Organizations that establish effective data governance frameworks discover several benefits.
Operational efficiency is a significant benefit of implementing a well-structured data governance program. This includes reducing redundancy, improving data retrieval, and minimizing errors. In turn, these efforts help drive revenue gains and cost savings. They also ensure that data processes are in line with business objectives.
Effective data governance frameworks ensure auditable compliance with HIPAA, FedRAMP, GDPR, and CCPA regulatory standards. This protects your organization from legal and financial consequences while building trust with customers and stakeholders.
These policies will typically include a data stewardship committee, a team that manages the day-to-day implementation of your data governance program and its policies. It’s responsible for monitoring and responding to compliance from employees and external sources and resolving disputes. It’s crucial to ensure consistent, effective communication throughout your organization. This will allow you to serve your audience better while avoiding misinformation and data duplication. This leads to improved efficiency and accurate data models that can improve your bottom line. For example, a coffee shop with stringent data governance can match the amount of coffee and ingredients to customer demand, reducing waste.
Data governance frameworks are designed to protect the integrity of business information. This involves setting policies and procedures to minimize the risks of unauthorized access, breaches, and fraud. The framework also identifies the people who own or manage data assets and gets them on board with the program.
In the long term, this helps ensure that all employees follow security protocols and that all data is secure from top to bottom.
You must incorporate the right people, processes, and technology to implement a successful data governance framework. Start with a manageable, application-specific pilot project and expand it across your organization based on lessons learned. You should invest in a software solution that automates many governance and stewardship tasks.
Data governance policies and procedures must ensure data is accurate, reliable, and accessible. This allows employees to use data consistently and effectively and improve business performance. With effective data governance, inconsistencies between systems can be solved. This can result in data errors that adversely affect the accuracy of BI, enterprise reporting, and analytics applications.
Ineffective data governance can also hamper employees’ productivity. Poor data governance can also make it difficult for teams to identify and capitalize on timely upselling or cross-selling opportunities.
Leaders must understand the expected business benefits for a data governance program to succeed. This can help them get buy-in and support from other leaders. A well-designed data governance framework may include a business case, training on data governance principles, and metrics to track progress. Additionally, automating as much of the process as possible is essential to save time and resources. This includes implementing self-service tools and workflows for data requests and permissions requests.
Data governance frameworks include policies and procedures establishing how data should be acquired, stored, processed, and protected. Regulatory, legal, and industry compliance require solid data management, including precise, consistent definitions and standardized lineage mapping.
Using reliable policies makes meeting compliance requirements much more accessible for business managers. For example, in the case of environmental sustainability, a company must report its greenhouse gas (GHG) emissions by scopes 1, 2, and 3. Each scope requires a unique information set to be collected and reported correctly.
For example, a scope one reporting requirement may involve data on direct emissions from a physical plant. A scope three reporting requirement might include indirect emissions from all supply chains. To report accurate GHG emissions, a business must have a comprehensive data governance program that includes a business glossary, standardized data definitions, and lineage mapping. This data will allow the business to identify where in the organization there are gaps in their knowledge and then build processes to fill these gaps. The data governance program must also ensure that all processes are documented and standardized.
Whether creating unique marketing campaigns or implementing customer engagement metrics, innovation is a way for businesses to stand out. It helps them gain market share and revenue, ultimately leading to profitability. However, this innovation depends on the accuracy and organization of business data. A well-executed data governance program can establish processes that ensure innovation is based on reliable information.
For example, a business may need to set standards for naming conventions and tracking data lineage so all departments can use the same methods. This data democratization allows employees of any technical skill to access the data they need to make informed decisions, improve performance, or discover new opportunities.
Regulatory compliance, data security, and improved scalability are all significant benefits of a governance framework. Still, a robust program can also help businesses improve business efficiency and promote collaboration between functional areas. The key to success is communicating the value of a governance framework to stakeholders and building advocates across the C-Suite. Start with a small project to demonstrate the impact and then build on it.