Data Governance

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The Role of Data Governance

in an Organization

Neera Bhansali

INTRODUCTION

In today’s fast-paced global economy, changes in the environment result

in new opportunities for wealth creation that decision makers use in strat-

egy formulation and implementation. Organizations have grown global by

not only expanding businesses and setting up branches overseas, but they

have grown global in a dierent kind of way—leveraging on knowledge

tapped globally rather than merely growing outward from a domestic

base. In organizations, information from various departments and func-

tions, as well as formal and informal sources of information, are bought

CONTENTS

Introduction ........................................................................................................1

e Need for Data Governance ........................................................................2

Place for Data Governance in Organizational Strategy ................................. 3

Data Governance across Intrarm Networks .................................................4

Data Governance Characteristics of Organizations through eir

Life Cycle .............................................................................................................5

Data Governance Program ................................................................................7

Benets from Data Governance .......................................................................9

Data Quality and Data Governance Process .................................................10

Data Governance and Master Data Management ........................................13

Managing Risk with Data Governance ..........................................................13

Information Governance and Cloud Computing ........................................14

Conclusion ........................................................................................................15

References .......................................................................................................... 16

Further Readings ..............................................................................................16

2  •  Neera Bhansali

together to detect and interpret problem areas, identify opportunities, and

implement strategic objectives. Strategies dene the purpose of organi-

zations, the competitive domain of rms, and the resource commitment

these organizations make to achieve and sustain competitive advantage.

Hence, developing an appropriate data strategy that ts the marketplace

is one necessary ingredient for business success. Eective data governance

reduces uncertainty and helps improve an organization’s performance.

Anorganization’s ability to collect pertinent information and act on sig-

nals that others miss provides it a strategic advantage.

THE NEED FOR DATA GOVERNANCE

In the twenty-rst century, organizational business is supported by data

and information in many ways and forms. A large part of data generated

today is in the form of electronic or digital data. For example, high-volume

transaction processing systems (nancial or accounting systems) gener-

ate reports, statements, and electronic checks; analytical systems produce

documents, spreadsheets, forecasting models, visual images; marketing

and planning systems generate emails, Web pages, XML from the Web or

corporate intranet, and so forth. Data resides in databases, les, and other

media. All this data needs data management to identify, categorize, pre-

serve, and retrieve data when required for business purposes or regulatory

needs. A rule of thumb oen used is that corporate data volumes double

every 18 months. However, mobile and online data are growing at an even

faster rate. From cost containment, regulatory compliance, strategic ini-

tiatives, and beyond, the need for businesses to manage proliferating data

is becoming even more urgent.

Maintaining an ever-increasing volume of data, processing it, and

deriving information from it to meet the competitive needs of the mar-

ket requires not only good data management practices, but a data gover-

nance process as well. Eective data governance improves data safety and

security, improves data quality, and ensures compliance with data-focused

regulations as well as helps an organization manage and use its data eec-

tively. It increases data consistency, increases accountability for the orga-

nization’s data, and improves decision making. Data governance must be

a business-driven program that uses a data-governance maturity model to

build a strategic road map.