Data governance-What is it and why is it important?
Data governance (DG), the management of the information in enterprise systems is based on a set of internal data standards that are followed and policies that govern data usage. Effective data governance makes sure that data is trustworthy, consistent, and doesn’t get abused. It is more crucial than ever, as organizations are required to comply with new data privacy regulations. Data analytics is increasingly used to improve operations and support business decision-making.
A well-designed governance program includes a governance staff, a steering group that acts as the controlling body, and a team of data stewards. They work together on creating the standards and policies that govern data. Also, they implement and enforce procedures that are primarily performed by the data supervisors. Along with the IT and data management teams, executives and other business personnel are also involved.
While data governance should be a central component of an overall strategy for managing data, organizations should not focus on the data. This comprehensive guide to governance also discusses what it is, how and why it is so important, as well as the business benefits that it brings, and the challenges associated with governing data. An overview of data governance tools and related software will be provided.
Why Data Governance is Important
Without good data governance, inconsistencies could not be corrected in various systems across the organization. In sales, logistics, and customer service systems, customers may have their names listed differently. This could hinder data integration efforts, create data integrity issues, and affect the accuracy of business intelligence (BI), enterprise report, and analytics apps. Additional data errors can also be missed and not fixed, which could further affect BI accuracy and analytics accuracy.
The reasons you need a program for data governance
A poor data governance program can also slow down regulatory compliance initiatives. This could create problems for companies required to comply with new data protection and data privacy laws. An enterprise program of data governance can result in the creation and application of standard data formats and common data definitions in all business systems. This helps to improve data consistency and compliance.
Data governance objectives and benefits
To eliminate data silos inside an organization is a key goal in data governance. When individual business units create their transaction processing systems, they can lead to silos. Data governance involves the coordination of data across systems. This is done in collaboration with all stakeholders.
Another goal of data governance consultant involves ensuring that data is used correctly. This helps to avoid errors and block misuse of customers’ data. It’s possible to create uniform policies about data use, and then monitor the usage of the policies and enforce them regularly. Data governance can also help balance data collection methods and privacy requirements.
Data governance brings more benefits than just better analytics and stronger regulatory compliance. Data governance provides better information for executives, which can lead to improved business decision-making. This will help to increase revenue and profits, as well as competitive advantages.
Who will be responsible for Data Governance?
The data governance process is often handled by several people. This includes business executives as well as IT staffers and data managers. These are the most important participants and hold the primary governance responsibilities.
Chief Information Officer
If there is one, the Chief Data Officer (CDO) often oversees data governance programs. He or she is responsible for their success and failure. The CDO has the responsibility of securing approval and funding for the program, leading its creation, monitoring its progress, and being an advocate for it. A CDO will not be appointed by an organization if it doesn’t have one. In this case, another C-suite executive will act as an executive sponsorship and handle the same functions.
Data governance manager and team
In some instances, the CDO or equivalent executive may also be responsible for managing the data governance program. Some organizations have a designated data governance manager or leader who is responsible for running the program. The program manager heads a group of data governance workers who work on the program full-time. The data governance bureau, more commonly known as the program coordinator, coordinates the process, facilitates training sessions, monitors metrics, and handles other administrative tasks.
However, the governance team doesn’t usually make standards or policy decisions the responsibility for this is the data governance committee/council, which is mostly made up of data owners and business executives. The base data management policy and any associated policies, rules, and policies on data access or usage are approved by the committee. It also resolves any disputes, including disagreements between business units on data formats and definitions.