DATA GOVERNANCE
Why Data Governance is Important
To start with data is the most important assets that any organization can ever have. Data
governance does not only ensure data is secured but also usable and accessible. Second data
governance leads to better data analytics which in turn leads to improved organization operations and better decision making. Third important point is that data governance assists in avoiding data errors or inconsistencies which can lead to integrity issues, variety of organization issues, and poor
decision making. Forth data governance plays an essential role in regulatory compliance, this ensures that organizations are consistently compliant with all levels of regulatory requirements. At its core data
governance leads at a reduced data management costs, increased access to data for all stakeholders,
and decreased data management costs. The result is a better decision making within an
organization and better business outcomes.
Other benefits of data governance
❖ It results to a more accurate procedures
❖ Assist in instituting better educational and training practices around data management
❖ Overall organizational growth
❖ Better resolution of current and past data issues
❖ Ability to provide standardized data policies, procedures, and systems
❖ An improved monitoring and tracking mechanism for data quality
Consequences of Poor Data Governance.
❖ Poor decision making: A decision can’t be better if information which is based upon is of
poor quality. Poor data quality leads to poor decisions.
❖ Loss of revenue: Poor data quality resulted to lack of data governance can lead to loss of
revenues in many ways. Example communications in maybe a certain organization can
fail to convert to sales just because of underlying customer data being incorrect. Poor
information can result to in inaccurate communications and targeting especially it is
detrimental in multichannel selling
❖ Missed opportunities: An organization can miss a lucrative opportunity for a new product
or customer to competitor due to lack of managing their data. Organizations which are
well established in the market needs to capitalize on data that they have.
❖ Business inefficiencies: Poor data quality can cause inefficiencies in those organization
processes which depend on data from reports to ordering products juts because they is
lack of the correct facts about data. This inefficiencies can result to expensive re-work as
one tries to fix these data errors and validating data instead of focusing on the core duties.
❖ Mistrust: Poor quality of data creates mistrust especially in those industries where
regulations govern relationships or trade with certain clients like finance. Maintaining
good data quality can result to increase of revenue and prevent loss of huge amount of
money. If data is wrong then time, reputations and money can be lost which in turn
lowers customer confidence.