17 Mar What is data governance and why you should implement it in your business
What is data governance?
Data governance is essential in today’s business environment due to the large amounts of internal and external data captured by organizations. But what exactly is data governance? It is the set of processes, functions, policies, standards and measurements that guarantee the effective and efficient use of information with the sole purpose of helping companies achieve their objectives.
The implementation of this type of business strategy maximizes the value of data, reduces costs and better manages potential risks. In addition, it ensures the quality and security of information and makes it possible to define who can take action, on what data, under what circumstances and by which methods.
Data is a key factor in any entity and the ability to process this data has become essential. That is why data governance is included in article 24 of the GDPR (General Data Protection Regulation).
Article 24 of the GDPR (General Data Protection Regulation)
The Organic Law on Personal Data Protection and guarantee of digital rights (LOPDGDD) establishes the requirements and obligations of companies on how to proceed with personal information, as well as the rights of users and consumers. Likewise, article 24 includes the technical and organizational measures that the person responsible for the organization’s information must consider, in order to avoid possible risks to natural persons.
To guarantee the protection of data, personal rights and freedoms, the business strategy and the implemented regulations must be reviewed to ensure that they comply with current regulations.
Advantages of data governance
A good governance strategy, of any type, requires setting clear objectives and contemplating the five key points: identity, access management, compliance with data security standards and regulations that govern systems. Thus, if the governance is applied to citizen developers, they will be much more agile and will contribute to improve the efficiency of the organization and its data management.
Thus, if a governance strategy is adequate and companies have accurate, up-to-date and reliable information, it will have a positive impact on all areas of the organization, from operational processes to intermediate processes and even in decision-making. The advantages include:
1. Shared understanding of data and improvement of its management.
Applying data governance provides a uniform view of the information, making it accessible to all business units trained to manage the data. In addition, codes of conduct and best practices are created to ensure that data processing is appropriate.
2. Higher quality information.
Data governance strategies guarantee the accuracy, completeness and coherence of data, ensuring that the information used by the company will be good quality.
3. Structuring in data maps.
This discipline allows you to create a common repository where you can group the data and the relationship between this data, divided into hierarchies, relationships and graphical diagrams. The data maps allow us to understand the location of the data corresponding to key entities, an essential aspect in data integration.
4. 360 view of customers and other companies.
Data governance establishes a framework for an entity to agree on a “single version of truth” for other businesses and thus achieve an appropriate level of consistency between businesses and business activities.
5. Consistent regulatory compliance.
The implementation of data governance is the ideal step to ensure compliance with information-related legislation, such as the GDPR or other sectoral regulations, such as data security standards for payment cards.
Likewise, data governance allows companies to have a greater scope of information, make well-founded decisions in an agile way, undertake projects with greater confidence and analyze consumer desires and behaviors. Thus, it is proven that applying data governance in a company is essential, not only for compliance with the law but also for the benefits generated by converting data into valuable information.
“Data privacy has become a fundamental issue in recent years and more and more regulations are being added to force organizations to focus on this issue”
Data governance tools
For data governance to become a truly competitive strategy, it is important for the organization to use appropriate tools capable of managing large volumes of data. To do this, it is essential that a thorough comparison is made between the available software that best suit the company’s needs.
Achieving the benefits foreseen in the governance strategy is simple if you use tools that fulfill the following functions:
- Automatic data capture and analysis.
- Periodic data validation, review and update to guarantee the quality of the information.
- Data documentation and management to increase its relevance, facilitate the search, accessibility and legal compliance.
Data governance is not optional for companies. At present, with the advancement of technologies and digital transformation, the amount of data stored and its business value is so great that the implementation of this type of strategy is a must. Organizations must guarantee the quality of information, the security of user data and compliance with legal regulations.