Why is Data Governance important for business?
Data Governance is a set of processes to proactively manage and control data and how it is used within an organization. It includes the development of consistent internal standards, as well as uniform ways of enforcing them. This ensures that we are handling quality data. The value of data governance is huge and translates into benefits in almost every aspect of business operations. In today’s article, we will look at the key benefits that an effective data governance program can bring to a business.
Why is Data Governance important?
Data is at the heart of how companies and organizations operate. It is what internal processes are based on, as well as external activities such as marketing and sales.
As awareness of the importance of data and the ability to use it for business purposes has grown, the approach to Data Governance in companies has changed. Today, it seems almost impossible to make effective strategic decisions without the use of data-driven insights. Why is Data Governance so important to the functioning of a company? Only high-quality data will allow a company to achieve its goals. After all, data are useless if they do not carry information.
Why does Data Governance matter?
The key areas of data quality have been identified based on the most frequently observed problems. Data Governance covers completeness, uniqueness, timeliness, correctness, relevance, and consistency of data. Improving quality in each of these aspects translates into improvements for organizations and businesses. Let us now take a closer look at the individual benefits that come from implementing Data Governance.
Building a sense of trust in data
With Data Governance, we build trust in the data that the company’s employees interact with. This means that they have a sense that the data they use is authoritative, reliable, and consistent and that the whole company approaches it in the same way. This applies to the interpretation of terms or the correct understanding of individual process elements. This is why it is so important to implement Data Governance in all departments where you work with data: accounting, IT, marketing, customer service, or sales.
Support in making better business decisions
Another factor that shows us why data governance matters is its impact on making better business decisions. High-quality data translates into more informed action. According to the Pareto principle, 20% of our business actions translate into 80% of our profits. However, to know which activities we should focus our attention on, we need reliable business analysis, based on high-quality data. With Data Governance, we gain confidence that the decisions we make serve our company and are also consistent with previously set goals.
Increased process efficiency
Data Governance translates into more efficient processes within the company. This is because the information derived from high-quality data makes it easier for employees to perform their daily activities correctly. In turn, the sum of these activities translates into the overall functioning of the organization. Efficient processes, in turn, mean greater profits for the company. In addition to tangible financial benefits, effective data management positively influences the external perception of our business. If customer service or sales staff have access to reliable information, this will have a positive impact on their relationships with customers. A lack of knowledge in business dealings leads to a lack of trust in our services or products. Information chaos significantly reduces the quality of relationships with contractors.
Improving data security
Data Governance is the best way to improve the security of the data that is used in an organization. Establishing consistent procedures, as well as ways to enforce them, ensures that data is processed in an appropriate and compliant manner with generally applicable regulations. Regular audits help to detect potential irregularities on time, and this helps to prevent sensitive data from leaking outside the organization.
Better prospects for business growth
Another aspect highlighted by data governance’s importance is better prospects for business growth. Improved data quality translates into the speed of action and accuracy of business decisions. This reduces the risk of mistakes, optimizes processes, and allows us to focus on business development. Development that is guided by reliable information (derived from high-quality data) will bring greater benefits to the company than intuitive actions based on guesswork alone.
Summary
Nowadays, quality data is the basis for the functioning of companies. Along with human resources, technology, and individual processes, data is an integral part of an organization. Without effective data governance, chaos will reign in our operations. Data Governance is the key to building an organization where sound business decisions are made. Only companies where data is secure, qualitative, and used by predetermined goals have a chance of sustainability and moving in the right direction.
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