How does data governance help digital transformation?

For digital transformation to be successful, effective data governance is crucial, especially when it comes to productising professional services and creating digital products. A Boston Consulting Group report found that 33% of Australian corporations succeed in their digital transformations, 47% create some value, and 20% fail.

Unfortunately, data-related issues are a common cause of failure in digital transformation initiatives, with 84% of them failing due to such issues. In addition, a staggering 73% of data in an organisation is never successfully used for any strategic purpose.

There is growing interest in data governance, organisations like Data Governance Australia are setting industry benchmarks for the collection, use, and management of data.? Despite this, many governance programs today are ineffective, and one of the main reasons for this is a lack of recognition of the value-creation potential in data governance by the C-suite.?

In the work that we do at Assembler, we also see that business unit leaders and other product owners often don’t realise that good data governance is a transformation enabler, or don’t know where to start. We know that the days of data governance being a box-ticking exercise or something to “do at the end” are over.

In this article we will look at the top 5 ways data governance helps digital transformation.

1. Ensure compliance with regulations and standards

Compliance with regulations and standards is not just about avoiding legal and financial risks, it's also about building trust with your customers, partners, and stakeholders. Nothing builds trust faster than having your ducks in a row!

That's where data governance comes in - it helps you ensure compliance with data privacy, security, and management regulations and standards, making sure you're not just playing by the rules, but excelling at them.

2. Improve data quality

Data governance is the secret ingredient to serving up top-notch digital products and professional services that leave your customers craving more. By keeping your data accurate, complete, and up-to-date, you can ensure that your services are not only enhanced, but turbocharged.

This means that your customers can make the best possible decisions, enjoy the ultimate customer experience, and avoid any missteps that might cause them to question your reliability.?

Data governance can help you slash the costs of poor data quality that can weigh down your bottom line. Imagine the power of saying goodbye to the cost of rework, lost sales, and customer churn for both you and your clients.

3. Enable collaboration and integration

Collaboration and integration between different teams and systems can be a game-changer. But, how do you get everyone on the same page?

With clear standards for data management, your business can ensure? data is consistent, accessible, and reusable across different products and services. By breaking down silos and creating a cohesive approach, you can unlock the power of collaboration and integration. This can lead to reduced development time and costs, increased cross-selling and upselling opportunities, and a superior customer experience.

4. Facilitate Innovation

Data governance facilitates innovation by providing a framework for experimentation and exploration of new ideas. By defining standards for data collection, management, and analysis, businesses can enable teams to experiment with new data-driven products and services while ensuring compliance with regulations and standards.

This can help businesses create new revenue streams, enter new markets, and stay ahead of competitors.

5. Manage Risk

Data breaches, cyber attacks, and other security incidents can be disastrous for businesses. That's why data governance is an essential tool for managing risk and keeping your business safe. With a strong data governance framework in place, businesses can define standards for data security and access control, ensuring that sensitive information is protected from unauthorised access or loss.

By mitigating the risk of security incidents, businesses can maintain customer trust, avoid legal and financial penalties, and safeguard their hard-earned reputation.

Business product owners have a significant role to play in ensuring that the business can realise the benefits of integrating data governance into the end-to-end business lifecycle of digital products. Without effective data governance, the failure rate of digital transformation initiatives remains high, and businesses risk missing out on opportunities to stay ahead of their competitors.

By recognising the value-creation potential of data governance and implementing a strong framework, businesses can unlock the full potential of their digital products and services, and ultimately, their success.