As humans, we’re constantly producing more and more data but falling behind when it comes to consuming this data in a meaningful and structured manner. A person creates roughly 1.7 MB of data per second and 95% of companies express the need to manage their data in a more organized fashion. Not just that but, 80-90% of the data we generate today is unstructured. These numbers provide a clear picture of the need for data governance. But what is data governance? Let’s take a look!
What is Data Governance?
Data governance sets policies and procedures in place and implements them to ensure that an organization’s data is accurate and handled properly when being entered, stored, modified, accessed, and deleted. The responsibilities of data governance include setting up the infrastructure and technology, establishing and maintaining processes and policies, and identifying individuals who have the authority and responsibility of handling and protecting certain kinds of data. But as technology is always evolving, the definition of data governance is not limited to this and could evolve in the future.
The purpose of data governance is to:
- Discover important data and information
- Set up a process to manage data
- Measure the effectiveness of efforts to achieve business objectives
Data governance should not be the collection of impromptu and calculated data-correction projects. Rather, data governance should be a well-thought program that can efficiently streamline processes and make work easier for internal and external stakeholders of an organization.
By now, you’re probably thinking, “Sure, data governance sounds great, but does my organization need it?” The answer to that? Yes. Every organization creates data (some more than others) and every organization (no matter how big or small) needs to have a data governance program in place.
Importance of Data Governance
Data governance should not be done for the sake of data, but rather for the benefit of the organization and its teams. When done correctly, data governance can help an organization’s systems and databases be reliable, reflect the true reality of data, and support the decision-making process.
Data governance is important for your organization because:
When the data is governed properly, it ensures that data is accurate and free of errors. When this happens, users will have more confidence in the data, thus more confidence in the decisions they make based on that data.
- A single version of the truth
Imagine having all decision-makers and users in different departments working with the same set of data. Seems like a dream, right? You can make it a reality with data governance! It reduces the time spent wondering which spreadsheet is better or more updated as all parts of the organization are coordinated.
- Regulatory, legal, and industry compliance
Did you know that most auditors and regulatory representatives do not look at the actual data but at how the data was generated, handled, and secured? A strong data governance program is the key to regulatory, legal, and industry compliance.
- Reduced cost
With data governance, day-to-day activities become more efficient and effective. It also reduces waste caused by a decision made based on inaccurate data. Data governance can also greatly benefit the entire supply chain right from logistics personnel, to sales representatives, to customers as working with the same data can avoid confusion, reduce turnaround time (TAT), and execute operations smoothly. This in turn helps reduce the overall costs. It can also help reduce costs during data migrations by improving accuracy and efficiency and reducing the time taken to complete the data migration.
Organizations can thrive when they work with accurate, reliable, and consistent data, and that, in its truest essence, is what data governance is all about.
Up next, we’ll be sharing the steps to starting a successful data governance journey – keep an eye out on our blog to stay posted!
To Sum It Up
Smart data governance that includes the right processes, people, and tools is essential in an organization’s digital transformation journey. Whether you’re looking for better consumer support and management, improved compliance, or better analytics, an organizational data governance program can ensure that your data is reliable, high-quality, and available to everyone who needs it. But it’s not just the processes that need to be changed – a change in the overall culture that prioritizes consistency and responsibility of data governance is also needed for data governance to be successful in an organization.
We’d love to connect with you and chat about our data democratization services that can transform your digital journey. Let’s get in touch!