In the world of Big Data, effective data governance has emerged as a critical aspect of running a profitable business. Data-driven companies provide data standards and policies under which they carry their data management practices. This describes data governance in simplified terms.
Whether a company is making the most of the data they gather depends upon their data governance strategy. They can only derive profits from the data they collect, analyze, interpret, and present if the data is accurate, reliable, consistent, and accessible. This is where data governance becomes an essential component of a successful business.
Here are 5 benefits of effective data governance and why your company’s data governance strategy is so important:
The most important function of data is allowing business leaders to effectively make lucrative business decisions. When data is accurate, trusted, and well-governed leaders can make sound and informed business decisions for the company. Data also enables them to make time-sensitive decisions when necessary.
The same applies to managers across many departments, responsible for making decisions on marketing promotions, product or service strategy, price adjustments, etc.
Improved Data Quality
Several companies struggle due to the poor quality of data they collect. Some firms suffer significant losses due to poor quality of data, as reflected in a 2020 Gartner survey. With a quality data governance strategy in place, you can ensure you are making decisions based on quality and consistent data. An effective data governance framework can help improve the data quality and analytics accuracy, as well as reduce operational errors.
With an effective data governance strategy in place, companies improve operational efficiency in several ways. Data governance strategies can identify what type of customers are best for your business, and influence sales and marketing investments.
This allows you to understand product profitability and can influence you to invest in the most profitable products. Opportunities, as well as threats, become obvious if your data is well-governed by proper mechanisms.
Improved Business Performance
With improved data quality, decision making, compliance, and efficiency provided by data governance, improved business performance naturally follows. Companies with quality data governance are more likely to detect and prioritize critical data assets.
Improved Business Reputation
We have established the financial success your company can experience with well-governed data, but public image can also be improved. Every company strives to be viewed positively by their current customers and potential customers. This can be made possible with effective data governance. Your sales reps and customer service agents will be able to engage in improved interactions with your customers, thanks to high-quality data.
With good interactions, your customers will be more satisfied with your services. This can inevitably lead to increased customer loyalty.
If you are unsure about your data governance strategy, it is a great time to consult a governance consulting firm. A consultant can provide you insightful solutions on how you can improve governance of your data.
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