What is Data Governance?
It framework establishes accountability and ensures appropriate behavior in the value chain by all people at all levels in the organization, regarding data as a key business and strategic asset.
Benefits
It provides numerous benefits for any organization that depends on data for critical business processes and decision making. Some of the top benefits include:
Improved Data Quality and Integrity
One of the primary goals of it is to improve data quality across the organization. By establishing processes, roles and responsibilities for maintaining data quality, Data Governance helps eliminate data issues like duplication, inconsistency and inaccuracy over time. This results in higher integrity and trust in organizational data for operational and analytical uses.
Increased Compliance
By cataloguing sensitive data assets and governing their usage and security, data governance supports regulatory compliance initiatives. Personally identifiable information, healthcare records and other regulated data types can be properly managed according to industry and regional compliance standards through data governance controls and oversight.
Risk Mitigation
Related to compliance is risk mitigation. It works to identify risks around data such as privacy breaches, regulatory fines or loss of consumer trust. Through assessment, policy setting and adherence monitoring, the risk of data misuse and leakage can be significantly reduced.
Cost Savings
Poor or lacking data governance often results in inefficient processes, redundant data capture and storage, and extra workarounds to deal with data issues. Strong governance eliminates these wasteful activities, freeing up budget and resources. Automating governance tasks also reduces manual labor costs over time.
Boosted Analytics Capabilities
High quality, well-described data that is findable and accessible supports descriptive, predictive and prescriptive analytics initiatives. It lays the foundation for analytical uses of data by addressing issues like taxonomy, metadata, integration and accessibility.
Roles and Responsibilities
Successful governance demands participation from parties across the organization. Key roles in the governance framework typically include:
Steering Committee
The steering committee provides executive sponsorship and helps align it with strategic business objectives. Members represent high-level stakeholders.
Governance Office
A small team typically heads up ongoing governance activities like policy enforcement, issue resolution, program management and support.
Data Trustees and Stewards
Those closest to organizational data (ex: line of business owners) govern specific assets as trustees. Stewards perform day-to-day maintenance and ensure quality.
Data Consumers
End users of data participate by providing feedback, adhering to policies and controls, and respecting governance responsibilities when using data.
Implementation Challenges
As with any big change management effort, establishing a comprehensive data governance program faces challenges:
Resistance to Change
Some resist the new processes and oversight associated with governance. Buy-in at all levels must be gained.
Competing Priorities
Other demands on time, budget and resources can cause governance to lose momentum or stall. Commitment is vital.
Complexity
The scope of governance can be daunting across many domains, systems, and geographic locations in a large organization.
Lack of Support
Governance requires dedicating the right skilled staff and enabling technology. Without proper support, the initiative will struggle.
Measuring Success
To gain continued support, governance must demonstrate impact over time:
Improved Data Quality Metrics
KPIs around reduced errors, better metadata and decreased issues indicate governance is working.
Increased Trust in Data
If end users find data more fit for purpose and expand usage, governance improved usability and accessibility.
Streamlined Processes
Automation reduces manual effort and exceptions. Cycle times and costs per process provide a quantitative view.
Audit Results
External audits can validate controls implemented through governance effectively reduce risks like breaches.
Adopting a comprehensive, well-designed and supported data governance program takes commitment but ultimately positions an enterprise's data as a trusted strategic asset rather than an ongoing liability. With the right framework, people and processes established, it pays dividends in productivity, insight, compliance and long-term competitive advantage.
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