When it comes to data governance, the first considerations should be the company, its organizational structure, processes and the responsibilities that need to be defined before the right software can be deployed.
This is mirrored in the five most common reasons of failing data governance initiatives:
- Too much at once (or too little)
- Lack of support from management
- Lack of communication and change management
- Unclear goals
- Focus on tools, not processes
Data governance is an organization-level program
Why data governance
Data governance refers to management or control of data through overarching rules, such as data policies, guidelines and the creation of specific structures. The goal of structured data management is to ensure the availability, usability, integrity, security and confidentiality of information.
Learn more about master data governance
Data governance is nothing new. However, it’s still a challenge to many companies of which some are reluctant to engage in what they believe is a tedious data clean-up and to accept the associated costs.
But here's why they shouldn't wait any longer:
- Bad data costs money. According to Gartner, “poor data quality costs organizations an average $12.9 million. Apart from the immediate impact on revenue, over the long term, poor quality data increases the complexity of data ecosystems and leads to poor decision making.”
- On the other hand, high-quality data can enhance your analytics, improve operational efficiency and lead to new business opportunities and higher customer satisfaction.
- The volume of data generated by businesses has risen significantly in recent years. According to the International Data Corporation (IDC), "The amount of digital data created over the next five years will be greater than twice the amount of data created since the advent of digital storage. The question is: How much of it should be stored?"
- Data has become critical to our society and our personal lives. Almost 90% of all data should be subject to a certain amount of security – but less than half is secured properly. What’s more, this data continues to become increasingly important. IDC estimates that, by 2025, almost 20% of global data will be critical to daily life, and almost 10% hypercritical, meaning it will have direct and immediate impact on the health and wellbeing of users.
- Legal requirements, such as the EU’s General Data Protection Regulation (GDPR), governs how companies capture, store and use the personal data of EU citizens. Any business that fails to comply with the GDPR may incur penalties, with potential fines of up to 20 million euros or 4% of a company’s annual global revenue.
- Risk mitigation: The issue of data protection is becoming a differentiation factor and is therefore becoming increasingly crucial to businesses. Any negative publicity in this context has a direct impact on a company’s customer base and turnover.
So, obviously, your data governance initiative can be very impactful and is definitely much needed. Despite this, many data governance programs fail at the first attempt (as many as 90%, according to Gartner). Why is this?
Get the infographic: Ten Useful Steps to Master Data Governance