While ensuring the reporting demands of regulators are met, there are other benefits to improved data governance and management born out of certain triggers:
Organizational alignment – Different groups within an organization need to communicate clearly and coordinate effectively with one another. They need to speak same language.
Data Quality, Master Data Management, and Data Migration integration – Data quality has four key dimensions: accuracy, completeness, consistency and lineage. Data quality standards, as evidenced through documentation, play a key role because an understanding of quality is essential if an organization is to use its data assets effectively. Challenges are abound. For example, inconsistent use of terminology rather than that describing underlying data.
Having high quality end-to-end source data is important but being able to manage that data across systems is essential. This is where Master Data Management (MDM) comes in. Essentially, MDM is a process that creates a uniform and single, authoritative set of data on customers, suppliers, products etc. that feeds into other IT systems within your organization. MDM initiatives and Data Quality are intimately linked. While it is possible to have a data quality initiative without considering MDM, the reverse is not possible. Every MDM implementation initiative must have a data quality component to it. Whether data acquisition, data dissemination or data migration.
Accountability and ownership of data – Ownership creates accountability. Assigning responsibilities ensures that owners will continuously monitor data for compliance. Across the organization, data owners, stewards and stakeholders are accountable for the quality, integrity, and protection of their data. They must be supported with technology to ensure its integrity.
Cost – Data governance initiatives can actually decrease business costs through improved resource and process efficiencies, digital rather than manual processes, improved automation, reduced complexities and improved technology.