A McKinsey survey of over 80 large global organizations found that the most common data challenges they face include incomplete, inconsistent, and inaccurate information. Besides those factors, organizational silos and insufficient technology infrastructure also proved to be a challenge, all of which are obstacles to good data governance.
Data governance has become an indispensable component of modern data management. It is an asset within an organization that ensures data is used in a responsible, efficient, and cost-effective manner.
Read on to learn more about best practices for the data governance framework and how it can help unify data management in your organization.
What Is Data Governance?
Data governance is a framework for managing an organization’s data that sets standards for how it is collected, stored, and used. By establishing clear guidelines, organizations can ensure that their data is accurate, complete, and secure. This involves defining access controls to restrict sensitive information to authorized personnel only.
Key Components of Data Governance
A good data governance framework defines how data is collected, organized, and utilized. Here’s a breakdown of each element in a data governance model:
- Data Policies and Standards: The clear rules and guidelines that outline how an organization should manage its data
- Data Quality Management: The act of monitoring data to keep it accurate, and consistent.
- Data Security and Privacy: Implementing measures to guard customer privacy by protecting sensitive information and maintaining compliance with regulations.
- Metadata Management: Organizing, maintaining, and contextualizing “data about data” to improve its utility.
- Data Stewardship: Assigning responsibility for data management to teams or individuals, ensuring oversight and accountability.
- Data Lifecycle Management: Monitoring data through all stages, from creation to deletion ensuring it is handled appropriately at each point.
- Access Control and Data Sharing: Establishing rules for who can access and distribute data internally and externally.
- Data Architecture: Defining structures that support consistent collection and usage of information across your operations, ensuring systems work together smoothly.
Why Is Data Governance Important to Your Business?
Proper data governance is important to your business because it helps prevent data-related errors, reduces compliance risks, and helps you stay consistent in how you handle data, use cloud technologies, and implement data-driven strategies. Let’s have a look at the reasons why this approach is essential:
- Improves Data Quality: Data governance improves the accuracy and reliability of the data you collect. Employees will have a clear picture of what data standards are to be maintained, saving time spent fixing errors or duplicating efforts.
- Ensures Regulatory Compliance: Following legal and industry regulations reduces your business’s risk of penalties since sensitive customer data is appropriately handled to meet privacy standards.
- Enables Data-Driven Decision-Making: A reliable data foundation helps your teams have access to quality data used to examine trends, identify opportunities, and guide important choices.
- Mitigates Security Risks: Proper governance decreases the risk of breaches and unauthorized access to sensitive information. When data is centralized, and it is handled with necessary oversight, it improves the protection of this vital asset.
- Supports Data Democratization: High-quality data is made accessible to authorized users across your company, ensuring teams can access relevant information for their roles and promoting a culture of insights.
- Improves Customer Experience: Better data management gives your business a comprehensive understanding of customers, enabling your team to serve them well through personalized, efficient interactions.
What Is Data Governance in the Cloud?
Data governance in cloud environments refers to managing the availability, integrity, security, and compliance of data hosted off-premises. As more of your data migrates to the cloud, adopting governance practices becomes crucial.
Here are some key aspects your business should focus on when doing governance in the cloud:
- Cloud-Specific Policies: Develop governance policies tailored to managing how data is stored, processed, and shared in cloud environments for consistent oversight of cloud operations.
- Multi-Cloud Strategy: Implement consistent governance practices across multiple cloud platforms and applications to ensure your workforce follows the same rules regardless of provider.
- Data Classification in the Cloud: Categorize cloud-hosted data based on sensitivity and regulatory requirements. Sensitive customer information requires additional protections.
- Cloud Data Security: Security is a top priority when storing data externally. Enforce encryption, access controls, and monitoring designed for cloud environments.
- Cloud Vendor Assessment: Evaluate cloud service providers for compliance with your governance standards and only partner with those meeting your expectations.
- Data Residency Management: Ensure your business adheres to all legal and regulatory requirements regarding where specific data is stored in the cloud. Certain sensitive customer information, for example, may need to remain within your country.
- Cloud Data Lifecycle Management: The workflow for governing information from when it is collected until disposition needs optimization. You can adapt retention, archiving, and deletion processes for data hosted in the cloud.
How Boomi Supports Data Governance in Cloud Environments
Data governance ensures data integrity, security, and compliance, especially as businesses transition services to the cloud. Cloud technologies provide flexibility, scalability, and real-time data management capabilities that can enhance governance. However, robust practices are needed across diverse and changing environments.
Boomi DataHub supports robust data governance in multi-cloud or hybrid setups. It provides centralized oversight and control for your business’s needs to apply consistent rules regardless of infrastructure. The solution has the following benefits and features:
- Centralized Data Repository: Boomi DataHub creates a single source of accurate information, enhancing all governance efforts by giving your employees one complete view of data.
- Real-Time Data Synchronization: The platform ensures consistently up-to-date information across all connected systems. Any changes are instantly reflected everywhere, maintaining data integrity.
- Data Quality Management: Built-in processes continuously validate and enrich data to keep it reliable. Information remains accurate and complete for your workforce’s needs.
- Low-Code Modeling: Boomi DataHub simplifies the creation and management of data models, supporting governance aims. Hence, your teams can focus on strategic work instead of complex configuration.
- Integration Capabilities: This platform swiftly connects diverse applications, enabling comprehensive information governance across your operations.
- AI-Readiness: Boomi DataHub prepares high-quality, governed data for AI and analytics initiatives.
Learn more about why trusted master data is vital to your business.