A rapidly changing business landscape is putting pressure on data leaders to deliver insights and artificial intelligence while, at the same time, improving operational efficiency and cutting costs.

These were the stand-out findings of the 2025 Data Integrity report.

1. Why Data Governance Matters for Cost Savings
   1. 1. Streamlining Data Operations (DataOps)
   2. 2. Reducing Data Redundancy
   3. 3. Enhancing Data Quality
   4. 4. Compliance Cost Savings
   5. 5. Optimizing Resource Allocation
   6. 6. Leveraging Cloud Benefits
   7. 7. Ensuring Data is AI-Ready
   8. 8. Avoiding a Short-Term Mindset
2. Conclusion
   1. References:

While the potential benefits of data are immense, many organizations are hindered by their inability to effectively manage data costs. And ironically, according to a recent 2024 report by the RAND Corporation, a staggering 80% of AI projects fail, double the failure rate of traditional IT projects.

One factor often overlooked is data governance. By establishing strong data governance practices, organizations can significantly reduce IT and cloud costs, enhance data quality, and improve overall operational efficiency.

Why Data Governance Matters for Cost Savings

Data governance, often seen as a compliance or regulatory requirement, is much more than that. It’s a strategic approach to managing and protecting an organization’s data assets.

By implementing a robust data governance framework, organizations can achieve significant cost savings in several key areas:

1. Streamlining Data Operations (DataOps)

• Automation: Automating routine tasks like data integration, validation, and reporting reduces labor costs and minimizes human error.
• Efficiency: A well-governed data environment improves the overall efficiency of data operations, leading to faster time-to-insight.

2. Reducing Data Redundancy

• Eliminating Duplicates: Identifying and eliminating duplicate data reduces storage costs and simplifies data management.
• Consolidating Systems: Consolidating data into fewer systems can lower software licensing and maintenance costs.

3. Enhancing Data Quality

• Improved Accuracy: Strict validation processes ensure data accuracy, reducing errors and improving decision-making.
• Cost Reduction: High-quality data leads to better business outcomes and reduces costs associated with poor data quality.

4. Compliance Cost Savings

• Avoiding Penalties: Data governance helps organizations comply with regulatory standards, preventing costly penalties.
• Reduced Compliance Costs: Effective data governance can reduce compliance-related IT costs by up to 30%.

5. Optimizing Resource Allocation

• Efficient Storage: Data retention and archiving policies help avoid unnecessary long-term storage costs.
• Cloud Cost Optimization: Data governance enables organizations to optimize cloud spending by managing workloads dynamically.

6. Leveraging Cloud Benefits

• Optimized Cloud Spending: Data governance enables efficient resource utilization by dynamically managing workloads based on actual needs.
• Reduced Unnecessary Data Movement: Sound access management and usage policies minimize data transfer costs.
• Enhanced Security and Compliance: Centralized tooling through cloud governance strengthens security and ensures compliance with regulations.

7. Ensuring Data is AI-Ready

• AI Success: High-quality, accessible, and secure data is essential for successful AI initiatives.
• Mitigating Risks: Data governance helps mitigate risks associated with AI, such as bias and ethical concerns.

8. Avoiding a Short-Term Mindset

• Reducing technical and data debt: A short-term mindset to IT and data projects is a barrier to innovation that leaves organisations with significant technical and data debt that increase complexity and operational costs
• Strategic alignment: Sound data governance ensures that data initiatives, such as AI, are aligned with overall business objectives, are optimally prioritised, and increase reuse and reduce overall costs while reducing technical and data debt

Conclusion

By implementing effective data governance, organizations can transform their data management practices from a cost center to a strategic asset. This approach not only drives cost savings but also empowers businesses to make data-driven decisions, improve operational efficiency, and achieve long-term success.

Are you ready to unlock the cost-saving power of data governance?

Let’s discuss how we can help you implement effective data governance strategies to optimize your data operations and drive business success.

References:

2025 Data Integrity report, Precisely and Drexel University’s LeBow College of Business

The Root Causes of Failure for Artificial Intelligence Projects and How They Can Succeed, The RAND Corporation