Ankita Tripathy, 12 hours ago
7 Reasons Data Governance Strategy Is Vital For Data Management
Data Management and Data Governance are two important terms that are becoming increasingly important for businesses and brands. The correct management of these two processes ensures timely and correct flow of information across all levels of the organization.
Many entrepreneurs are still unaware of the importance of having a monitoring mechanism for their information management program. They feel that hiring professional data management services for creating a strategy for their organization will be sufficient. In absence of a supervisory framework, the efficacy of the program will decrease and there will be no input for improving its productivity. A powerful governance model will benefit every aspect of the information management program. In this article, we will discuss the major reasons which make governance critical for the initiative.
With corporations becoming data-centric in their approach, new elements are being created and stored in their digital environment rapidly. Many organizations face the problem of not knowing exactly where specific elements are stored in their system. Companies must know the context in which a particular element was created and labeled as an asset. Governance solves the problem by insisting on metadata creation. This provides the context for the information and helps in easy identification of an asset. Metadata is crucial for locating an element quickly as well as knowing how it must be used. Governance plays a key role in the creation and management of technical and business metadata.
A company generates data associated with several business aspects like customers, products, branches etc. Modern enterprises use numerous solutions and systems for processing and analyzing information which can easily lead to duplication or redundancy. Master data management was developed to find a solution to these issues. It helps save valuable resources like time and money while improving the operational efficiency of the organization. Governance is needed though to keep the initiative running in an error-free manner. It is helpful in creating the directives for the storage, handling, and processing of data elements. Governance lays down the standardized processes which must be used by everyone at the organization when working with information assets. This enables users across the organization to access accurate master data constantly.
Governance is essential for maintaining the quality of information assets throughout their stay at the organization. The practice helps in defining appropriate business rules to identify valuable assets and also in implementing those rules across the corporation. The vital data elements remain under constant supervision to ensure their sanctity is maintained. The initiative also specifies the remedial actions that must be taken in the event of specified situations which may cause errors in the elements. An effective governance model involves the assigning of stewardship roles to individuals who ensure that all the policies and procedures listed by the program are followed every time an asset is used. This invariably helps in maintaining the standards of the information assets.
One of the biggest reasons which make having a data governance strategy mandatory is compliance with legal regulations. Most jurisdictions around the world have enacted strict privacy laws which attract strong penal action if they are not followed. The General Data Protection Regulation (GDPR) of the European Union is one such law. These regulations make the organization accessing the personal information of individuals responsible for ensuring their protection. Governance helps in creating a framework where only the authorized users can access a specific piece of information. It also lays down the security measures for the information management program and ensures that companies are compliant with legal regulations.
The lifecycle of a data element has four stages- creation, storage, usage, and archival or redundancy. A strong governance model provides support to all the phases by creating suitable policies for each one of them. The data owners define how information will be stored, shared, and used by the organization. They are responsible for the creation of the data architecture framework, classification methods, access procedures, data standards policies, and retention measures. The governance team then identifies the appropriate monitoring mechanism for each implemented policy and imparts data governance training to stewards to operationalize the system. It is virtually impossible to protect the valuable assets and ensure legal compliance without a governance program.
Governance ensures the availability of consistent and reliable data at all times. It eliminates doubts regarding the definition or usage of various elements. The analysis generated from the evaluation of consistent assets facilitates accurate decision-making. As the organization benefits from appropriate decisions, the confidence of the workforce in the elements grows stronger. They begin to trust the data sets while using them which leads to a strong data-driven culture being established in the company.
A strong governance model improves the efficiency of the different operations of a corporation. Effective governance helps in maintaining consistent standards of information assets. It also identifies and removes errors from the processes and systems involved in the data management initiative. The productivity of the entire management program improves because of the monitoring mechanism. It has a direct impact on not only the decision-making but also the decisions. The overall efficiency of the entire organization improves with the implementation of a governance program.
Having a data governance strategy will be beneficial for organizations as the initiative will help create a data-centric culture with an emphasis on consistent and high-quality information assets driving the decision-making process.
Shopia Wilson is a certified Blogger at EWSolutions – Data Management Consulting Companies, one of the leading data management services provider and solution company with a global reach. She loves sharing useful information regarding data management.