Defining the Goals of Data Governance

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Companies are increasingly finding that it pays to put a formal governance structure around their information assets.  For too long, companies have failed to put a formal structure around the design, generation and management of their information assets.  In an increasingly global economy, companies are realizing that they must pay attention to information delivery as a compeitive asset.

Data Governance, sometimes  called Data Stewardship, is the process of managing a company's information assets to create and sustain a competitive edge.  In creating a Data Governance program, the first step is to identify the goals of the Governance program.  The impetus for creating a formal program can include:

  1. Realigning data governance with the implementation of a new technology.  Many times a new Data Governance structure is required when a company implements a new technology such as an ERP or Business Intelligence system.  These systems will require specific data definitions that must be proactively managed.
  2. Realigning data governance with organizational changes.  Management reporting is a dynamic concept that must keep up with the operational needs of the business.  As companies reorganize, it is imperative to identy and manage changes in required management information.
  3. Enhancing the quality of existing intelligence without organizational change.  Even in stable companies, it is rare that operational managers have the intelligence they would like to have to manage their business.  World-class finance organizations focus on continuous improvement, and that includes the intelligence they deliver to their colleagues in operations.
  4. Supporting compliance initiatives.  Companies must use their information assets to manage compliance efforts, whether driven by external or internal forces.  Data must be managed to efficiently meet these requirements.

These are some of the basic reasons for engaging in a Data Governance program.  In my next Data Governance post, I'll discuss the basic structure of a typical governance program.