A company’s data is one of its most important business resources. The amount of information that an organization needs to integrate into their plans and procedures can be intimidating. Big data, eCommerce, and the Internet of Things are all contributing to the problem as multiple complex data streams need to be collected and analyzed.
Data governance is a strategy through which an enterprise can institute formal management of their data assets. It is a collection of procedures, practices, and standards that assists in making intelligent business use of their data resources.
In the current landscape of increased focus on data security, data governance offers a strategy and methods to better safeguard important and sensitive information.
Many organizations are jumping on the data governance bandwagon in an attempt to manage their data resources. Some of them may have been influenced by the best practices adopted by other businesses or competitors.
Other enterprises may be led by supposedly enlightened management who sees data governance as an intellectual exercise that offers mostly abstract advantages to internal processes. Maybe they just read about it in a blog somewhere.
But there are concrete benefits for a company with a strong data governance policy which go far beyond theoretical constructs. The real reason that a business should get involved with data governance is the same one that drives a great majority of their decisions.
In the end, it’s usually always about the bottom line. Money talks and can be made or lost depending on the quality of a company’s data governance program.
Data governance provides benefits that can be grouped into three distinct categories.
Data governance provides top-line benefits, enabling enterprises to make consistent and more intelligent data-based decisions. Companies can unlock the financial potential of their data and plan its efficient use. While these benefits are significant, they may not lead to immediate monetary gains.
Bottom-line advantages include tangible financial results. A governance program fosters a common data language, improving inter-organizational communication and internal processes. This enhances productivity by eliminating confusion during company-wide initiatives.
Risk reduction is crucial in today’s data-driven business environment. Governance enhances data security, reducing non-compliance risks and financial penalties. It also minimizes data breaches while fostering accountability for secure and efficient information handling.
Implementing data governance is essential, but doing so haphazardly can lead to severe consequences for businesses. Without a coherent policy, businesses struggle to process the large amounts of information necessary for informed decision-making.
In industries like healthcare, ineffective governance reduces the reliability of systems such as electronic health records (EHRs), which can suffer from erroneous data entry.
IT executives must prioritize regulatory compliance, especially when handling sensitive personal data. Failure to protect this information and adhere to standards can result in substantial fines, making compliance a critical component of any data governance strategy.
Inadequate security leads to data breaches, causing financial losses and reputational damage. A well-planned data governance program uncovers the location of sensitive data within an organization, allowing for better security measures to prevent breaches and their costly aftermath.
The foundation of a viable data governance program is the development of a common data language which can be used throughout all levels of an enterprise. This endeavor involves representatives from across the business and demands a high degree of collaboration in order to be effective. Buy-in from all stakeholders is a critical component of a formidable data governance policy.
IDERA’s ER/Studio Enterprise Team Edition is a great vehicle for driving down the road toward the benefits of a data governance program. It enables you to build an enterprise data model and collaborate on data terms and definitions. Using the tool allows you to interrogate your existing data resources to discover and document your assets.
Building the common language that is essential to a data governance policy is within easy reach with ER/Studio. Let it help you avoid the pitfalls that come with a lack of understanding and management of your company’s vital business data.
