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How Important Are Data Governance Solutions in 2023?

With digital transformation rising, data has become the core asset determining business success. But you can only exploit your data assets if you’re able to govern them, and that’s where data governance solutions come in.

Data governance solutions are frameworks that help stakeholders and employees identify and meet their information needs. They enable safe and consistent reporting, provide insights into customer preferences and behavior, and lead to cost reductions.

But are they really important anymore with AI disrupting businesses? And how relevant are they in 2023?

Let’s find out.

What Are Data Governance Solutions?

Data governance solutions are policies, processes, and technologies organizations use to manage and protect their data assets. They ensure you clearly understand your organization’s data and manage it effectively.

These solutions involve everything from defining data standards and establishing data ownership to ensuring compliance with regulations.

To achieve these goals, businesses can leverage various data governance solutions, such as data security solutions that protect against cyber threats and tag management solutions that categorize important website analytics data and ensure it’s used consistently.

Importance of Data Governance Solutions in 2023

Let’s look at ways data governance solutions can lead to business success in 2023:

·         They Help with Cloud Data Governance

With more than 70% of businesses have migrated to the cloud, managing and protecting data assets has become crucial, especially because becoming a cloud-native company comes with risks like migration delays and overspending.

The shift is also challenging among highly regulated industries, where legacy and on-site systems make transforming raw data and delivering it to users at the right time challenging.

Data governance systems supported by AI and ML ensure efficient cloud migration by optimizing processes like workflows and data classification and ensuring data quality and compliance with regulatory requirements.

·         They Enable Risk Management

Data governance solutions can help businesses manage security, data privacy, and accuracy risks by reducing the chances of cyber-attacks, data breaches, and other security incidents.

They do this by providing insights into data usage and access, identifying potential risks, and taking action to mitigate them before they become a problem.

Plus, data governance solutions can be used to establish data access controls that limit access to sensitive data only to authorized personnel. This can prevent data breaches and make sure data is used only for its intended purpose.

·         They Increase Data Quality

Data governance solutions can be used to define data quality rules that check for missing or inconsistent data, ensuring that data is properly formatted and categorized.

These rules can be automatically applied to data as it’s collected or processed, helping to identify and address data quality issues before they become problems.

Data governance solutions can also help ensure data quality by providing data cleansing and standardization tools. This can include automated processes for removing duplicate data, correcting formatting errors, and making sure that data is properly categorized and labeled.

·         They Facilitate Data Democratization 

According to Forrester, businesses need to leverage data to increase their business advantage through direct commercialization, internal collaboration, or data sharing enabled by data governance systems.

And that’s truer than ever in 2023 because of increased competition.

So, companies should focus on getting data into as many hands as possible instead of expecting employees to seek relevant data, often through manual and lengthy processes and bottlenecks.

It’ll allow employees to leverage data when making decisions and collaborating across departments or teams.

·         They Improve Data Access Governance

In 2020, 10% of the worldwide population had data protected by modern privacy regulations. That number is supposed to increase to 65% in 2023, increasing the importance of managing and controlling access to data assets.

Data governance solutions can be used to define roles and permissions for accessing data and manage user data access based on those roles and permissions, ensuring sensitive data is accessed only by authorized personnel.

The Takeaway

As businesses increasingly rely on data to drive their operations and make informed decisions, effective data governance solutions will be more important than ever in 2023. They can help protect data assets, improve data quality, and ensure compliance with regulatory requirements.

So, organizations should prioritize their data governance strategies and invest in the right solutions to ensure their long-term success.