Data governance costs can account for a large segment of a company’s operational costs, particularly for businesses that deal heavily in data collection. But with today’s technological advances, there are a number of data governance strategies that can reduce costs dramatically.
It can be easy to confuse the term data governance with data management. Data management entails the implementation of tools, processes and architectures that allow a business to leverage its data in a way that’s consistent with the company’s objectives. Data governance involves overseeing the manner in which data is accessed and handled within a larger data management strategy. Understanding data management vs. data governance is critical as you begin to explore strategies for reducing the costs of data governance.
How to Identify Poor Data Governance Practices
To reduce the cost of poor data governance, it’s essential that a business takes some time to understand who is using the company’s data, how they’re accessing it and how/why they’re using that information. This can be achieved by spending a bit of time with the employees who use the company’s data, so you can gain insight into their needs and practices.
Once you understand who is accessing the company’s data, you can investigate the various practices used to access, utilize and analyze that information. This will place you in a good position to implement more efficient practices and protocols designed to bring about data governance cost savings.
Reduce Data Governance Costs With Database User Roles
In the world of data governance, best practices dictate that a user should have access to the minimum amount of data that’s required to perform their duties. Minimizing users’ unnecessary exposure to data decreases the security risk — which is significant for many companies — while simultaneously making it easier for users to find the information they need.
Instead of being faced with tens of thousands of data points, a user may only be faced with a few hundred data points, which makes it far easier to find a specific piece of information. This saves time and reduces the risk associated with unnecessary data exposure. Additionally, you’ll minimize the amount of data that could be moved or altered in a way that makes it challenging to find and use in the future. To achieve this, you’ll need to understand what data is required to meet each user’s objectives; then, create corresponding user roles.
Increase Data Governance Cost Savings With a More Robust Toolset
Finding the exact information you need amidst millions of data bits can be a challenge that sucks up valuable time — time that could be better used focusing on other tasks. To achieve this, you need a robust toolset that allows users to locate, filter, sort and export data with great efficiency.
Take some time to understand what tools are currently available to users. Then, interview employees to determine what new tools or capabilities could be added to improve their processes. Lots of time (and thus, money) is wasted as a user sifts through masses of data, attempting to find, filter and sort information so it meets their needs. An experienced data governance and software development team can modify your interface so it features all of the capabilities a user needs to succeed.
Recording a user’s actions and all data modifications is critical. This is also an area where companies frequently find that they need additional tools and capabilities.
Cut Costs of Data Governance With Solid System Integrations
Many companies have multiple isolated software platforms that lack any sort of connectivity. This leaves humans to span the gap by exporting data from a software interface, and then importing that data into the company’s data warehouse and data lake(s). In today’s modern age, this is tremendously impractical and inefficient, but many companies still operate in this manner.
The solution: hire an experienced system integration service provider to bridge the gap between stand-alone software platforms and databases. Companies can benefit tremendously from maintaining an all-inclusive pool of data that is updated in real-time. Those who use that information can proceed knowing they have the most current information; this translates into greater accuracy and precision.
Poor Data Governance Costs and Regulatory Compliance
The EU’s General Data Protection Regulation (GDPR) has proven to be a game-changer for all companies that work with customers or clients in an EU nation. The fines for a lack of GDPR compliance can be tremendous, totaling 4% of a company’s global revenue for the prior year or up to 20 million euros (whichever is greater).
GDPR requires companies to remove a customer’s data upon request, in addition to providing a record as evidence that the individual’s data was removed and “forgotten.” So if your databases cannot track deletions and export a record of those deletions, your business could be in line for a massive fine.
This is just one example of how poor data governance can result in unnecessary financial losses for your business. GDPR is one of many regulations related to data governance. The healthcare industry is another area where poor data management and governance can lead to hefty fines. It’s vital that your company takes the time to understand what regulations apply and whether your existing data systems are architected in a manner that allows for full compliance.
In addition to reducing the cost of data governance, it’s also possible to modify your data infrastructure in a way that allows you to use it to maximum benefit. For instance, adding a platform with a predictive analytics engine and data visualization tools can empower a company to increase profits and reduce overhead.
At SevenTablets, we have extensive experience in the realm of data governance. This ranges from creating data lakes and a data governance plan, to establishing predictive analytics engines and data visualization tools that allow users to understand data like never before. We also have a team of talented custom software developers, so we’re well-positioned to assist with any custom development projects.
SevenTablets has clients in Dallas, Houston, Chicago, Austin and beyond. We provide a complete suite of high-tech service offerings, including ERP and CRM development, cloud integrations and system integrations. So if you’re in search of an innovative team to guide your business as you work to make the most of your data, contact the team at SevenTablets today.