Internal Data: Integral Information within a Company's Information System

Internal Data encompasses information, facts, and data available from within a company's INFORMATION SYSTEM. Such data is normally not accessible by external parties without the company's express permission.

Internal data refers to information, facts, and data that originate within a company’s information system. These data points are inherently private and sensitive, necessitating strict access controls to prevent unauthorized use or dissemination. Internal data can encompass financial records, employee details, proprietary business processes, and more.

Types of Internal Data

Financial Data

Financial data includes all monetary transactions, balance sheets, income statements, and other financial performance metrics internal to the organization.

Employee Data

Employee data consists of personal employee information, payroll details, performance reviews, and other HR-related records.

Operational Data

Operational data covers internal processes, supply chain information, manufacturing workflows, and inventory management details.

Customer Data

Customer data includes internal records of customer interactions, purchase history, preferences, and feedback secured within the company’s CRM system.

Importance of Internal Data Security

Maintaining the security of internal data is crucial for several reasons:

• Data Privacy: Protects the personal information of employees and customers.
• Business Integrity: Safeguards proprietary business information and competitive advantage.
• Compliance: Ensures compliance with regulations such as GDPR, HIPAA, and others.

Historical Context

The concept of internal data management gained prominence with the advent of integrated information systems in the late 20th century. As businesses digitized their processes, ensuring the integrity and security of internal data became paramount.

Applicability in Modern Business

Internal data plays a critical role in various business functions:

• Decision Making: Utilized in business intelligence (BI) technologies to derive actionable insights.
• Strategic Planning: Aids in long-term strategic planning and management decision-making.
• Performance Monitoring: Enables ongoing tracking of business performance and identification of improvement areas.

Comparisons with External Data

Feature	Internal Data	External Data
Source	Originates within the organization	Collected from external sources
Accessibility	Limited to authorized internal users	Potentially available to a broader audience
Data Sensitivity	Highly sensitive and confidential	Generally less sensitive
Primary Use	Operational efficiency and internal insights	Market analysis and business development

Related Terms

• Data Governance: The set of policies, procedures, and standards governing internal data management.
• Data Warehousing: The process of storing large volumes of structured internal data for analytical purposes.
• Information System (IS): A coordinated set of protocols and components used to collect, store, and manage data within an organization.

FAQs

Is internal data the same as personal data?

Not necessarily. Personal data refers to information about individuals, whereas internal data is a broader term that includes company-specific non-personal information.

How is internal data protected within a company?

Companies implement various security measures like encryption, access controls, and firewalls to protect internal data.

Can internal data be shared with third parties?

Yes, but only with the company’s express permission and often under strict confidentiality agreements.

References

1. Harvard Business Review. “The Importance of Data Privacy.”
2. European Union. “General Data Protection Regulation.”
3. Information Systems Audit and Control Association (ISACA). “Internal Data Security Protocols.”

Summary

Internal data is a pivotal component in modern business operations, offering valuable insights while necessitating stringent security measures. By understanding and managing internal data effectively, organizations can protect their resources, enhance efficiency, and ensure compliance with regulatory standards.