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Data Governance Benefits

Data governance is a critical part of many organizations today. In this post, we will look at some of the commonly found benefits of incorporating data governance into an organization.

Improved Data Quality

In theory, when data governance is implemented within an organization there should be a corresponding improvement in data quality. What is meant by improved data quality is better accuracy, consistency, and integrity. In addition, data quality can also include the completeness of the data and ensuring that the data is timely.


When data quality is high it allows end users to have greater trust in the analysis and conclusions that can be made from the data. Improved trust can also lead to an increase in confidence we sharing and or defending the decision-making process.

Risk Reduction

Data governance can also reduce risk. There are often laws that organizations have to follow concerning data governance. Common laws often include laws about privacy. When data governance is implemented and carefully enforced it can help in complying with laws and thus lower the risk of breaking laws and or facing legal consequences.

The typical organization probably does not want to deal with legal matters. As such, it is in most if not all organizations’ benefit to comply with laws through data governance. The process of abiding by laws also provides a good example to stakeholders and creates a culture of transparency.

Improved Decision-Making

Decisions are only as good as the information that they are based upon. If data is bad then it puts at risk the making of bad decisions. There is an idiom common in the data world which states “garbage in garbage out.” Therefore, it is critical that the data accurately represents what it is supposed to represent.

As mentioned earlier, good data leads to good decisions and increase confidence. It also helps with improving understanding of the context in which the data came from. 

Improved Processes

Data governance can also improve various processes. For example, roles relating to data have to be clearly defined. In addition, various tasks that need to be completed must also be stipulated and clarified. Whenever steps like these are taken it can improve the speed at which things are done.

In addition, improving processes can also reduce errors. Since people know what their role is and what they need to do it is easier to spot and prevent mistakes as the data moves to the various parties that are using it.

Customer service

Data governance is also beneficial for customer service or dealing with stakeholders. When requests are made by customers or stakeholders, accurate data is critical for addressing their questions. In addition, there are situations in which customers or stakeholders can access the data themselves. For example, most customers can at least access their own personal information on a shopping website such as Amazon.

If data is not properly cared for users cannot access it or have their questions answered. This is frustrating no matter what field or industry one is working for. Therefore, data governance is important in enhancing the experience of customers and people who work in the institution

Profit Up

A natural outcome of the various points mentioned above is increased profit or decreased expenses depending on the revenue model. When efficiency goes up and or customer satisfaction goes up there is often an increase in revenue.

What can be inferred from this is that data governance is not just a set of ideas to avoid headaches but a tool that can be employed to enhance profitability in many situations.


Data governance is beneficial in many more ways than mentioned here. For our purposes, data governance can allow an organization to focus on making cost-efficient, sound decisions by ensuring the quality and accuracy of the data involved in the process of making conclusions.

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