Buy-side firms can harness data governance frameworks to make better-informed decisions, instead of just confining it to legal compliance and IT.
Previously, companies largely used these information policies and procedures to keep up with the existing regulatory framework, technology reporter and blogger Loraine Lawson wrote in IT Business Edge. However, this trend is changing, as businesses are putting data governance in the hands of people in a wide range of departments. These organizations now view data as a crucial asset, according to a report released by a global research and advisory firm.
“As organizations begin to exploit the value of data for strategy and operations, they recognize that data governance has to be about helping the business realize the value potential in data,” the report stated. “As such, stakeholders in marketing, sales, customer service, and finance are becoming much more involved and accountable.”
One way that buy-side firms can use data governance to improve decision-making is using these frameworks to generate the highest possible standards for data quality. Having information that is accurate and free of errors will make it easier for employees and managers in various departments to make use of their important information.
Placing an emphasis on high-quality data could generate benefits in many different areas. For example, buy-side firms rely on having accurate information so they can effectively manage assets and meet their investment objectives. Data integrity is also important when these institutions want to evaluate their performance against different benchmarks.
Sales and marketing is another area where buy-side firms can potentially generate stronger results by having high-quality information. With accurate marketing data, these companies can cater to their target audience more effectively. The same is true for sales efforts, as institutions can increase their odds of closing deals if they have better information on their prospect.
Enhancing data governance
Buy-side firms that are serious about improving their data governance so it can provide the greatest possible benefit to their business should keep a few key points in mind. First of all, if they want to succeed in bolstering their data governance, they need to achieve universal buy-in.
Employees who are advocating having the right policies and procedures for their important information will need to get senior management on-board. Middle management will need to buy in as well. Last but not least, everyday employees will need to be behind such initiatives. Otherwise, there will be nobody to implement them.
After obtaining this crucial buy-in, buy-side firms can benefit from assessing where their information policies and procedures stand currently. Undergoing a thorough analysis can help them find weak points and bottlenecks. Armed with this information, institutions can save time and energy in their efforts to bolster existing data governance frameworks. Institutions that want to be thorough about this analysis might consider working with a professional services provider.