How to Implement a Data Governance

September 19, 2024

Did you know that poor data quality may cost your business an average of $12.9 million annually? Many companies face challenges like compliance issues, security breaches, and slow processes. Data duplication and inaccuracies can lead to incorrect decisions and lost opportunities. 

Data governance addresses these issues, that’s why it is a top priority for 65% of data leaders. Frameworks like Adobe Experience Platform offer Real-Time CDP and Journey Orchestration features to streamline data management and improve customer experiences. 

This article explains how to implement an effective data governance framework.

Why Data Governance Is Important?

Data governance sets data policies for handling data. These internal rules regulate how data is collected, stored, processed, and disposed of. They also determine who can access specific data types and outline the governed data.

Without data governance, what can happen? Let’s say you face data inconsistencies. For example, a customer’s name is recorded differently across different departments. It’s impossible to integrate inaccurate data. Unnoticed data errors will further undermine the credibility of your analytics.

With a strong data governance program it wouldn’t happen. This framework establishes standard data definitions and formats for all.

Why You Need to Govern Data

  1. Regulatory Compliance

If you don’t comply with regulations, you risk fines and losing customer trust. 

  1. Data Quality

Effective data governance helps everyone in the organization stay on the same page and simplifies decision-making.

  1. Data Security

With cyber threats lurking everywhere, protecting sensitive information is a must. Access controls and encryption help keep data safe.

  1. Risk Management

Effective data governance helps identify and manage risks, such as data breaches or critical data loss.

  1. Data Privacy

Customers become more concerned about their privacy. Data governance ensures responsible data usage.

  1. Operational Efficiency

Clear guidelines and roles streamline data management and reduce misunderstandings and redundant work.

  1. Accountability and Transparency

Data governance creates a clear record of who did what and when, so everyone knows their responsibilities regarding data.

  1. Facilitating Data Integration

Data usually comes from different sources, and data governance unifies it: ntegrates this data and breaks down silos.

  1. Strategic Decision-Making

Accurate and complete data is the backbone of decision-making. With data governance, businesses can trust the data they use for planning and strategy.

10.Fostering a Data-Driven Culture

Data governance encourages everyone in the organization to use data in their decision-making. It cultivates a culture where data is a crucial tool for success.

How to Implement Data Governance Implementation Strategy

Here’s a simple guide to set up a successful data governance program step by step.

1. Define your data strategy and goals

2. Establish a data governance framework

3. Define required data governance level

4. Implement data governance program

5. Choose the right tools

6. Define roles and responsibilities

7. Monitor and measure data governance effectiveness

  1. Define Your Data Strategy and Goals

Decide how you want to use your data. Your goals will shape your data governance approach. For example, if customer service is a priority, focus on data related to customer interactions and feedback.

  1. Establish a Data Governance Framework

Create guidelines for handling data in your organization, including how to collect, store, and protect it. Start by categorizing data (e.g., customer information, financial records). Then, develop policies for data access, retention, and sharing. Make sure these policies are followed to keep data consistent and secure.

  1. Define Required Data Governance Levels

Determine the level of governance needed based on data sensitivity and importance. For example, data protection needs vary: customer data requires stricter controls than internal sales data. It helps focus on data protection efforts.

  1. Implement the Data Governance Program

Put your framework into action. Set up committees, assign roles, and create workflows for managing data. Create a data privacy team to manage and protect data. Clear communication means everyone knows their responsibilities.

  1. Choose the Right Tools

Select tools to support your data governance efforts. Cataloging, metadata management, and data quality management are essential to any business. For example, Adobe Experience Platform provides solutions for data management and analytics. Advanced security features (encryption and role-based access controls) protect data and ensure compliance. The platform supports real-time data processing and includes  governance tools. It integrates with other Adobe tools easily to enhance functionality.

  1. Define Roles and Responsibilities

Outline who handles different aspects of data governance:

  • Data Administrators: Manage the implementation and upkeep of the program.
  • Data Stewards: Connect business units with IT, ensuring data is accessible and reliable.
  • Data Custodians: Handle technical data management, including security and storage.
  • Data Analysts and Scientists: Analyze data to generate insights and support decisions.
  • Data Users: Use data to make informed business decisions.
  • Marketers: Request data for market analysis and strategy development.
  1. Monitor and Measure Data Governance Effectiveness

Measure data governance effectiveness with KPIs (e.g. data quality, compliance, security). Regular audits confirm compliance with standards and highlight areas that need improvement.

Benefits of Implementing Data Governance

Here’s how a sound data governance implementation can benefit your business:

  1. Data Democratization. Data governance speeds up processes. For example, your sales team sees real-time inventory data and responds quickly. Teamwork is also improved, as everyone has the information they need.
  2. Improved Decision-Making. Data governance removes barriers between departments, the information is shared quicker. For example, marketing and sales teams use the same customer data. In coordination, data turns into actionable plans that drive growth.
  3. Data Quality. Consistent and accurate data is crucial; in healthcare, for example, it affects people’s lives. Data governance sets clear rules for data entry that reduce errors. Thanks to such important information as patient records, it is always accurate and up-to-date.
  4. Data Access Control.  Data protection is a top concern and priority. Systems like Adobe Experience Platform use attribute-based access control (ABAC). It sets data access permissions based on job roles. For example, only authorized staff can access sensitive financial data in financial services. Such measures keep your data secure.
  5. Regulatory Compliance. Data governance standardizes data handling and enforces data protection policies. It reduces legal risks and enhances your company’s reputation.
  6. Risk Management.  Data governance protects against data breaches and unauthorized access. For example, strict data access controls and encryption are must-have in banking. Backup strategies ensure you’re prepared for any data loss or cyber-attacks. 

Factors to Consider When Implementing Data Governance

When setting up data governance for your business, there are a few key factors to keep in mind:

  • Range of Features and Capabilities

Think about what features you need. If you’re running a retail business, you definitely need systems that can protect customer data and keep it accurate — this builds trust and keeps you on the right side of regulations.

  • Ability to Accommodate Growth

Choose a system that can grow with you. If you’re a growing startup now, you may expect way more 

data and users in a few years. Pick a tool that can handle that growth without a hitch.

  • User-Friendliness

A data governance system exists for everyone in a company, not only for tech specialists. In healthcare, for example, an intuitive system helps medical staff find patient information quickly, which is crucial in high-pressure situations.

  • Adaptability and Customization

Your business is unique, and your data governance system shouldn’t be one-size-fits-all. For example, in finance, you need to set up specific data access controls to meet compliance standards like anti-money laundering laws. Make sure your chosen system can be customized to fit your unique needs.

  • Cost-Effectiveness

Weigh the costs against the benefits. Small businesses might opt for a cloud-based service that offers must-have features without breaking the bank. It’s all about finding that sweet spot where you’re getting great value for your investment.

Check out the product roadmap of any data governance tool you’re considering. It provides a clear vision of what’s coming next (future updates or new features). It helps to understand if the tool will continue to meet your needs as your business and regulations arise.

Wrapping It Up: 

Your data is a strategic resource; it’s a key to driving business success and decision-making. Data governance acts as a facilitator for your data. Investments in data governance will bring you maximum returns.

If you doubt where to start with data governance, we’re here to help. Axamit offers expert guidance to harness the full potential of your data.

Ready to take control of your data? Book a consultation today.