Data Governance Adds Value to Any Company

These days every company should know that data governance is a vital process for the sake of data extraction from any kind of analytic methods. Still, many companies cut the budget for data governance, looking for specific value justification. However, the reality is quite contrasting to the popular misconception that data governance damages company's budget.

Just keep in mind that any kind of data governance process should be tasked with the optimization of the value of data.

How does data governance make a difference?

According to studies, data is valued at 20-25 % of an organization's value. Studies have found many ways to use data to improve businesses. Thus, making a business case for data governance is entirely possible. You just have to choose the right approach.

Data supports three universal drivers to:

  1. Increase Revenue:

To increase revenue, you have to focus on continuous innovation and performance. Some examples include increased customer retention, better business cycle times or service levels, and improved customer engagement.

  1. Manage Costs:

Data governance processes can help us to decrease or avoid the overall costs. Some examples include process efficiencies, enhance analytical capabilities, simplification of complex analysis, improved resource management and acquisition, and digitalization of manual processes.

  1. Manage Risk:

You can ensure your survival by identifying risk and vulnerabilities which may be present in the company's security, privacy, and compliance. Although you can identify the risks your company can face without doing data governance, you will face huge data privacy fines, loss of competitive position, regulatory, and risk of bad decisions in the absence of proper data governance.

If you are finding the business value of data governance, it is essential to include both qualitative and quantitative significance.

So the question is how to do it?

Conduct Research

You should always research the opportunities which are related to the industry, key performance indicators, and financial news. You should know the activities of your competitors and make sure you understand your customer. You should know the strategies used by your industry so that you can take advantage of every opportunity you get.

Interview Decision Makers

You should interview the critical decision-makers and let the experts validate or choose the best industrial opportunity regarding your company's goal. You should discuss the current state of data needed for the possibilities. Ask questions that address data governance from a potential expert, including statements like: "Is the data documented and well defined? Is it usable as is? Does it have a high level of quality?" etc.

You should also raise concerned on the completeness, validity and accuracy of the data.

Finally, Document the Opportunities:

The documentation shall describe the following key points essential for your company's success:

  • Business challenges it addresses

  • Solution approach

  • Data needed to solve the issues

  • Current data challenges

  • Impact of data challenges

  • Level of effort to address data challenges

  • Impact if data were readily available with good quality

In Short

Data governance can not only help in identifying upcoming business challenges but also resolve them and open new opportunities for businesses to become successful.

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