An organization’s most valuable asset is its meticulously acquired data. Companies go to great lengths to collect and manage data; thus, they must ensure that it is safe and not misused. Moreover, correct use of the data is essential for the growth of the company.
This is where the importance of data governance comes in.
Data governance is the process by which companies can manage their data depending on the internal data policies and standards. Companies with an effective data governance process can ensure that the data is trustworthy and consistent. It helps in the management of data and makes it secure. It is the core component of the data management process.
Want to know more about data governance? Read below and find out how data governance can help manage data.
What is Data Governance?
Data governance combines standards, metrics, processes, policies, and roles that help organizations efficiently use their data to achieve their targets and goals. It also ensures the security of data for the organizations.
Primarily, it identifies the person in charge of the action, determines the act itself, the situation, and the methods that need to be used.
Why Is Data Governance Important?
Organizations that deal with big data should have an efficient data governance strategy. The data will be defined by the business drivers, which will help form the data governance plan.
Without the presence of a proper data governance strategy, there will be an increase in data inconsistencies. This can lead to the point of no resolution, which can be harmful for the organization.
Lack of data governance can also cause problems with regulatory compliance strategies. This would be unfavorable for companies that have to comply with the data protection and data privacy laws strictly.
Data errors and inconsistencies can create hindrances in decision-making, which can seriously impact the business. Data governance improves data quality, helps decrease data management costs, and increases access to critical data for the stakeholders.
If a company has a proper data governance plan in place, it will entail that their data is protected, usable and accessible. It further helps with data analytics, which is essential for improving operations support and making better business decisions.
In other words, organizations need to focus more on the governance of the data than on the data itself.
Data Governance Strategy Structure
Forming an effective data governance strategy is not an easy task. You will need a strong team that can ensure the smoothness of the process. While the team structure may be different for different organizations, a few key positions need to be present.
Data Manager — A data manager leads the framework design and implements the systems and policies. It is the job of the Data Manager to build the team. Some organizations may choose a Chief Data Officer for this role.
Data Governance Architect — A data governance architect will look after the implementation and designs.
Data Strategist — A data strategist chalks out the plan and implements the strategies accordingly.
Compliance Specialist — The compliance specialists ensure that the strategy is complying with regulatory standards.
Apart from this core team, other stakeholders in the process include the board of directors, operations, the CIO, IT management, finance executives, marketing, and sales. A company can develop a highly effective data governance strategy with proper contribution and effort from the team and stakeholders.
What are the Goals of Data Governance?
The Business Application Research Center states certain key goals that an organization should follow. They are:
- Form internal rules to use data
- Increase data value
- Reduce costs
- Minimize risks
- Ensure the company’s existence through optimization and risk management
- Better communication — internal and external
- Implement the compliance requirements
What are the Benefits of Data Governance?
By now, you’ve well understood how data governance can be beneficial to an organization. Here are some key points that highlight the benefits of having a data governance strategy in place in an organization.
- Uniform and consistent data at disposal facilitating decision making
- Improves data regulation compliances
- Businesses become more scalable and agile with clear data rules
- Can reuse data and processes, thus increasing efficiency
Overall, data governance will help change the way your business deals with its data.
Bottom Line
Data governance is an integral part of any organization and should be given primary importance. The focus should shift from just managing acquired data to leveraging this data for business scalability. It is also necessary to find out ways in which companies can keep the data safe.
There are several data governance tools and certifications which can help your organization get a competitive edge. With the effective implementation of data governance strategies, companies will form better decisions and increase their efficiency in the future.
