This guest post was provided
by Eleanor Wyatt of Remote Work Wellness
Why Your Small Business Needs Data Governance
Data abounds in the digital era, and it’s only going to expand its reach. For small businesses, data is an essential asset that can drive growth and improve decision-making. But as much as it can be a valuable tool, data can also be risky without proper management. Today, learn the fundamentals of data governance and why it’s vital for small businesses.
What is Data Governance?
Data governance refers to the overall management of the availability, usability, integrity, and security of data used in an organization. Delphix points out that it involves the development and implementation of policies, procedures, and standards for data management, as well as the monitoring of these policies to ensure they’re being followed. Simply put, data governance is the framework that facilitates the effective use of data assets while ensuring compliance with regulations and policies.
How Can Data Governance Benefit Your Small Business?
Establishing a robust data governance program offers several benefits to small businesses. Domo notes that it helps reduce the risk of data breaches, minimizes data loss, and maintains data quality — ensuring your business decisions are based on accurate information. Data governance can also assist in optimizing IT investments, improving operational efficiencies, and enhancing customer satisfaction.
Getting a CDP
Finding the right customer data platform (CDP) can help your small business gain deeper insights into your customers. It can ultimately improve your customers’ experiences and boost sales. A good CDP will be able to collect, unify, and analyze customer data from various sources (e.g., social media, website analytics, CRM systems, etc.) to provide a comprehensive view of the customer journey. Taking time to research different platforms online can have a significant impact on your organization’s success in today’s highly competitive market.
Complying With Regulations
Small businesses must comply with various regulations regarding data management, such as:
- The General Data Protection Regulation (GDPR)
- The California Consumer Privacy Act (CCPA)
- The Health Insurance Portability and Accountability Act (HIPAA)
Failing to adhere to these regulations can result in hefty fines and negatively impact your reputation. A well-designed data governance program will assist your small business in complying with these regulations. You can ensure that you collect, store, and manage data in accordance with the established policies and procedures, safeguarding your business from a host of problems.
Using and Protecting Your Data Properly
Data governance can help your small business use and protect your data correctly. Proper data management practices will guide your team toward lawfully and ethically collecting data. It also helps ensure that you store your data securely to protect it from unauthorized access or breaches. And data governance even provides guidelines for data usage so your team knows that data is only shared with authorized individuals for legitimate business purposes.
Setting Realistic Goals
For small businesses, establishing realistic goals is essential to achieving success in any area. A data governance program can help you set and achieve data-related goals. Establishing measurable objectives for data quality, accuracy, and security — and using key performance indicators (KPIs) — can help you track progress and improve over time. Further, a data governance program can assist your team in identifying potential risks and opportunities, allowing you to adjust your goals and strategies accordingly.
Training Your Team in Data Governance
Data governance is an ongoing program that constantly requires you to monitor and improve. Training your team in data governance is crucial to ensure that everyone understands the policies, procedures, and standards for managing data throughout your organization. By creating a data-driven culture that values proper management, you can significantly reduce risks, improve data quality, and leverage information more effectively.
Data governance is non-negotiable if you intend to succeed in the digital age. Implementing a robust data governance program will position your small business for enhanced data quality, compliance, risk management, operational efficiencies, and decision-making. When setting up your program, remember to comply with relevant regulations, establish realistic goals, use a top-notch CDP, and train your team well. Your small business will immediately gain a competitive advantage and begin driving growth!
Parone Group works with executives to increase organizational effectiveness. Call 954.464.6689.