The total amount of data created globally reached a new high in 2020 at 64.2 zettabytes, says Statista. This is expected to double in 2023 to 120 zettabytes and reach a staggering 181ZB by 2025. And these numbers aren’t even close to being set in stone. The World Economic Forum (WEF) 2.5 quintillion bytes of data are generated with more than 50% coming from internet of things (IOT) devices. However, the same report by the WEF also pointed out that less than 1% of this data is being used to its full potential.
This sheer scale of data and the percentages that surround it sit at the very core of this, the age of big data. An age where information has become more of a commodity than ever before and where understanding how to use, store, analyse and interpret this information is invaluable. It is also an age that needs governance…
Today, most companies have put systems in place that allow them to store their data. They have lakes and rivers and barrels of data, and they have the experts that can tap into this data. But few have seriously considered the ethics and governance of this data. As McKinsey highlights in its report: ‘Data Ethics: What it Means and What it Takes’, the research firm underscores the importance of ensuring that data is ethically managed so as to minimise the risks of reputational and financial loss.
This ethical management of data requires that companies start to rethink their data governance models so they can implement better standards, policies and approaches. In many cases – the McKinsey 2021 Global Survey on the State of AI found that only 17% of companies had a dedicated data governance committee – there isn’t enough emphasis on governance, which means it has to shift from being ‘someone else’s problem’ to including all decision-makers across all levels and silos.
Companies need to employ a data governance operating model that ensures data quality is high, shifting it from purely a commodity that can drive insights to a product that can deliver value to the business. As McKinsey emphasises, data governance has to be designed to create value because this will ensure that it shifts from a box-ticking exercise with limited scope to something that is recognised by decision-makers as something that can help drive the bottom line.
With a well-designed and effective data governance policy in place, companies can, and will, experience:
- The ability to take advantage of data-driven opportunities;
- Reduced resource waste and improved visibility;
- Cleaner and leaner data that can be used by anyone to achieve measurable goals;
- The value of the money spent on data ecosystems and storage – the data will do its job because it has met clear expectations;
- Data that can help improve processes and productivity;
- Enhanced data value across technology, people, processes and systems;
- Improved visibility and transparency alongside high-quality insights;
- Improved decision-making and communication;
- Smoother audits, admin and compliance; and
- Controlled and organised data management and growth.
The how of data governance also doesn’t have to be daunting.
Most companies don’t have great data governance because it feels daunting, overwhelming. It comes across as too complex and costly for the business to manage effectively. This can be true, but it can also be overcome with the right partnerships.
Intellinexus has developed the D.R.I.V.E. framework that’s focused on providing your business with the tools it needs to transform data governance and translate your data into valuable, intelligent and relevant insights. We will help you shift your data governance challenges into opportunities; contact us today.
Share