Data governance (DG) refers to the process of managing the integrity, security, and availability of data. This is based on internal data standards that are followed and policies that regulate data usage. Data governance ensures that data stays consistent and trustworthy so it doesn’t get mishandled. As organizations face new data privacy regulations, effective data governance is more critical. They rely more heavily on data analytics to optimize operations and drive business decision-making.
A well-designed data governance program usually has a governance group, a steering panel that acts like the governing body, as well as a group of data managers. They work together in creating standards and policies to govern data. Implementation and enforcement procedures are primarily performed by data stewards.
Data governance is an important component of an overall strategy for data management, organizations should be focused on the desired business outcomes rather than the data. This comprehensive guide to Data Governance further explains what it does, how it works, and what the benefits it offers. This section also includes information on data governance software and other tools. Browse the links for expert advice and information about data governance best practices and trends.
Why data governance is important
Effective data governance is essential to ensure that data inconsistencies within different systems of an organization are not overlooked. Customers may have different customer names in different systems, such as customer service, logistics, and sales. It could lead to data integration problems and data integrity issues, which could affect business intelligence (BI), enterprise reports, and analytics applications. Further, it is possible that data errors are not identified and corrected, which could impact the accuracy of BI, analytics, and enterprise reporting.
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Why you should have a data governance plan
Inadequate data governance can also make it difficult to comply with regulatory compliance initiatives. This could lead to problems for companies who need to conform to new data protection and privacy laws. A common data format and definitions are developed as part of an enterprise data governance program. This helps to improve data consistency for compliance and business purposes.
Data Governance goals and benefits
One of the key goals of data governance is to eliminate data silos from an organization. This happens when business units create their transaction processing systems that are not coordinated or have enterprise-level data architecture. Data governance is the process of harmonizing the data within those systems through collaboration with stakeholders across the business units.
A data governance goal also includes ensuring data is used properly to avoid errors in systems and to prevent potential misuse of customers’ data. You can achieve this by creating clear policies and procedures regarding the use of data. These policies should also be monitored and enforced on an ongoing basis. Data governance can be used to balance data collection practices with privacy mandates.
Data governance not only provides better analytics and stronger regulatory compliance but also benefits such as improved quality and lower data management costs. There is also increased data access for data scientists and other analysts. Data governance can ultimately improve business decision-making through better information. It is possible to achieve competitive advantages, increased revenue, and profits.
Who is responsible for data governance?
Many people are involved with data governance in organizations. These include business executives, data management professionals, IT staffers, and end-users that have a good understanding of the data domains of an organization’s systems. These are the principal participants and they have primary governance responsibilities.
Chief information officer
The chief data officer (CDO), often is the senior executive who oversees data governance programs and holds high-level accountability for their success or failure. The CDO’s role involves securing approval for funding and staffing. He or she also plays a key role in setting up the program and overseeing its progress.
Data governance manager, and team
In certain cases, the CDO of an equivalent executive (e.g., a director for enterprise data management) could also be the data governance program manager. Other organizations may appoint a lead or data governance manager to manage the program. The program manager oversees a full-time data governance team. The data governance team, also known as the coordinator, is responsible for coordinating the process, leading training sessions, tracking metrics, managing internal communications, and carrying out other managerial tasks.
Data Governance Committee
The governance team is not usually responsible for making standards and policy decisions. This responsibility falls to the data governance committee/council, which is mostly made up of business executives or other data owners.