A guide to data governance: What it is, and why your organization needs it

Data governance is increasingly crucial for organizations striving to deliver well-understood, accurate, and complete data, as it helps improve data quality and accessibility, fostering informed decision-making across departments. A study by McKinsey & Company highlights that companies typically allocate between 2.5% and 7.5% of their IT budget to data governance, underscoring its significance in the business landscape. With definitions varying widely, Gartner describes data governance as a framework ensuring appropriate behavior in data valuation and control. Companies like Strava and Omio have leveraged solutions like Snowplow to enhance their data quality and democratize data access. Effective data governance is built on trust and accountability, aligning with business outcomes and adhering to compliance regulations like GDPR and CCPA. Best practices include transparent operations, employee training, and fostering a collaborative environment, which collectively elevate data governance from a siloed task to a core organizational strategy. The ultimate goal is for data to be trusted and actionable, allowing businesses to use it as a competitive advantage by transforming raw data into valuable insights that drive growth and innovation.