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Defining The New Data Driven Economy

Defining The New Data Driven Economy

As the work we do becomes more and more digitized from books to Zoom meetings to online shopping to crypto assets/property to social media, the data that’s being collected is becoming more precious to those companies who wish to create individual profiles of potential client bases. This can be tricky situation since, legally speaking, the right to privacy for every individual must be upheld (tell that to Facebook’s CEO).

Says Claravine, a data governance framework, with enterprise and organizational data growing rapidly if not exponentially, and General Data Protection Regulation (GDPR) enforcement fines increasing by more than 40 percent last year alone, an investment in data governance is said to be an urgent strategic initiative for businesses that are data-driven.

In terms of real costs, the data governance market is projected to be worth upwards of $5.3 billion by 2026. That’s more than double what it’s worth in 2021.

The Definition of Data Governance

According to a new business report, Data governance is, at base, an ethical and legal approach to managing data from the point of its acquisition to its use case and finally, to its disposal or storage.

Every organization and business that relies on data requires some form of data governance. That’s because all industries that thrive on “digital transformation journeys” have realized that data can be the most valuable business asset they can possess (simply formulated, data=revenue).   

Business owners and managers require timely, accurate data to make the most strategic decisions they can. That said, sales and marketing pros require data they can trust to get an accurate idea of what a customer wants and needs.

Supply chain managers require good data to keep inventories stocked while minimizing manufacturing and shipping costs. Meanwhile, GDPR compliance officers must prove that data is being utilized according to the letter of the law.    

In short, data governance combines all the things that are necessary to make sure the data your organization harvests is private, available, secure, accurate, and usable. It also includes the actions professionals must engage in, processes that are required to be followed, along with the 21st century technology that provides data support.

Data governance requires establishing internal data policies and standards which apply directly to how the data will be harvested, stored, and eventually, disposed of. It “governs” exactly who or what software can access what types of data under every condition imaginable. It also means complying with industry standards, the law, and mandates established by government regulatory agencies.

The Benefits of Data Governance

Making good and timely decisions

Organizational professionals retrieve the data they require that enables them to service and reach customers, create opportunities for new revenue sources, and improve existing products and services.

Cost Control Improvement

Good data can assist you with managing resources much more effectively. If you are able to eliminate “data duplication” which occurs via “information silos,” you won’t find yourself overbuying and maintaining pricey hardware and software.

Regulatory Compliance Enhancement

The regulatory climate is said to be getting more complex in proportion to big government. This has made it even more crucial for businesses and organizations to build and maintain strong data governance best practices. This way, you avoid the risks that can come with noncompliance while, at the same time, keeping an eye out for new regulations being proposed by government watchdogs. You also avoid costly fines, distrustful customers, and embarrassment among your business peers.

Customer and Supplier Trust

By being in full compliance with data regulations, both externally and internally, you will gain the full trust of both existing and potential customers. They come to count on you protecting their most valuable and sensitive information and therefore, they will feel comfortable doing business with you and your team.

Risk Management

Data governance means you can breathe easy over concerns of potential exposure of sensitive data to other businesses, organizations, and/or individuals who lack authorization. You will avoid security breaches from outside sources, from malicious organizations to entire hostile countries, while also protecting data from internal employees who have no business accessing the data.

Personal Contact with More Data

By engaging with a robust data governance platform, you can actually increase your ability to personally make contact with and access more data. This means your employees and teams are able to get access to the right data and that the “democratization of data” won’t have a negative impact on your business or organization.

Also Read: The 5 Trends In Data Integration That Organizations Will Follow In 2022

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