A fundamental element of a comprehensive data management plan is Data Governance. However, independent consultant Nicola Askham stated in a September 2023 blog post that for a governance program to be effective, firms must concentrate on the anticipated business benefits of the program, beginning in the early stages of an effort. The Chief Data Officer of the Bank of New York Mellon Corp., Eric Hirschhorn, discussed this similar topic in a session at the 2022 Enterprise Data World Digital conference. Data Governance is an important topic covered in MBA Data Analytics in Chennai.
What is Data Governance?
Data Governance is the process of overseeing the accessibility, usability, security, and integrity of corporate data. Internal guidelines and rules govern this process and regulate data consumption. Consistency, reliability, and non-misuse of data are ensured by effective Data Governance. As companies deal with more stringent data privacy laws and depend more on data analytics to streamline operations and inform business decisions, it’s becoming more and more important.
A well-designed Data Governance program usually consists of a steering committee or council that serves as the program’s governing body, a team of data stewards, a senior executive who directs the program, and a governance team that maintains it. Together, they develop the guidelines and policies that control data, with data stewards mostly handling the processes for implementation and enforcement. In addition to the IT & data management teams, it is ideal for CEOs and other representatives from the business operations of the organization to participate. Let’s discuss why Data Governance matters.
Why Does Data Governance Matters?
In the absence of efficient data governance, various systems throughout an organization might not resolve data inconsistencies. For example, in systems for sales, logistics, and customer support, customer names are occasionally listed differently. Failure to resolve these discrepancies could make data integration more challenging, resulting in operational issues in those departments and jeopardizing the accuracy of business intelligence (BI), enterprise reporting, and data science applications. For better options regarding MBA courses, explore MBA Classes Near Me.
Initiatives for regulatory compliance may also need better Data Governance. This could present challenges for companies that have to comply with an increasing number of data privacy and protection laws, such as the General Data Privacy Regulation (GDPR) of the European Union and the California Consumer Privacy Act (CCPA). To improve data consistency for business purposes and to assist in meeting regulatory requirements, an enterprise data governance program usually involves the creation of common data definitions and standard data formats used in all business systems.
Data Governance Goals
Dismantling data silos inside an organization is one of the main objectives of data governance. When distinct business groups implement independent transaction processing systems without centralized coordination or an enterprise data architecture, silos of this kind frequently form. Data governance is a collaborative process that involves stakeholders from different business units with the Data Governance Goals of harmonizing the data in those systems. These goals can be detailly explored in MBA in Data Analytics.
Achieving this goal involves preventing data errors from entering systems and avoiding potential exploitation of sensitive information, including customer personal data. Developing consistent guidelines for the use of data and implementing processes to continuously monitor usage and enforce the guidelines can accomplish this task. Furthermore, Data Governance can assist in finding a middle ground between privacy laws and data gathering procedures.
In addition to enhancing regulatory compliance and producing more precise analytics, data governance offers the following advantages:
- Enhanced quality of data.
- Reduced expenses for data management.
- Greater availability of the data that analysts, business users, and data scientists require.
- Improved data-driven decision-making for businesses.
- Ideally, higher revenue and profits as well as competitive advantages.
Data governance is the structure of guidelines, practices, and standards used to manage an organization’s data assets. It matters because it ensures data integrity, security, and compliance, enabling reliable decision-making and protecting against risks. In this blog, we explored what is Data Governance and why it matters. You can explore more about Data Governance at MBA Business Analytics Colleges in Chennai. By prioritizing Data Governance, organizations can harness the full potential of their data, fostering trust and driving strategic growth in an increasingly data-centric world.