The business world today sits on unparalleled data access and every business decision, small or big, leads to new data every day. Form complex tasks like managing workflows via the cloud or adding a new customer entry, managing these large volumes of data without strict adherence to data standards and best practices can affect decision-making. That’s why many businesses develop data governance strategies to help them avoid such challenges. This guide delves into data governance and how your business can benefit from a data governance strategy.
What’s data governance?
Data has become a mainstay of business decision-making and this trend is rapidly increasing as businesses gain more confidence in their data sets because of how accurate data has become. A huge part of this depends on data governance. But exactly what is data governance? Data governance encompasses processes, roles, policies, and standards that enable organizations to efficiently leverage data for efficient business outcomes.
Often, many people confuse data governance with other data science terms like master data management, data stewardship, etc. Some of the terms appear to be similar but it’s essential to stick to the overarching objective of data governance, thus ensuring that data is usable, accessible, and protected. That, notwithstanding, you’ll need to borrow expertise from different subject experts to form a good data governance team. At best, you can draw from data scientists, cyber-security experts, policy analysts, etc., to implement a good data governance strategy.
How does data governance work?
Data governance isn’t a top-down process. It’s a never-ending process requiring data governing bodies to create internal data rules that manage data availability, usability, integrity, and security. This team establishes protocols defining who can access what data type and the context within which they can use that data.
Benefits of data governance.
The benefits of data governance are endless and many businesses may enjoy problem-specific benefits different from others. We’ve listed a few below.
It saves time and money.
Searching for relevant data can be daunting, especially in an unorganized database and siloed environments. The longer it takes to access relevant data, the thinner the chances of scaling your business processes. Unfortunately, this is the reality for many small and medium businesses. About 70 percent of organizations waste over 10 hours each week on several data-related tasks, including pinning the right information down. A good data governance initiative can also help rid your database of duplicates. Companies get access to quality data, which helps them avoid errors, waste money on mistakes, and repeat efforts.
It improves business decision-making.
Data is a valuable raw material for companies but many only realize this value by using insight-generating tools turning raw data into actionable analytics. Data teams work during the transition process building a clear language across the organization, ensuring that individuals follow the best practices in using an organization’s data.
Data governance enables organizations to produce trustworthy results by continually monitoring and ensuring quality assurance over time. The clarity of thought and purpose is essential for stakeholders in authority processes and data governance improves their confidence in predictions and analysis, helping them make bold decisions for significant growth and business value.
It helps mitigate risk and increases compliance.
Businesses don’t need to reduce risks, which are part of business management. Rather, they need efficient and accurate data to ascertain the many implications of risky actions so they can generate outcomes that make the best business sense. Data governance gives businesses the needed flexibility. What’s better is that data governance ensures compliance to local and global regulations without businesses looking over their shoulders.
All in all, today’s businesses don’t just need data; they simply can’t function without it. Therefore it’s essential to prioritize data governance to ensure your business functions efficiently at all times.