We live in a data economy. The explosion of data and the ability to use that data to make more informed decisions have drastically changed the way we do business—for the better.

But many organizations have found that even though they have all the data they want, putting it together and determining exactly how to use it still proves challenging.

That's where data solutions come into play. But with so many options for different types of tools that manage, cleanse, transform, combine, and help you act on data, how do you know which one is right for your business? And what does each of those tools even do?

You've come to the right article.

Six Types of Data Solutions and What You Need to Know About Them

To better understand the various tools available to help your business unlock the power of its data, let's take a look at six types of data tools, including the purpose they serve and the benefits they offer.

1. Customer Data Platform (CDP)

What is it? According to the CDP Institute, "a Customer Data Platform is packaged software that creates a persistent, unified customer database that is accessible to other systems." Critically, a customer data platform not only offers a centralized place to house first-, second-, and third-party customer data but also makes it easy to take action based on that data.

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image of Stefan Koenig

Stefan Koenig is a co-founder and the COO of Hull, a customer data platform for B2B SaaS organizations.

LinkedIn: Stefan Koenig

Twitter: @koenigst