In a world where data has become a key business resource, the question is no longer “should we manage data?” but “how can we do it effectively?”

More and more organizations are investing in analytical solutions, BI systems and artificial intelligence, but without a solid foundation in the form of data governance, their potential remains untapped.

What is data governance and why is it important?

Data governance is a set of rules, processes and roles that ensure that data in an organization is consistent, accurate, secure, and used appropriately. It is not only a technology, but also an organizational culture – a clear definition of who is responsible for data quality, who approves it and who can use it.

It is worth distinguishing between data governance and data management. Data management refers to operational activities such as data integration or storage, while governance refers to the strategy and rules that guide all processes.

The most common problems faced by companies without adequate data governance

Organizations that do not have clearly defined data management policies very often face the same difficulties. Data is stored in silos in different departments, making it difficult to find a single source of truth. There is a lack of consistent standards and definitions – what constitutes a successful campaign in marketing may be understood completely differently in finance. This leads to chaos in reports and significantly prolongs the decision-making process. At the same time, poor data quality; errors, outdated information, or duplicates – means that even well-designed analytical tools do not deliver real value. Added to this is the issue of legal risk: lack of control over data can lead to serious problems with regulations such as GDPR or compliance requirements, resulting in costly penalties and damage to reputation.

Key benefits of implementing data governance

Implementing a consistent data management policy enables an organization to make decisions based on facts rather than intuition or unreliable sources. Data is organized and consistent, which builds trust both within the company and in relationships with business partners. It also improves regulatory compliance, minimizing financial and reputational risk. In practice, this also means more efficient processes; reports and analyses are produced faster, and the results are more reliable. The growing role of artificial intelligence and machine learning should not be forgotten: their effectiveness depends largely on the quality of data, and data governance provides them with a solid foundation for operation.

How to start implementing data governance in your organization?

Create a data strategy and policy – define clear rules regarding quality, access, and security,

Assign roles and responsibilities – e.g., Data Owner, Data Steward (quality supervisor),

Invest in the right tools – solutions that support data cataloging, access control, and process automation (e.g., in the SAP ecosystem),

Build awareness within the organization – training and communication that emphasize that data is a shared responsibility.

Practical example

Imagine a company that implements a BI system for sales reporting. Without governance, each department can define “sales” differently – marketing counts leads, sales counts signed contracts, and finance counts only invoices that have been posted. As a result, reports are contradictory and decisions are delayed or incorrect.

By implementing data governance, the organization establishes a common definition, quality standards, and a data approval process. The result? A single source of truth and reports you can rely on.

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Data governance is not a fad, but a prerequisite for effective digital transformation. Without it, companies risk chaos, poor data quality, and costly mistakes. Implementing a consistent data management strategy not only protects against risks, but also unlocks the full potential of BI, AI, and modern ERP systems.

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👉 At Expert Links, we support organizations in building data governance strategies and implementing solutions that enable effective data management. If your company is facing the challenge of organizing its data, please contact us.