How to Measure the Business Value of Data Governance
Data Governance is vital for many enterprise information capabilities such as master data management, reference data management, data quality, data insights, and more. It requires collaborating within a complex and robust combination of factors such as data stewardship, policy definition & management, and decision rights. With a plethora of factors that are involved in running a data governance program, it is necessary to be able to measure the business value of data governance.
The previous blog on Why do you need to Opt Data Governance for your Enterprise? helps to understand the overall benefits of opting for data governance and transforming your data into insights. The important step after enforcing the data governance policies is to measure the business value of the data governance, by creating metrics in accordance with the business relevance. The metrics must be capable of being measured empirically and must be meaningful to reflect the impact of data governance on the business. The metrics should serve the process of providing insights and how the organization uses the data to support its processes of the business and accomplish its objectives and make business decisions. For instance, data governance policies regarding data quality must lucidly define the business. When you are initiating data governance in your enterprise it is vital to identify types of metrics that are relevant to your business.
Data Governance is an area that is challenging to measure as it is not only the tool but also the design of the overall process. It is vital to consider multiple types of metrics that can portray the complexity of the data governance programs that deliver value to your company. It is a challenge to understand your goals, issues, and also the impacts of resolving the issues.
Importance of Metric in measuring the value of data governance:
- Measure the impact of data governance efforts in business terms
- Reduction in the risk scenarios
- Reduction regarding the data rectification costs
- Improvement in the data quality count
Metrics to be measured:
- Data Accuracy
- Effort to Comply
- Cost Reduction
- Audit Frequency
- Submission Time
Metrics can be used to measure the performance in the the following key areas:
- Reviewing and prioritizing issues in Data Governance meetings
- Training as per new system/process
- Data governance adoption rate – via survey
- Number of domains vs number of data owners
- Identifying the number of data issues
- Setting up a system that includes delegating or escalating processes for managing disputes regarding the data issues
- Number of issues and the frequency that is being escalated to the Data Governance Committee
- Apportionment of time right from issue identification to resolution
- The number of implemented policies, standards, and processes approved
- Number of data fields that are traceable from source to the usage
- Number of the spreadsheets that are used
- Number of the data sources that are consolidated
- Number of duplicate products and unique identifiers
- Reporting accuracy and efficiency
To know more information and for any queries regarding Data Governance please feel free to contact us at +1 888 840 0098 and you can email us at sales@amurta.com we will be happy to assist you. You can request a demo to explore Amurta’s Data Insights Platform by just clicking this link
