Data Governance can be described as a system where the right person to have control or authority on the data assets is selected and he is also defined as the right process or way to use those data assets. The data governance selects the technology, people, or team who would manage and protect data assets.
According to the Data Governance Institute, data governance is a system where the decision for the rights and responsibilities of the information-related process is taken.
And this decision is taken based on the models that explain the selected person or team responsible assigned to take selected actions under what circumstances, information, and method. Data Governance is all about how one handles the data that is collected in a business.
In research conducted in the year 2019, data governance was considered among the top 5 initiatives that had been taken for the organizations globally.
Data Governance is a trend that is garnering attention and popularity at a great speed as the high-end technology like machine learning and AI is all based on the quality of data and the world today runs on technology and digitalization.
Why Data Governance is important today?
Today, the overall success of a business is dependent on the data itself. Data is considered as the core asset of success. Businesses around the world are embracing digitalization. Even the small scale sectors are depending on digitalization for the survival and success of their business.
If a business can govern their data, then they can make successful transformation digitally and get a chance to exploit the data which till then turns into assets for the business.
A solid data governance structure is very important and it should be installed in every organization, big or small for the benefit of the brand and its business objective models. The data governance structure shall decide the standard of data that is needed and execute the responsibilities within a company co-relating to the business ecosystem.
A proper and maintained data governance structure will help to strengthen the business during its transformation into a digital platform on many levels:
- Management: In the case of the managerial position, the data governance would take of the corporate data assets of the company and as a result, this would have an impact upon the operational procedure of their business and also their market opportunities.
- For issues related to finance, a data governance system would take care that reporting is being done consistently and accurately.
- Data Governance majorly affects sales and marketing in a business. This would help bring valuable insight into the preferences and choices of the customer.
- In the case of procurement and supply chain management data governance shall seek and find out the process of reducing costs and take other initiatives about the operation of the business.
- Data Governance would also help the business in legal affairs incase of increasing regulatory requirements.
Advantages of Data Governance
Though in the above lines, we have already spoken about the benefits a business can have with the introduction of data governance but there are a few advantages that we would like to exhibit.
Data governance brings out a better and clearer version of your data and better data churns out better and improvised business analytics and decisions and all these lead to better results or profits.
Future Goals of Data Governance
Data governance was set with the objective of establishing the process of operating the business, setting the responsibilities and proper storing of the corporate data. But data governance must have a future goal which consists of:
- Eliminating or minimizing risks associated with the business
- To improve communication- both internal and external
- To establish rules within the core business
- To increase data value
- To reduce the cost of production
- To help the brand survive with the help of risk management and optimization.
So, the awareness of data governance must be spread to help those businesses who believe in technology and digital advancement and wants to rely on them.
Such businesses can be taught and made aware of the impact of data governance in the modern business markets of today and how this also affects the business environments, the stakeholders, and also the motive of a brand.