Mon. Oct 21st, 2019

World Trades

Finance Blog

How Improved Data Governance Improves Business

3 min read

Governance is more important than ever. However, only 47.9% of businesses have a governance program in place, according to the First San Francisco Partners (FSFP) study. When most leaders implement their governance program, they’re in a hurry to meet the basic requirements. But they don’t reap the benefits this way.

Instead, you should learn about governance and how it can improve your organization overall. Despite what you’ve heard, there isn’t a big tradeoff between governance and big data. You want to ensure that your data doesn’t affect your revenue.

What is Data Governance?

Big data governance is how you manage your big data. Big data involves diverse data, data velocity, and data volumes. Keeping track of that data allows your business to make better decisions. There are several ways that you can better manage your data.

1. Better Business Decisions

One of the biggest benefits of governance is that it leads to better business decisions. This aids with the decision-making process and how those decisions can affect the entire organization. When you have well-governed data, it’s easier for everyone to receive insights about that data. This means that decisions are made based upon this data, which leads to improved accuracy and trust.

2. Increases Efficiency of Operations

Data is especially important for data-driven businesses. It should be treated as a valuable asset. A manufacturing business protects their physical business by going through regular inspections, maintenance, and upgrades. This ensures that the assets are operating smoothly with little downtime. You should do the same with your data.

3. Improves Data Understanding & Lineage

A data governance framework gives you greater understanding about where your data is and what it is. When you implement governance, then it’ll provide you with an overall view of your data assets. This provides leaders with greater accountability over this information. When you assign permission to your data, then it’s easier to see who’s responsible for that data.

4. Higher Quality Data

Governance leads to higher quality data. Organizations that have effective governance programs in place will have access to high-quality data. While both of these concepts are different from the other, some of those goals still intersect. This may involve the consistency and standardization of data.

But the way to address these two concepts is to ask different questions. Data quality is about knowing how complete and useful the data is. Meanwhile, governance is about where the data comes from and who’s responsible for it. Governance leads to higher quality data since it makes it easier to answer these questions.

5. Provides Regulatory Standards

If your organization hasn’t adopted a governance program, then compliance is the best place to start. You could get hit with a million-dollar fine or a 4% global turnover — whichever is higher. GDPR fines are something that every organization should look out for. Data-driven businesses won’t enjoy any of these benefits if they’re not aware of their own performance.

6. Increases Revenue

Increasing revenue should be your ultimate goal. All of the above-mentioned governance goals can help your business perform better and make better business decisions. This leads to a decrease in errors, even when data breaches and false starts to occur. If you invest more time and money in managing risk and finding holes in your business security, then you’ll prevent a potential fallout.

With these benefits in mind, you should focus on governance. Twenty-three percent of businesses said this information has improved their governance efforts. In this ever-changing climate, governance is more important than ever. You should treat your governance program as part of your business strategy.

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