Information Governance – The Secret to Monetizing Data

by Dan Rotelli | October 23, 2019

With the increasing value of data and more tools to process and analyze information than ever before, companies with information governance and master data model programs are outpacing their peers.

Simply storing information without a detailed road map for how the data can and should be used is not enough.

  • How does data benefit the entire company?
  • What core business processes or outcomes hinge on accurate data?
  • What innovations will not happen without new data?
  • What data can be re-used throughout the organization?
  • How much time and energy is wasted by inefficient data practices?

I get to interact with a lot of companies who are on the leading edge of brilliant use-cases for innovating processes and workflows with data.

Want to know what makes them successful? I’ve thought about the commonalities in the way these companies work.

They are more strategic in their planning. They align overall company vision with very specific business use-cases and ensure that IT and business initiatives are in harmony.

Without exception, they commit to a formal process for data-driven decision making. And by setting up feedback loops, they see continual, and faster improvement.

They’re proactive with change management. By socializing their ideas through various internal channels, they get buy-in from everyone affected. This allows them to track progress and predict their successes.

They crave feedback from users and process outcomes. By measuring performance, they drive improvements through necessary process and workflow changes.

And they simply execute better. And sometimes with an almost fiendish desire for optimization. By paying close attention to changing business environments, they’re quick to implement changes to the infrastructure required for data-driven results.

 

It’s All About Information Governance and Management

Data is an asset. While you may not be able to show it on the books (yet), companies who figure out how to productize and commercialize their data are more profitable. In our industry, we call this Enterprise Information Management (EIM). It’s a well-coordinated initiative that spans business units and time. It’s not a one-off project, you can’t hire it, or buy it, but you can achieve it!

Successful EIM initiatives start off small. It seems that by limiting the scope, silos of information and processes are easier to deal with. You have to look at your organization as a whole and ask yourself “What are our information management capabilities? And how willing are key people to move away from current data management practices and tools?”

Your dream of effectively managing an enterprise-wide master data model can be a reality. It simply takes the right resources and a measured approach to get there.

Wondering how you compare to your peers?

Most companies today are more reactive to information governance. They operate more-or-less from a standpoint of solving information-related problems. Lack of competitiveness or business losses seem to be the main drivers to becoming more proactive with data governance and management.

What you’re shooting for is enterprise-wide information governance. You’ll know you’re getting closer as data management becomes more aligned throughout the organization’s software applications, processes, and strategic initiatives.

EIM is the path to true data efficiency and getting the most out of it requires a lot of planning. You have to ensure that you’re creating an opportunity that capitalizes the business value of data. It’s not just about sharing information or efficiency gains. Remember, the goal is productizing and commercializing your data. This is a radical new concept in the realm of managing master data.

Your EIM program will be as unique as the processes and products that are a part of your current success.

So how do you get there?

Research firm Gartner, Inc. suggests 7 building blocks for success with EIM. They are:

  • Vision
  • Strategy
  • Metrics
  • Governance
  • Organization and Roles
  • Life Cycle
  • Infrastructure

Enterprise Information Management

Vision

So what’s the big picture view? Can you see how information management will transform data into a legitimate asset that fuels enterprise-wide goals? Maybe you can relate to one of these statements:

Regardless of where you are in your journey, it’s critical to maintain a vision for where you need to go. Your company’s goals will be nearly impossible to achieve without a vision of how the integration of data, people, and processes drives success. You’ll need buy-in from all areas of the organization, especially senior leadership.

A practical way to get started is to pick a business mission that clearly benefits from information governance and build out a strategy from there.

Strategy

Your roadmap to success must include sponsorship from organizational leaders. And you’ve got to build a plan that works. This is the execution I mentioned that sets companies apart. See if one of the scenarios below matches where you’re at:

To execute on strategy, you’ll need strong data and analytics leadership who understands that advances in technology will spur significant future economic growth. Responsibility for managing your company’s data must be clearly defined and supported.

Articulating strategy in terms of business outcome is key. For example, business growth, profits, cost and performance optimization, efficiency, compliance, and risk management.

Metrics

As Peter Drucker so famously said, “If you can’t measure it, you can’t improve it.” And, as W. Edwards Deming said, “In God we trust, all others must bring data.” These two quotes sum it up. You must be able to measure your performance. What metrics and goals do you have for information management? See if you can relate:

The right metrics for EIM must tie back to budgeting, return on investment, and supporting your company’s top-line goals. How will you show that information management improvements directly affect overall organizational performance?

Governance

Information governance is more than just ‘store everything!’ A healthy system includes a documented plan for how decisions are made regarding your organization’s data. How is it acquired or created, stored, archived, or deleted, and how will it be used? And for a plan to be successful, how it ties back to enterprise goals and processes is important. Want to test your governance level? See where you fit in below:

Information governance is more than a policy or decision-making framework. It’s ability to move an organization to the point where data priorities are based on business need versus IT or regulatory requirements is startlingly powerful. You must also consider how to actively enforce it.

Organization and Roles

The reason focusing on organization and roles is so important is that it helps establish data stewardship as a business-led initiative. In some organizations, the IT department has the primary accountability for information governance. A successful EIM program requires a healthy cross-section of skills and perspectives from the entire enterprise.

Success happens when governance moves beyond the realm of database administrators to a more centralized and controlling role such as a Chief Data Officer. This person will lead the efforts and specify additional roles like information architects and data curators. And as the business value of data fully emerges, the creation of an information product manager will ensure even greater focus on productizing and commercializing your data.

Life Cycle

If information is an asset, it must have a life cycle. When data is simply stored in silos and integrated as needed, its value is uncertain. This approach adds regulatory risk from accidental or improper handling of data. But more than anything, it prevents your organization from realizing its full potential.

Information life cycles should be business-centric processes, not detached IT workflows or tasks. By optimizing the value of information across the enterprise, you ensure that data is fully managed according to its business value. This also reduces risk by creating a defensible program for the retention or disposal of information.

Your processes should include the actions necessary to assure ongoing data maintenance and quality management.

Infrastructure

As a highly valued asset being stored and transferred to and from the enterprise, your information requires a highly optimized infrastructure. Disparate, application-specific technologies limit the performance and interoperability of data.

The optimal infrastructure is elastic – a dependency on dynamic cloud services. It is an environment where big data, analytics, content, and business intelligence all execute on purpose-built platforms. The strategic difference is focusing on information management capability versus individual technology solutions or tools.



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