Why is Data Governance Important?

Last modified: July 18, 2019

What is Data Governance?

Data Governance is a set of processes that ensures important and critical data is systematically managed and protected throughout the organization. It assures that trusted information is used for accounting, decision making, and other critical business processes.

Data Governance is a framework that comprises of five pillars:

  • Availability
  • Usability
  • Integrity
  • Security
  • Implementation

These processes involve an efficient coordination of people and technology in a manner that results in realizing the value of data for an enterprise. It bridges the gap between technology and business — advancing accurate, honest, and secure decision-making.

Although technology is core to data governance, it is only a facilitator, and not crucial for data governance. It has to be applied as a regulated workflow within the firm through people and processes. Without that regulation, data would never be considered a valuable asset.

5 Reasons Why Data Governance is Important

1. Data Governance Saves Time and Money

Data Governance increases efficiency by putting the effort of managing the data upfront. Clear governance models reduce data duplication, ultimately reducing duplicate data management efforts. This way, companies can reduce the probability of errors ending up with better quality of data.

Data Governance lowers errors in a database by providing integrity of data. This in turn gives the organization a strong database to work from and saves valuable time that would otherwise be used in resolving existing data issues.

Data Governance not only saves money, but also helps generate revenue too. For example, having solid grip on how core metrics, marketing exclusions, segments, and acquired attributes like customer lifetime value are defined, can help a firm in making marketing campaigns more effective. Enhanced campaigns generate more revenue while saving money.

2. Data Governance Ensures Consistency and Reliability

Data Governance is needed to ensure that a company’s information resources are properly, formally, efficiently and proactively managed throughout the company to secure its trust and accountability.

Data Governance constitutes collecting of data, revising and standardizing it, and making it good for use. It makes data consistent. Data Governance ensures that critical data is available at the right time to the right person, in a standardized and reliable form. This delivers better organization of business operations. Adopting and implementing Data Governance can result in improved productivity and efficiency of an organization.

3. Data Governance Guides All Analytics Activities

Analytics help illustrate if progress charts are headed in the right direction. Businesses that do not have data governance as part of their organization structure often face troubles in handling data. Poor data analysis leads to poor management-level decisions. Data generated by a company grows exponentially and thus it is vital to analyze and structure data for better re-usability.

4. Data Governance Improves Confidence and Provides Clarity

Data governance provides a firm with satisfaction that data is clean, accurate and standardized. Effective data governance wipes out those pains of analysts by clarifying:

  • What metrics mean
  • Which metrics are accurate
  • How are the KPIs (Key Performance Indicators)
  • What metrics are most important
  • What is the the risk of using the data
  • Why there may be gaps

Stronger clarity means more confidence in data driven decisions. As a result of having great confidence, the speed of making data related decisions and choices increases. Data Governance builds the confidence needed to get closer to the target.

5. Data Governance Provides Data Security

Data is the most essential asset of a business. Mistreatment of data or other such purposeful activities can lead to serious legal issues. Data Governance tools provide data security from external as well as internal members with permission sharing and file hierarchy. Regardless of the size of an organization, it is necessary to have a data governance system in place. It is a comprehensive process for regulating availability, usability, integrity and security of data owned or controlled by an enterprise.


From the preceding, it is clear that data plays a crucial role in the successful operation of any business entity. It is thus only apt that an appropriate system is put in place to assure that the data collection, utilization and disposal is done within the law, and in a way that progresses with the goals and objectives of an enterprise. In a nutshell, Data Governance aims to standardize the efforts of people and processes to enhance data integrity and quality in order to have sustainable growth.

Written by: Rohan Joseph
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