data warehouses Ensuring data security and compliance
Developing and maintaining ETL processes Managing data acquisition and integration
Ensuring data quality and reliability Overseeing data storage and retrieval
Developing and maintaining data models Ensuring data quality and reliability
Optimizing data storage and retrieval Developing and maintaining data dictionaries and metadata
Selecting and integrating appropriate tools and technologies Collaborating with stakeholders to understand data needs
Troubleshooting and resolving data-related issues Managing data access and sharing
Ensuring data security and compliance Ensuring data privacy and confidentiality

When to Utilize Data Engineers and Data Managers

Businesses require the expertise of both data engineers and data managers depending on their specific objectives:

Data Engineer A business will need a data engineer when they focus on building and maintaining the infrastructure to handle their data. This involves tasks such as:

  • Designing and building data pipelines to move data from various sources.
  • Setting up data storage systems like data warehouses.
  • Creating tools and processes to clean and transform data.

Data Manager Conversely, a data manager is essential when the focus shifts to governing and overseeing the data itself. This includes responsibilities such as:

  • Establishing data governance policies and procedures.
  • Ensuring data quality and accuracy.
  • Managing access controls and security for data.
  • Reporting on data usage and compliance.

Data Governance as a Framework for Data Engineering and Data Management

Data governance is the umbrella under which data engineering and data management would operate. It lays down the general framework and policies and processes for handling data throughout its lifecycle within any organization. How it relates to each is as follows:

Data Engineering:

Data governance becomes the blueprint by which data engineers construct and maintain the data infrastructure. It includes the following:

  • Standardization: Standardization of data formats, naming conventions, and quality checks. Data engineers develop these standards when developing data pipelines and storage systems.
  • Security: Security of data access and protection of confidential data. Data engineers embed these controls into the data infrastructure.
  • Compliance: Compliance with data privacy regulations. Data engineers develop systems that are compliant with such regulations.
Data Management:

Data governance lays down the rules with which data managers would enforce. It includes the following:

  • Data Quality: Expectations for data quality are set. Data managers develop processes to ensure the accuracy and consistency of data.
  • Data Ownership: Defining data ownership across the organization. Data managers work with data owners to ensure proper stewardship of data.
  • Data Lineage: Data origination and transformations are tracked. Data managers develop tools and processes to preserve data lineage to facilitate transparency and accountability in data management practices.

Also Read: A Collaborative Approach to Building a Data Governance Culture

Tools and Software Utilized

Data Engineer

Data engineers employ a range of tools and software to design, construct, and maintain data pipelines and warehouses. Among the most frequently utilized tools and software are:

  • SQL and NoSQL databases (MySQL, PostgreSQL, MongoDB, etc.)
  • Big Data technologies (Hadoop, Spark, etc.)
  • Cloud platforms (AWS, Azure, etc.)
  • ETL tools (Talend, Informatica, etc.)
  • Data modeling tools (ER/Studio, Enterprise Architect, etc.)
  • Version control systems (Git, SVN, etc.)
Data Manager

Data managers utilize various tools and software to manage and secure the organization’s data assets effectively. Some of the most commonly used tools and software include:

  • Data governance frameworks (GDPR, CCPA, etc.)
  • Data management platforms (Collibra, Informatica, etc.)
  • Data visualization tools (Tableau, Power BI, etc.)
  • Project management tools (Asana, Trello, etc.)
  • Collaboration tools (Slack, Microsoft Teams, etc.)
  • Data security tools (firewalls, encryption, etc.)

Future Outlook

Future Trends in Data Management
  1. Efficiency & FinOps: Data teams focus on efficiency and cost reduction, integrating into Financial Operations (FinOps) initiatives to optimize resources and automate processes.
  2. Data Activation / Reverse ETL: Reverse ETL bypasses BI dashboards, directly pushing data into third-party systems for immediate utilization, becoming integral to the modern data stack.
  3. Analytics Engineering: The rise of Analytics Engineers bridges the gap between business and technical teams, ensuring data models meet business needs and adhere to software engineering best practices.
  4. MLOps: MLOps streamlines the deployment and maintenance of machine learning models in production, enhancing data science practices.
  5. Active Metadata: Active metadata drives faster data management deployments, facilitating real-time communications between systems and automating compliance measures.
  6. Data Governance: Data governance frameworks leverage active metadata to enhance data modeling, stewardship, and compliance, becoming dynamic forces in analytics.
  7. Data as a Product: Treating data assets as products ensures usability and relevance throughout the product life cycle, fostering discoverability and security.
Future Trends in Data Engineering
  1. Enhanced Cybersecurity Measures: Data engineering will prioritize data security, implementing stronger encryption and access controls to mitigate cyber threats.
  2. Focus on Data Governance: Data engineers will integrate robust governance frameworks to ensure compliance with privacy regulations and ethical data use, building trust with stakeholders.
  3. AI Integration: Artificial intelligence will assist data engineers by automating tasks like data ingestion and pipeline maintenance, allowing engineers to focus on critical issues.
  4. Adoption of Data Contracts: Data contracts will revolutionize data management by establishing clear agreements between producers and consumers, enhancing transparency and collaboration.
  5. Real-time Data Streaming: Event stream processing, facilitated by frameworks like Apache Kafka, will enable businesses to process data in real time, crucial for timely decision-making and personalized experiences.

Conclusion

The two fields, data engineering and data management are both highly pertinent to organizations since they deal with data albeit with the difference being that the former’s focus is on the workflow and the latter’s focus is on effective management.

In general, data engineering is concerned with the creation, operation, and maintenance of systems responsible for data storage, processing, and acquisition. This involves building pipelines for arrival, change, and storage of data which should be readily accessible by other datasets to be analyzed.

Contrastingly, data management is among the relatively proficient set of roles including a broad scope of activities that range from the formulation of plans and systems for data acquisition, storage, and retrieval. This could incorporate data management, quality control, and adherence to company goals and regulations, which is purposeful for the company. Briefly, although data engineering deals with the technical side of data processing and storage, data management refers to the overall governance and strategic use of data in an organization.

FAQs

1. What are the core differences between data engineering and data management?

Data engineering focuses mainly on the design, construction, and maintaining of systems responsible for the management and processing of data—mechanisms for ingestion and transformation of data. Data management, on the other hand, deals with the whole gamut of activities, covering planning, development, and governance of systems for data acquisition, storage, and retrieval, focusing on governance, quality management, and strategic data use within the organization.

2. Why is the difference between data engineering and data management important to understand?

The nuances between the two roles are an essential prerequisite for a data management or data engineering professional desirous of going into this profession. It helps individuals match their skills and expertise with specific requirements of each role and make informed career decisions, effectively contributing to organizational data strategies.

3. What kinds of skill sets and education backgrounds are required to perform data engineering and data management jobs?

In the case of data engineering jobs, typically strong technical backgrounds in technical skills such as programming, database management, and data processing, often backed with a computer science, engineering, or other-related background. In the case of data management jobs, it seems to require a blend of technical proficiency and business acumen, where individuals often have a degree in information systems, business administration, or data analytics.

4. How will data engineering and data management lead to organizational success?

Both data engineering and data management are extremely crucial in ensuring an organization harnesses its full potential from its data assets. Data engineering helps in generating efficient data processing and storage that enables an organization to derive actionable insights from its data. Data management helps achieve data quality, governance, and compliance to support informed decisions and strategic initiatives across the organization.

5. What are the emerging trends in the emergence of data engineering and data management?

Emerging trends in data engineering and data management focus on data security and cybersecurity measures, increased emphasis on data governance and ethical considerations, the integration of artificial intelligence to automate tasks, the use of data contracts for transparency and collaboration, and the rise of real-time data streaming for timely decision-making and personalized experiences. These trends are shaping the future of data management and engineering practices, driving innovation and efficiency in the field.

[To share your insights with us as part of editorial or sponsored content, please write to sghosh@martechseries.com]

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