Organizational success depends on certain core building blocks that work in alignment with common business objectives. These main building blocks include business activities, data and analytics, but we believe the most important ingredient to organizational success is data governance. Although it has been somewhat of an abstract concept until now, data governance has been shown to provide cohesion in the standards to align people, processes, data and technology for successful and sustainable results while simultaneously helping organizations leverage data as a corporate asset.
Assets typically generate more value if they have high levels of utilization. In the context of data, this means governed data assets will be more valuable if they strengthen existing operations and guide improvements. As organizations seek to unlock more value by implementing a wider analytical footprint across various business functions, data governance will guide their journeys.
Data Governance: A New Perspective
Becoming a data-driven enterprise means making decisions based on empirical evidence, not just a “gut feeling.” This transformation requires a clear vision, strategy and disciplined execution. Organizations that want to succeed in the digital age understand that their cultures and decision-making processes must become more proactive and collaborative. Of course, data is at the core of business performance and continuous improvement, but being truly data-driven changes this mindset. Business leaders are beginning to realize that making data more accessible and useful throughout the organization contributes to the results they want to achieve and must report to their boards. If traditional asset management concepts are applied to data, then objectives for security, quality, cataloging, definition, confidence, authorization and accessibility can also be defined and achieved. These areas then become the performance criteria of the new data asset class. So, transforming an organization’s leadership and the rest of its culture to perceive and treat data as an asset changes its classification from “cost” to “investment,” making data governance key to this new perspective.
Data Governance: Definition and Purpose
Data governance is important to the modern economy because it enables the transformation of data into valuable assets to improve top and bottom-line performance. Well-governed data is accessible, useful and relevant across a range of business improvement initiatives. At its core, it is a cross-functional program that develops, implements, monitors and enforces policies that improve the performance of select data assets. Implementing a data governance plan ensures that accurate data is available to support decision-making and by using this rationale, potential objectives to meet the strategic intent of the organization can be defined to derive value.
IVP EDM: Data Governance Engine
Data governance ensures improved data security, quality, accessibility, understanding and confidence, therefore helping managers determine the data-driven maturity level of their organization. At the same time, data stewards form the backbone of EDM data governance since they are the ones that influence how data is managed by assigning tasks to the specialists and are responsible for cataloging, defining and describing the governed data assets. Ultimately, employing data governance effectively will only continue to drive growth in the finance industry.