As the data-centric approach is getting recognized for its potential, companies are moving toward strong data governance programs.
FREMONT, CA: Organizations are increasingly moving toward data-centric setups. A robust, ongoing data governance program is essential for asset managers to leverage the benefits of massive data sets. The companies have realized the potential of structured data, which is evident from their move to create separate data centers which have been for years within the IT department.
There are significant operational and strategic hurdles while establishing a data governance program. However, looking at the bigger picture, the effort is worth the dividends. Here are the primary benefits of investing in data governance programs:
Provides Standards for Data Transparency and Protection
The terms and definitions used in a business can be completely different from the terms and conditions used in another.
Moreover, it is difficult for the concerned parties to agree on a set of business terms and usage rules. Thus data governance can assist in centralizing the process and in the distribution of results. Centralizing also help in risk mitigation while dealing with large scale data transformation initiatives as it can enable better control and overview of complex data projects.
Establishes Trusted, Certified Data
With the help of a data governance program, a company aims to establish and maintain quality data across the verticals through a data quality framework. The effort to be transparent and responsive allows the governance programs to change negative perceptions, and to establish a sense of confidence and trust among users who accesses the data as it goes through the validation process.
Offers a Chance to Channelize and Consolidate Data
Data acquisition, especially from third-party sources is a significant expense for asset management firms. Moreover, there is always a risk that the data has not been adequately acquired and validated, which might face an additional licensing fee. With the centralization of this function, a firm can effectively streamline its data procurement, mitigate risks associated with storing sensitive data, negotiate favorable rates, and decrease operational costs by reducing redundancy.
Establishes Business Information and Data Ownership Model
Asset managers use several names and models while defining the information model or business data catalog with the associated ownership roles under their data management and governance structure. Organizations can achieve primary administrative goals by standardizing the business terminology and information model. It is also possible to establish a matrix by mapping the business organizational data management model with the organization’s data universe, which is a data business ownership model present as a pseudo-RACI (Responsible, Accountable, Consulted, Informed). Data stewards and owners must be held accountable for the overall content, with quality and delivery within their respective business units. In this way, the business quickly states data usage rules, which could minimize risk and reduce IT exposure while making data available for operational purposes.
Addresses Short and Long-Term Data Agility
A properly-designed Effective enterprise data management (EDM) platform and strategy help firms to become more proactive and responsive to industry and business needs. Firms need to build capacity to adjust to short-term market drivers while also planning against a well-designed, long-term roadmap. Effective governance, combined with the implementation of an EDM platform enables a firm to position itself for faster development and delivery of new data sources.