- A data governance strategy is critical to managing data in organizations.
- Data governance involves preventing overlapping of resources by setting up procedures and regulations to actuate smooth sharing, managing, and data availability.
- An effective data governance strategy helps you know where the data originates, where it is stored and who can access it.
Data is a crucial asset for businesses. Because of the growing importance of data, companies should focus on building a solid regulatory framework to handle, manage and process data. To do so, companies need to extract inputs from all stakeholders, and it is where the role of data governance comes into play. Data governance is a broad concept extending from physical storage to moving and processing data to serve the end-users.
What is Data Governance?
Most of the time, when people mention data governance, they refer to physical storage. But, it is broader than that and extends to how you acquire the data and distribute it among the various company departments for using it.
Data governance involves preventing overlapping of resources by setting up procedures and regulations to actuate smooth sharing, managing, and data availability.
With data governance, you can experience a faster decision-making process as you can quickly move data from one place to another.
In essence, data security, retrieval, synchronization and ensuring data accuracy are what make up a data governance strategy.
What is a Data Governance Strategy?
Data governance strategy is how you name, store, process and share data in your organization. Data is not a byproduct of your organization but a critical part of it. The strategy outlines the efficient usage of data within your organization.
The process involves setting up processes and structures to clean, store and share data. It helps in eliminating resource duplication and enabling access to the data to the ones who need it.
An effective data governance strategy helps you know where the data originates, where it is stored and who can access it.
What are the Components of a Data Governance Strategy?
With an effective data governance strategy, you can manage and share data across your organization. You need to make significant investments in purchasing servers and developing strong rooms.
Also, you need the following critical components to actuate an efficient data governance strategy:
First, understand the data before you set into motion your data governance strategy. You should understand the origin of data, and whether it is structured or unstructured. Once you identify the data, you can go ahead with cleaning, manipulating and storing it. You also need to assign the data a name, value and define a format and source.
Storing data is more than just storing data in physical storage. It extends to the ease of sharing data across the entire organization.
Many companies prefer using cloud storage to ease the distribution of data among the stakeholders. You can allocate specific storage space for different data processing types–analytical systems, transactional processing applications, or general-purpose files with cloud storage.
Storage should include not only data creation but also how the data will be shared and used.
Your storage plan also should include how the data will move through the various systems in your company.
Most data in companies are transactional, meaning that it needs to be moved from department to department for decision making.
If you fail to have a data storage strategy, you will encounter challenges accessing and sharing the data. And not only that, it will be impossible to store data in a single location, and that will pose logistical challenges.
With an efficient data storage plan, you can ease accessing data in your company.
It is an excellent practice to implement cloud-based systems. When you have applications on the cloud, departments can pass on data among themselves for decision making.
Cloud-based applications can make data reuse easier, and every department of an organization can access the data.
When there is a mechanism in your company to share data easily, it will boost your company’s operational efficiency and productivity.
Raw data is of little use to end-users. A process of preparations and transformations makes valuable data. Data can come from multiple internal and external sources.
You need to process the data to make it conform to the different sources within your organization. Developers have to standardize the data for use by the end-users. It is a complex process and comes under the domain of data analytics. Developers need to develop complex codes and applications to make them successful and enable reusing and sharing data.
The next step is to formulate a set of regulations to govern the data handling by applications and employees.
It is, however, not difficult to set up a plan, but adoption poses challenges. The plan will dictate what your employees should do during naming, sharing and manipulating data.
Ensure that your data governance plan is not too complex or rigorous. A simple but solid plan will suffice.
Complexity might restrict quick data flow. Your organization’s productivity will increase only when there is an unrestricted flow of data across all departments.
Benefits of Data Governance
Let us now acquaint ourselves with the benefits that come from data governance:
Data governance strategies enable sharing of data across the entire organization. It leads to better decision making in the organization.
With data governance, data does no longer remain an exclusive domain of the organization. Data now spreads across all departments, such as HR, Finance, Marketing.
With the use of systems like ERP and CRM, you can prevent duplication of resources.
Since data gets accessible to everyone in the organization, it brings about transparency and strengthens collaboration among teams. If there is no data governance policy, data manipulation becomes easier.
Say you use a CRM system, then it becomes easy for you to detect if someone edits or deletes any data.
Sharing the data among your departments also leads to better insights into the data and ensures efficient resource usage.
Keeps Data Clean
A data governance plan ensures that your stored data is in a clean state. You need to update the data to keep it relevant. Clean data helps your employees faster decisions.
Now, check if you have a data governance strategy in place. If not, implement one to reap the benefits. This article will help you understand what it is all about.