While data has emerged as a cornerstone of effective business decisions, it may cause more harm than good if you fail to manage it. You cannot expect a random set of numbers to help unless you organize them to spot trends and gain valuable insights regarding your customers, employees, and processes. The best way to clean and organize information is by having a data governance strategy in place. The objective is to ensure that your business data satisfies the criteria of usability, integrity, availability, and security. Let us explain why every business requires a governance strategy, regardless of size and scale.
Business Intelligence solutions can deliver expected benefits only if they get relevant information in the first place. Data must be easy to locate and use, which can be challenging for a large organization with multiple departments. A proper governance strategy ensures availability across all departments according to their needs. It also manages authorization to use it so that sensitive information, such as customer details, does not fall into the wrong hands.
Not all data is useful, and hoarding it can burden your systems immensely. You can imagine the load of redundant information on your IT systems and storage units. The worst part is that finding the elements users actually need is challenging when redundant ones exist. They may even make wrong decisions based on stale and irrelevant information. You can rely on your data governance strategy to determine redundancy and eliminate all extra elements from your systems sooner than later.
Another reason for having a reliable governance plan for your business is that it facilitates consistency as all users work on the same pieces of information. With Data Lineage, they can see a visual representation of its life cycle. The mapping enables them to view the origin, transformation and uses of specific data within the organization. All users have access to consistent and reliable information, so their conclusions and comparisons can be on the same page.
Resolves reporting issues
Data consistency across the entire organization gives users clear standards for metrics and measurements. With the same metrics, users across all departments prepare similar reports that are easy to tally. You can expect a lack of clarification, faulty decisions, and inter-departmental disputes when reports do not follow the same metrics and formats. Improved data governance enhances the reporting process by making it clearer, faster, and cost-effective.
Helps with security and compliance
Security and compliance are perhaps the most crucial aspects of governance policies. The price of security breaches and non-compliance is daunting as you may face hefty penalties, lawsuits, reputational damage, and loss of customer trust. Effective data governance can prevent these issues by laying down guidelines for data acquisition, storage, backup, and security against breaches, theft, and misuse. Moreover, it increases security awareness among your team members.
Data is a strategic asset, so its governance is essential for organizations. The best part is that it enhances the overall value of raw numbers and empowers business owners with better decisions in the long run.