Data isn't just power – it’s the lifeline that fuels business decisions, drives innovations, and shapes strategies.
It holds the key to understanding customers and market trends. Making the most of this information is crucial for improving customer experience and enhancing business productivity.
However, businesses often find it difficult to effectively manage and govern the vast amounts of data they hold.
But what is the difference between data management and data governance? And how can your business utilize them in tandem to succeed in a data-driven era?
Data management is focused on organizing, securing, and retrieving information in a way that makes sense. Well-managed data streamlines processes, encourages collaboration, and provides your business with reliable insights.
Data governance is about setting rules for managing your data. It addresses data ownership, usage, and quality while meeting privacy and security standards. The goal of data governance is simple: to make sure your data is accurate, consistent, and secure, following the rules set by regulators and your own policies.
Essentially, the two go hand in hand. While effective data governance should be your business's ultimate goal, you must start with a strong foundation in data management.
You can’t have good data governance without good data management.
Failure to manage your data effectively will completely throw off data governance. That is why your business must start with data management.
Here are the potential consequences for your business if you have improper data management:
Poorly managed, inaccurate data will lead you to chart a flawed business plan based on bad decisions. This could lead to wasted resources, missed market opportunities, and, ultimately, strategic missteps.
When your employees are drowning in duplicate data and wasting precious time sorting through the mess, they won’t have time for productive work. Ineffective management destroys productivity and keeps your business from growing.
Poor data management can expose your business to security risks and even data breaches. This would result in non-compliance with regulations, leading to legal issues and fines.
Mishandling of customer data is like breaking a sacred vow. It fractures your reputation and erodes trust, leading to client disengagement and a tarnished brand image.
If you fail to manage your data properly, your business is bound to lose ground to competitors that use analytics to unlock groundbreaking insights and fuel future success.
Bad data management slowly eats away at your revenue and bloats your expenses. Your business ends up incurring expenses for storing duplicate or irrelevant data that do not contribute to its growth.
Inconsistent data management leads to poor decisions, but insufficient data governance can get your business in trouble with regulators.
On the other hand, good data governance can help you make better decisions, innovate, and increase profits. It’s all about making sure your data is accurate and reliable so you can make smart choices.
Follow these simple practices for effective data governance:
Begin with a practical workload, ensuring a smooth transition as you gradually scale your data governance efforts.
Form a committed team equipped with the necessary skills and resources dedicated to your business’s data governance program.
Define transparent objectives for your data governance, communicating them clearly with your team and stakeholders.
Provide stakeholder transparency by openly communicating with external partners, building trust, and ensuring alignment.
Integrate data governance into every department, creating a collaborative and cohesive approach.
Recognize and address risks at key points in your data governance program, mitigating potential threats to its success.
Assess your projects upon completion, identifying areas for improvement and learning from both successes and failures.
Continuously refine your governance framework to keep it up-to-date and aligned with your business’s evolving needs.
Data management and data governance can be tricky, taking precious time and specific expertise. That’s where Clearview Group’s Managed IT services comes in.
As your trusted IT partner, we get the ins and outs of data management and data governance. We’ll work directly with your business leaders and employees to ensure your foundation is set in proper data management.
We’ll also be your strategic partner in guiding you through implementing proper data governance, with quarterly reviews to address pain points and identify solutions.
This is included in our all-in-one outsourced IT package – giving you peace of mind knowing your data is secure so your business can run smoothly.
We are a full-service management consulting and CPA firm covering all aspects of audit, compliance, risk management, accounting, finance, tax, IT risk, and more. Just let us know what you need help with and an expert will be in touch!
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