Truly data-driven companies see significantly better business outcomes than those that aren’t. According to a recent IDC whitepaper, leaders saw on average two and a half times better results than other organizations in many business metrics. In particular, companies that were leaders at using data and analytics had three times higher improvement in revenues, were nearly three times more likely to report shorter times to market for new products and services, and were over twice as likely to report improvement in customer satisfaction, profits, and operational efficiency.
But to get maximum value out of data and analytics, companies need to have a data-driven culture permeating the entire organization, one in which every business unit gets full access to the data it needs in the way it needs it.
This is called data democratization. Doing it right requires thoughtful data collection, careful selection of a data platform that allows holistic and secure access to the data, and training and empowering employees to have a data-first mindset. Security and compliance risks also loom.
The data democratization process, when implemented appropriately, has transformative potential. However, as companies navigate this journey, there’s a critical component to consider – data governance.
Data governance plays a crucial role in supporting data democratization. It provides the structure needed to ensure that data is managed in a way that is compliant, secure, and adds value to the organization.
Without a robust data governance framework, data democratization can lead to chaos and misuse of data. A well-established governance framework helps prevent these issues by defining clear guidelines on data access, use, and distribution. This framework ensures that while every business unit has the freedom to leverage data, they do so responsibly and ethically, taking into account the privacy and security requirements.
Data governance also promotes data integrity and quality. By standardizing data collection, processing, and usage practices, it ensures that the data available to all departments is reliable and consistent. This aspect is crucial as companies strive to make data-driven decisions.
Mitigating Security and Compliance Risks
The risks related to security and compliance in data democratization can be significant. Data breaches, non-compliance penalties, and misuse of sensitive data can harm a company’s reputation and financial position.
Data governance helps mitigate these risks by enforcing stringent security measures and ensuring that the company’s data practices are in line with relevant regulations. It sets the standards for data privacy and protection, ensuring that data access and usage don’t compromise the security of sensitive information. Websites like https://privacera.com/blog/data-governance-101-what-it-is-and-why-its-critical-to-your-business/ can help understand what Data governance is and how it can help a business.
Data governance aids in regulatory compliance. With the advent of regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), it’s essential for companies to have strict control over how they collect, store, and use data. A well-implemented data governance framework ensures that all data practices are compliant with these regulations.