According to Gartner, information contributes at least 20-25% of an average organization’s value today. Studies have uncovered countless ways to use data as an asset to help improve businesses by reducing costs, improving customer satisfaction, and managing risks. Along with the paradigm shift towards valuing information as an asset, companies also need to find opportunities to maximize its worth by focusing more upon data governance. The rapid escalation in the amount of information organizations need to handle makes governance even more critical.
How Data Volume and Value Make Data Governance Essential
Data governance covers everything related to managing the security, accessibility, quality, and usability of information within an organization. For example, it includes steps taken to ensure businesses have reliable, protected, and accurate information to make better decisions and help serve customers. A governance plan generally includes policies and the tools to implement and enforce those rules.
As quoted on TechTarget, Gartner analyst Andrew White said that most of all, good governance doesn’t stand alone. Instead, businesses should consider it a core piece of their strategy to achieve overall business goals.
HubSpot created a simple but compelling infographic to illustrate how the rising tide of the volume, value, and even variety of data underscore the importance of data governance. Some figures they published include:
- Out of all data created in the world, 90 percent has been generated within the past two years, an escalating trend that will almost certainly continue.
- Typical organizations spend 3.5 to 7.0 percent of their overall revenue on information technology. For example, a company with $100 million in revenue might expend up to $7 million just on managing information.
- Out of organizations polled, three-quarters viewed information governance as a critical factor to their success.
- At the same time as most of the information workers viewed information management as vital, less than half thought that top executives understood the importance of governance the as very important.
The Association for Intelligent Information Management (AIIM) contributed the statistics used in the infographic. They also noted a trend that the most high-performing businesses strove to integrate governance into their overall strategy, so that supports Andrew White’s point above.
More specifically, 42 percent of these high performers already had robust plans in place and another 24 percent had made plans to follow. Of the rest, 13 percent had begun their efforts with only some departments, 16 percent had policies that were still in incubation, and only five percent had no formal governance policies at all.
The Future of Improved Data Governance
Traditionally, businesses set information governance policies crafted to reduce risks. For example, these companies wanted to ensure they protected and managed their data to avoid compliance problems and to preserve high-quality information for reporting. According to AIIM, today’s high-performing companies would also add the additional benefits of improving customer service, responding faster to changes, and to make better decisions through analytics and high-quality data.
To improve information governance, AIIM suggested including three vital steps:
- Establish an IG team: Start with top leadership and include critical stakeholders and of course, the IT department. Make certain employees understand how managing, controlling, and protecting information will improve business and in turn, their own situations. Keep the door open for feedback on initial plans to all levels.
- Audit existing information: Organizations need to understand, classify, and audit their information to have any chance of assigning both value and risk. This process can offer you all sorts of value because you will know which sorts of data you should spend the most on protecting, storing, and accessing and which data you might invest less in archiving. Sometimes, you may uncover valuable data that you could use if you only knew it existed.
- Weed out what you don’t need: Information ROT refers to the kind of redundant, obsolete, and trivial data that can bog down your storage, systems, and processes. According to Veritas, a storage tech company, about one-third of all data stored will never be useful or used. Another 50 percent is considered “dark data” with no known value. Together, these provide no value and run up cumulative excess costs of trillions of dollars worldwide. Alternatively, you may find some of this dark data valuable and realize you need to invest more in protecting and using it.
Choose the Right Technology to Support Information Governance
At M-Files, we built our business around the importance of helping our customers control and manage information through its lifecycle. With automatic and even AI-enabled features, this system lets you manage records from conception to eventual deletion or archival. You can even set security and processing features that ensure compliance with your company’s governance policies and most efficient business procedures. At the same time, editing rules will maintain data quality and reduce human error. Even better, you can turn to one interface to find anything, no matter where it’s stored or even from which remote location you need to access it from.
You and your team can focus on the challenging task of creating good information governance policies and processes. After that, you can set rules within M-Files to ensure they’re enforced. Give us a chance to show you exactly how M-Files will improve your governance and overall business by contacting us today with your questions or requests for a demo or free trial.