Unfocused Data

There are so many reasons why businesses are not focusing on Data Governance, but I think the main one is that the Executive teams really does not understand what Data Governance is and it’s benefits. Based on my experience and what I have been observing is that most businesses are focused on getting their systems (separate transactional system(s)) up and running so that their businesses are making money and they are processing their customers through some type of sales life cycle. I truly understand that mentality but your business does have to grow down the road. If businesses cannot fully understand the data that they are collecting from those transactional systems and how it ties back into their business strategy, I believe they are building a black hole within their business.

Another big reason I hear businesses are not doing Data Governance is because of the cost. Let me say plain and simply that statement is just not true, Data Governance can be implemented in phases and the ROI can been seen much quicker as long as you have Executive by in, do not under estimate the total amount of work, do not get bogged down with meetings and process discussion without any hands on work. Lastly make sure you understand that within a business definitions of terms may vary based on what department is defining the business term.

With so many business are under competitive pressure and the desire for financial transparency and regulatory compliancy with HIPPA and Sarbanes-Oxley you would think those business would drive Data Governance into their culture.

Below are some things that businesses will not be able to do without Data Governance:

  • Trust. Data Governance can give the business more trust in the data they are collecting and then what the data is telling the business. Be transparent on why and how you are collecting customer information, sharing that information and especially on how your are protecting that information
  • Identify areas that can be automated. You can reduce manual effort or completely get rid of time consuming processes that are done by your employees. A lot companies do not have an idea that there are employees spending a lot of time manual working with data and not spending their days doing what the actually were hired for.
  • Use data to retain more of their customers. Information from a acquisition and retention study existing customers are 51% more likely to try new products and spend 31% more than new customers.
  • Create consistency and make better decisions through out the business. When different parts of the business are using different data sets problems will ensue into the business. Data Governance can enforce a process where all employees are using the same consistent information
  • Strengthen your ROI. The impact Data Governance can have on a business’ ROI is tremendous for all the above reasons and more. When you apply Data Governance around the collecting of information on what your customers are doing what motivates you then have knowledge on what they want to buy.
  • Remember Data Governance is not about technology it is about defining, implementing and enforcing policies and processes for how information is generated, stored, maintained, and used across the entire business.

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