Yet, getting to the point of value is easier said than done.
A new report, Transforming data Into action: The business outlook for data governance, developed by the Economist Business Unit, explores the challenges and opportunities for data governance across a range of industries and geographies.
The research, spanning 500 senior executives across Europe and North America show that nearly all business executives consider data essential to meeting heir companies strategic challenges.
Yet, for many, data governance is still focussed on tactical initiatives including legal and compliance requirements and privacy concerns.
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These defensive approaches to data governance are delivering tremendous value – both through reducing the risk of penalties and through cutting the costs of compliance.
Yet, organisations that are able to make the shift from purely defensive to a blended offensive and defensive data governance approach are achieving greater success in the market place, and receiving a higher return on their data governance investment.
Simplistically, data governance can help your business to understand the data impact of compliance programs and delivers the decision making and record keeping capabilities to cost effectively prove compliance. But all else being equal this will not transform your business.
Too much focus on risk can drive a “lock-down” of data – keeping critical data away from people who could use it to drive value.
A balance between offensive and defensive data governance helps to move business into realm of achieving competitive advantage – most tellingly though the use of advanced analytics and even machine learning to deliver new insights about the business for decision makers.
For top performers, data accuracy and the ability of data to contribute to strategic goals compete with compliance initiatives as key metrics of successful data governance.
New technologies: such as blockchain, cloud computing, artificial intelligence and IoT; are expected to increase the strategic importance of data governance as they create additional opportunities to exploit data.
The report, which can be downloaded by clicking on the image or inks above (registration required) goes into detail on the opportunities and challenges of modern data governance.
Data governance is making the shift from a supporting function to a central role.
As it does so, the executives leading data governance initiatives are becoming central role players in driving corporate strategy,