We all agree that there is value in data. Just look at the 40% year-over-year growth in the amount of data we collect and utilize.
To those of us focused on the field of data governance, while both fascinating and encouraging, it is also concerning — what will it take to address this accelerated growth? To answer this question, let’s take a closer look at the increasing importance of data governance, and the critical roles it plays in data-driven enterprises.
When privacy compliance is combined with customer trust, the result is pure business value.
Table of Contents
Sustaining Privacy Compliance
Privacy laws have been around for a while, but in 2018, GDPR started a chain of privacy laws around the globe, which has become a focal point for authorities and consumers alike. New privacy regulations are popping up everywhere, drawing inspiration from groundbreaking laws like GDPR and CCPA.
Authorities demand that companies offer detailed accounts of the personal data they collect and how it is used. At the same time, customers have been given rights to access, update, and delete information, as well as withdraw permissions. Companies that fail to comply with these regulations end up paying hefty fines and drawing the worst type of attention to themselves.
What is the importance of data governance, if not the sure path to sustained compliance – for every person, and action, across the organization. It is also critical for the data governance tools companies use, to be agile, in order to easily adapt to, and keep up with, new regulations. Data governance is essential for sustaining compliance and protecting companies from breaking the rules (and the bank!).
Building Customer Trust
Authorities can be very demanding, but users are the harshest regulators. The way organizations treat their data significantly impacts public sentiment and the company’s reputation. Mistreating customers’ data, or failing to provide sufficient transparency regarding its use, is bad for business.
On the other hand, the importance of data governance is revealed when companies are able to deliver fast answers to users’ real-time data inquiries – becoming data heroes that enjoy enhanced customer trust and loyalty. Companies that act responsibly by using data masking and encryption to protect sensitive and private data, make their constituents feel safe – and drive more business from existing, and new, customers.
Go beyond data governance, by turning data into profit.
Delivering Business Value
As the previous point hints, delivering business value is central to the importance of data governance. Data can help organizations make better decisions. Companies that have mastered data governance can go beyond compliance, by turning data into profit. Real-time alerts when users are about to churn can trigger proactive offers and incentives to stay. Personalized experiences, based on user preferences, can promote engagement, while increasing customer lifecycles.
Since data is typically managed by data teams, data governance tools based on business entity models can play a critical role in breaking down the boundaries between business teams and data analysts. By making data comprehensible and business-focused, the teams are unified around common goals and achieving targeted business outcomes.
Focusing on what’s Important when Choosing a Data Governance Solution
To make the most out of the advantages mentioned here, companies must choose technology solutions with business in mind.
These data governance tools must be:
- Agile and non-invasive, complementing your existing infrastructure.
- Real-time, to power high-scale digital business.
- Quick to adapt, to keep up with constantly chaning regulations, policies, and trends.
- Business-oriented, to bridge the gap between IT and business teams.
By focusing on these requirements, organizations can unlock the potential and the true importance of data governance – sustaining compliance, building trust, and delivering business value.