Unlocking business potential through strategic data governance

We are working in a world where digital transformation is happening at pace with technology rapidly transforming our lives and work. With that, data governance has emerged as a key priority for business leaders. Why? Putting it simply, there is an immense amount of data being created but many organisations struggle to manage data effectively due to fragmented systems and limited expertise.

In addition, governments and regulatory bodies are tightening oversight to protect personal information. This means organisations are having to navigate a complex web of regulatory requirements, with non-compliance leading to substantial fines and reputational damage.

We conducted some research recently and found that businesses are increasingly recognising that robust data governance is not just a regulatory necessity but a strategic asset. The findings revealed that 83% of organisations also view data governance as a key factor in gaining a competitive edge, enhancing service delivery, and ensuring robust compliance and security.

Despite these benefits, businesses still face several challenges, including integration difficulties, scalability issues, and data quality concerns when it comes to implementing effective data governance. To overcome these challenges and improve data governance, businesses should consider asking themselves the following three questions:

Do we have the right data governance skills and team in place?

A dedicated data governance team is essential for enhancing data practices and plays a critical role in maintaining data integrity and ensuring compliance. Ultimately this is the team who are responsible for monitoring and ensuring compliance with internal policies as well as external regulations.

Interestingly, only half of the businesses in our recent research said they had specialised teams to manage data and mitigate security risks. In addition, nearly 75% of organisations manage data governance internally, particularly in sectors like healthcare.  What is critical however is having well defined goals, good communication and people in the team that not only have a passion for data but have the right mix of skills from across the business.

What data governance frameworks do we have?

A well-defined data governance framework is crucial to ensure data accuracy and minimise the many negative effects of data silos. Key components of a robust framework include understanding your data landscape, establishing clear ownership, and enforcing stringent governance policies.

Regular updates to these frameworks are also essential. According to our research, 46% of businesses review their data governance policies annually, 47% do so more frequently, and 6% maintain continual review.

Are we investing in the right technology?

Effective data governance requires the right technological investments. Our research indicates that most businesses plan to invest significantly in data governance strategies over the next two years, focusing on high-quality technologies, internal data literacy, and automation.

Automation is a significant focus. Roughly half of those surveyed said they were already using automated tools and technologies, while 48% are currently exploring what they could use for automation.

It will be no surprise that AI and Generative AI are expected to increase the importance of data governance and helping to drive it forward. Our research showed that nearly 75% of businesses view data governance as fundamental to optimise AI capabilities. For AI models to function effectively they require relevant, complete, accurate, and clean data.

Moving forward

Overall, the research showed that 86% of businesses acknowledge the increasing importance of data governance in the coming years. To be successful in driving effective data governance, and meet growing regulatory requirements, organisations must address foundational data quality, data integration, scalability, and technology advancements.

A successful data governance strategy can start by asking those three questions – and revisiting them regularly. So that businesses can leverage data governance to gain a competitive edge and effectively manage emerging risks in an increasingly data-driven world.