Data Governance: The Vanguard of the Digital Age

In the world of business and technology, the language spoken with reverence is none other than that of data. This immaterial entity, underpins our global society, and functions as the lifeblood of modern organisations. Amidst the euphoria of digital transformation, however, lurks an often-ignored imperative — data governance. Its influence has been gradually growing, and its importance cannot be overstated in the face of our relentless march towards a data-driven future.

The Humble Beginnings

The seedling of data governance took root during the dawn of the information age when databases were first put into operation, helping businesses manage their operations. In these early stages, the need for data governance wasn't apparent. Data was often stored and processed on siloed systems, typically under the jurisdiction of individual business units or departments. Each unit had its own data handlers and managers, who were responsible for the quality and security of their data.

From Chaos to Order

This seemingly autonomous process, however, was a ticking time bomb. Duplication of effort, discrepancies in data interpretation and the lack of data standardisation led to inefficiencies, conflicts which led to disinformed decision-making. It was becoming increasingly clear that the way businesses dealt with data needed an overhaul. Enter: Data Governance

The Age of Data Governance

The sheer volume of data production today is astronomical. Consider this: The Big Data industry rocketed from $169 billion in 2018 to a staggering $274 billion in 2022, representing a 62% increase, according to our 2022 State of Data report. With such a vast sea of data at our disposal, it's no surprise that the necessity for data governance has surged dramatically.

It was evident that there was a shift in the skills gaps within data teams from the previous year from our State of Data report. A more evenly spread demand across Data Governance, Master Data Management, Software Engineering and Data Quality was noted, as opposed to the previous year where Data Governance dominated. This shift indicates the diversification of the data skills market in line with the rapid growth of the industry.

However, when we drilled into responses from the Chief Data Officers' (CDO) perspective, the main skills gap remains in the realm of Data Governance. This is hardly surprising, given the ceaseless flow of data through businesses. Another Gartner study included in our report revealed that a staggering 90% of respondents' data governance projects failed, indicating that even with data governance teams in place, the scale of data flowing through a business is causing widespread challenges.

The People Process in Data Governance

In our increasingly data-driven society, it's easy to fall into the trap of attributing all the power to the tools we use to manage and manipulate data. However, according to the 2022 State of Data report, a notable shift was observed, revealing a stronger focus on the people processes within data governance. This underscores the essential role of individuals and teams who handle the data and carry out the governance procedures, even in an era dominated by sophisticated software and algorithms.

Unpacking the Importance

There's a reason why people processes have taken centre stage in data governance. Despite technological advancements, data governance remains a fundamentally human endeavour. The choices made by data professionals - from data architects and stewards to Chief Data Officers - shape the direction and success of data governance initiatives. It's these individuals who set the standards, manage the data life cycle and instil a data-driven culture within an organisation.

With the explosion of data and the surge in the complexity of managing it, the need for skilled data professionals has never been more critical. As highlighted in our State of Data report, a primary challenge from a CDO's perspective remains the skills gap in data governance. Even with the best data governance tools at their disposal, without the right skills to implement and manage these tools, organisations are likely to struggle in their data governance endeavours.

Harking back to the Gartner report which showed an astounding 90% of data governance projects failed, it shows that even when data governance teams are armed with the right skills and are adept at their roles, it is still a challenge to lead successful data governance projects.

Nurturing a Data Governance Culture

The importance of the people processes extends beyond mere skills, it's also about nurturing a culture of data governance within the organisation. An effective data governance framework relies heavily on cooperation across different roles and levels of the organisation. It's the people who follow the procedures, adhere to the protocols to uphold the principles of data governance.

Promoting a culture of data governance means encouraging transparency, promoting data literacy and fostering a shared understanding of data's value and purpose. It's about aligning everyone - from executives to entry-level employees - towards a common goal: to leverage data responsibly and effectively.

The Future of Data Governance

Looking to the future, Data Governance was singled out as the main focus for respondents for the coming year, overshadowing Big Data/Data Lakes, which was the most popular response in 2021. This highlights the growing recognition of the importance of data governance in managing the ever-increasing complexity and volume of data.

As data continues to grow both in volume and complexity, jobs in data governance management will become more widespread and is poised to evolve. It will play an increasingly crucial role in emerging fields such as artificial intelligence and machine learning, where the quality and reliability of data are paramount.

Data Governance has journeyed from the side lines to centre stage. In this increasingly data centric world, its rise to prominence is a testament to the changing dynamics of data management and the increasing recognition of data as a crucial asset.