To ensure success, it’s crucial to begin by asking why. Why are we taking a certain action or making a specific plan? This mindset applies particularly well to data governance. Organizations may choose to implement data governance for a variety of reasons. Here are some of my thoughts on the subject.
In today’s age, data is one of the most valuable assets a business can have. It drives decision-making, powers innovation and helps organizations stay competitive. However, with the amount of data growing at an unprecedented rate, managing and governing that data has become increasingly complex and critical. This is where data governance comes in.
Data governance supports managing data as a strategic asset. It involves the development and enforcement of policies, standards, procedures, and guidelines for data as well as defined roles and responsibilities to support it all. In short, data governance helps organizations ensure the availability, reusability, quality, security, and compliance of their data.
So why is data governance important for businesses?
Here are a few possible value drivers:
- Better utilization of data assets: With good data governance in place, organizations can more effectively use their data assets to create data products, gain insights and make data-driven decisions, leading to better performance, optimization and process improvement.
- Improved Data Quality: With data governance in place, organizations can better ensure that the data they use is accurate, complete, and consistent. This leads to more effective decision-making and a greater return on investment in data projects. Fit-for-purpose data quality is crucial when implementing AI/ML models and based on studies one of the key reasons why these development projects fail is bad quality data.
- Compliance: In an age where data-related regulations are becoming increasingly strict, data governance can help organizations comply with laws and regulations such as GDPR or the upcoming EU Data and AI Acts. Failure to comply can result in significant fines and reputational damage.
- Data Security: Data breaches can have devastating consequences for businesses, both financially and in terms of reputation. Data governance helps organizations understand and protect sensitive data.
- Cost Savings: Implementing effective data governance can help organizations avoid costly mistakes such as inaccurate data or loss of data, which can result in wasted resources and lost revenue.
- Control over Data: By implementing data governance, organizations can ensure that data access, processing and management is done in a controlled, regulated and accountable way.