Data is an asset. In this day and age, it is an incredibly valuable asset. Companies value their assets, and hence they should value data as well. Yet, the number of organizations which still do not give data its proper value and invest in data governance is quite significant.
With the latest General Data Protection Regulation (GDPR) coming into effect, many businesses have woken up to the importance of data governance and taken some of the initial steps. But this has to be just the beginning. Data governance and compliance should not be done just because it has been mandated, because then businesses will just be ticking a box without really understanding the significance of what they are doing. A proper data governance and compliance policy benefits an organization in more ways than just making them compliant with the latest norms. It also provides several advantages such as:
When data is managed well, it provides just the correct insights required to help managers take the correct decisions. Incorrect data management results in different projections coming up at different ends of the organization leading to chaos and confusion.
Better data governance leads to better data analysis which ultimately leads to smoother operations. Most major businesses ensure that their top assets get regular maintenance and inspections to ensure they work smoothly. The same applies to data as well – regular inspection and use of best-case policies of data help in smoother operations.
High-quality data governance allows organizations to quickly designate specific functions to different teams, based on their capabilities. Hence, the accountability is noticeably better with data providing insights on the quality of the results. This ultimately leads to a healthier, better company.
It’s a no-brainer – if your organization governs its data well, it will be rewarded with higher-quality data. Data governance allows an organization to better understand itself and hence root out any errors or problems it finds. With standardization of data, everyone in the organization, from top to bottom, is aware of what is happening and how to perform a function.
Data governance is not a chore. Data governance is must, and if you are not convinced about its benefits, think of it this way, it puts your organization on the front foot when it comes to compliance.
The GDPR, which has recently come into effect, imposes huge fines – to the range of €20 million or 4% or annual global turnover – which can destroy a company. This steep fine should, by itself, a good incentive to invest in proper data governance. However, that cannot be the only goal – at the end of the day, good governance will result in a better organization.
What is the best incentive for investing in a good data governance solution? Increased revenue. All the benefits mentioned above ultimately help an organization make smarter, faster, better decisions with more certainty. This adds up which means less errors are made and data breaches are minimized, allowing companies to manage risk and not have to pay out huge amounts of money to handle security breaches and the bad PR that follows.