What is Data Governance? What are its Effects on Businesses?
As an entrepreneur, we don’t have to tell you how crucial data is to your business. But while that’s true, it matters how you manage it. In the age where data has become an independent aspect of dealing with, you cannot remain casual about it. You must have a solid system that helps you manage data efficiently while maintaining its integrity and security. Precisely, the term is data governance!
Data governance relates to how you administer and manage your data. It can help you protect your business and contribute to its efficiency. But it could impact your business in many ways. Let’s look at them.
What is Data Governance?
Data governance refers to the overall administration and management of your business data. It involves deciding and controlling its access and use and maintaining aspects like integrity and security. A data governance policy lays data-related policies and guidelines to maintain data while ensuring compliance.
Effective data governance helps build data consistency and trustworthiness. Businesses these days make extensive use of data to make decisions and drive strategies. Thus, setting up a data governance policy can support these aspects and help companies catalyze data to achieve business excellence.
A data governance team of an organization typically comprises a governing body and a team of data stewards. They work together to set standards and its policies. Additionally, their work profile also involves setting implementation and enforcement procedures. A company can also involve its in-house data management team for more effective and aligned data governance.
5 Ways Data Governance Impacts Your Business
Data governance impacts your business in several ways. It covers various aspects, from compliance to data security, which is critical to every business. So, here are five ways through which data governance can affect your company.
1. Enhanced Compliance with Regulatory Laws
Data governance helps your keep your data organized. But it could be liable for compliance under HIPAA or the Sarbanes-Oxley Act based on your business and how you gather and store data. Failure to comply with these regulations can lead to severe legal and monetary consequences.
Businesses must understand that data governance isn’t that straightforward. It requires an expert to keep up with the regulatory needs and avoid penalties.
2. Prevention of Data Duplication
Data duplication wouldn’t have any regulatory repercussions. But continuous data duplication could multiply duplicate data and stress your data storage systems. So, how can you leverage data governance to avoid data duplication?
When you store data in the cloud, you can use it to fetch real-time insights. Data backups can help you analyze data and identify patterns. But managing and organizing the process requires an expert hand.
Data governance involves setting safety parameters and defining processes to safely duplicate data and establish its reasons. But it goes beyond data duplication. It can also help find the correct data to aid business growth.
3. Increased Data Consistency
Inconsistencies could result in strategic gaps. While working on the same objectives, you cannot have every department work on a different dataset. Departmental decision-makers would never come to a consensus in that case!
These problems are particularly prevalent when your business is spread across various locations, and you have millions of data sources to handle.
But a data governance policy can help bring all data sources under a single umbrella. It can help you create a single repository that allows controlled access to every stakeholder. Thus, the action can help increase data consistency and integrity for more aligned and unified decision-making.
4. Improved Data Security
Data security is an integral aspect of data governance. It involves restricting data access by setting up security measures, including multi-factor authentication, etc., to let only authorized people into the repository. Thus, it helps you avoid data vulnerability and keep bad actors away from it.
Furthermore, it involves assessing employee data use and its purpose and combing through files to determine if ex-employees still have access. Data governance also helps set up systems that allow the IT team to revoke data access when necessary.
5. Increased RoI
Data governance doesn’t directly contribute to your RoI. Instead, it catalyzes or, in other words, amplifies returns through various ways that contribute to enhanced data management. Those ways include the following.
- Prevention of data duplication
- Quick and secure data access
- Increased data analytical capabilities to make strategic decisions
- Enhanced regulatory compliance
In addition, a data governance strategy can also cover data automation consulting. It can help companies automate data management and get insights into trends, patterns, buying habits, sales, pain points, etc. All these aspects can aid more focused decision-making without spending too much time gathering, sorting, and analyzing data.
Enhance Data Governance Efficiency with Datafortune!
Are you a business looking to set an efficient data governance policy? Partner with Datafortune and improve the way you manage your data.
Our data governance experts specialize in setting up data governance policies from scratch or taking them up halfway through to improve your data landscape. We assess your existing data policies, understand your business’s data context and build data governance covering everything from access to use and security to overall management.
Click here to connect with us and build an impeccable data governance policy exclusively crafted for your business.