The Value of Data Governance

Organizations are becoming increasingly reliant on data to make informed decisions, improve operations, and drive innovation. However, the value of data can only be realized if it is administered effectively. Data governance is the compilation of processes, policies, standards, roles, and metrics that ensure the effective and efficient use of information in enabling an organization to achieve its goals. It encompasses the people, processes, data, and technologies required to manage and protect data assets.

The value of data governance is clear. Organizations that effectively manage their data are more likely to achieve their goals, comply with regulations, and gain a competitive advantage. How do we find the value though? That's a great question. Value is defined in different ways by different people. The following are a few areas where you can find value in either just starting or continuing a data governance program:

• ?Establish a clear framework: The first step in data governance is to establish a clear framework that defines the roles, responsibilities, and processes for managing data. This is by far where the most value is found when spinning up a new program. Without a plan, you will find yourself constantly looking at different aspects and never truly mastering any of them.
• Define data quality standards: Data quality is essential for effective data governance. Organizations should define data quality standards that specify the accuracy, completeness, and consistency of data. Without a focus on quality, what purpose does a data governance program really serve?
• Implement data security protocols: Data security is another essential component of data governance. Organizations should implement data security measures to protect data from unauthorized access, use, disclosure, disruption, modification, or destruction.
• Monitor and improve: Data governance is an evolutionary program. Organizations should monitor their data governance program and make improvements as needed. As programs mature, the frequency will lessen, but in the beginning the program should be revisited much more often. At a minimum, data governance programs deserve to be revisited yearly for efficacy as well as what components are part of the program.

?What are some of the benefits to practicing data governance? There are an abundance of them, but a few examples are improved data quality, enhanced data usability, reduced data risk, and fostering collaboration.?A focus on data governance helps to ensure that your organization has quality data. Accurate, complete, and consistent data is essential for making informed decisions and improving the overall quality of an organization's operations. Data governance helps facilitate protecting that same data from unauthorized access, use, disclosure, disruption, modification, or destruction. This is vital for protecting the privacy of individuals, which should always be at the forefront of an organization's data priorities. Having secure, more accessible and usable data for decision-making, as well as operations, is actually a byproduct of data governance. More accessible data leads to improved efficiency, productivity, and innovation.

Data governance also helps to identify and mitigate risks. With all of the controls in place, it's easier to find risks and quickly alleviate concerns around certain parts of normal business activity. For example, external data sharing will have policies and procedures around it to ease the concern about sharing data that could lead to a competitive advantage. This can help to protect the organization from financial loss, reputational damage, and legal liability. Lastly, data governance can help to break down data silos and promote collaboration across the organization. This can lead to better decision-making and improved outcomes. This is usually facilitated by the creation of different teams within a data governance program and ensuring they are working together to solve troubling challenges the business faces when it comes to data.

Data governance can help organizations to gain a competitive advantage by enabling them to make better decisions, improve operations, and innovate more quickly. Data governance is an essential investment for organizations that want to realize the full value of their data. By employing some form of data governance, whether that's a full blown program or bits and pieces of it as you start out on your journey, you can ultimately see better data to make better, more informed decisions.

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