Business is all about data. If a business has the relevant data, it can function effectively. All organizations need a plan to use the data consistently throughout the organizations.
This is where data governance comes into play. According to a report made by the state of Data management in 2019, Data Governance is one of the pillar strategies of top organizations.
Since the new technology trends made their place in the market, with a little push with data catalog software from the organization, the data governance trend is not going anywhere soon.
What Is Data Governance?
Data governance is nothing more than a set of simple rules and regulations that ensure high-quality data are encapsulated into the organizations.
According to the Data Governance Institute, it is a practicable and actionable process or framework. It helps the organization collect data from all sources and then arrange it in such a way that it gives meaningful insight to the organization’s decision-making bodies.
Data Governance has proved that an organization doesn’t just need a system to manage data; rather, they need a whole set of rules and regulations.
Why Is Data Governance Important?
The lack of necessary data governance in the organization means one thing: the presence of poor quality data in the organization. The poor quality data manifest itself in many definitions and hence, affects the efficiency of business operations.
The poor quality of data can be in the following forms:
- Missing fields.
- Duplicate data.
- Data faux pas.
However, if your organization can implement data governance, here is how it can benefit.
1. Saves Money
Simply put, with effective data governance, business efficiency t is boosted significantly. Duplicate data means wastage of efforts. The integration of data governance in your business reduces the errors in your database. It gives your business a secure database to work with and saves time.
In fact, data governance forces the business to clearly define the core data and the rules that govern the core data regulations. This practice helps the organization bring everyone on the same page and define the same core data for everyone.
2. Reduce The Risk Of Bad Data
Lack of data governance invites unnecessary security concerns. These security concerns can be associated with unsaturated data and regulatory compliance issues. Both bad data or badly structured data invited security risks for several reasons.
Regulatory compliance and data governance are becoming hotter issues in 2021. As people continue to understand the importance of personal data on digital platforms, governments have started taking necessary measures to secure customer’s data.
3. Provides Clarity To The Business
Have you ever thought about the perfect data for your business? Or how will perfect data look like for your business? With effective data governance, you can get to the point where your organization will have only perfect data.
Here is how perfect data will look like for your business.
- Assurance about your accurate metrics.
- Insight into the most influential metric for your businesses.
- Greater confidence in your analytics.
The Cost Of Data Governance
Data governance means your business will need to assign new responsibilities. Which means there will be a cost associated with this process.
Then there is the cost for organizational change management. Companies that often shift to data governance models must break down their processes and rebuild functional processes. This can also cost a lot, depending on the size of the organization.
Take Away
Today, many more companies are showing confidence in data governance as an essential factor to better manage data management risks. The adoption of data governance is faster in industrial businesses, but even non-industrial businesses can benefit from adopting data governance.
Now that it is clear why data governance is important if your business is dealing with data. What are your thoughts on adopting data governance?
