Business Intelligence Governance: Know 5 Best Practices of Bi Governance
Information is power for businesses. Access to the right information can help companies steer their decisions in the right direction. However, in the digital era, businesses can access several data sets from multiple sources. This makes it challenging for businesses to discern relevant information.
Companies need an effective mechanism to collect all data, categorize it, and process it into useful insights at scale. This process, known as business intelligence (BI) governance, plays an important role in businesses across all sectors.
Data yielded through this process can help businesses make strategic decisions. For instance, data governance in the healthcare industry can result in superior patient care, reduced costs, and better risk management.
Let’s understand the key pillars and benefits of BI Governance on business growth.
Table Of Contents:
- What Is Business Intelligence Governance?
- What are the Top Five BI Governance Practices?
- What are the 5 Benefits of BI Governance Practices?
- The Conclusion
What Is Business Intelligence Governance?
BI governance is a strategy that enables companies to effectively collect and analyze data comprehensively, categorize and store data securely, and leverage it to power data-driven business decisions.
Effective data governance demands that businesses implement systematic processes to streamline and automate the entire data workflow end-to-end, making it sustainable, accurate, and scalable.
BI implementation is a growing function across several sectors, such as finance, transportation, healthcare, and education, with tangible benefits such as enhanced business performance.
What are the Top Five BI Governance Practices?
Here are some guidelines to help businesses follow the best governance practices:
1. Define Business Intelligence Data Goals
For BI strategy to be effective, the process must yield specific value for businesses. Hence, businesses must start on the drawing board with key business goals that need data intelligence support.
For instance, lending businesses may want to identify new demographics of borrowers to funnel their cashflow lending revenue stream. Having specific goals makes the process meaningful for the business and increases business intelligence ROI.
2. Leverage the Right Technology
The sheer volumes of data generated within the business ecosystem are nudging companies to invest early in the right technology to make governance an accurate, manageable function. Businesses are shifting from legacy content management systems to cloud-based, AI-driven BI governance tools, which automate the entire process end-to-end.
The four pillars of superior BI governance tools include:
- Enhancing data quality
- Ensuring data security
- Creating ease of access to data and seamless sharing capabilities
- Effective management of the data lifecycle
The platform must also be extremely user-friendly, as it may be used by those without a tech or data science background.
3. Training for All Stakeholders
Access to technology is as good as the ability of users to leverage it effectively. Many professionals use business intelligence without professional data science experience or exposure.
For instance, a mix of sales, finance, and health professionals may be end-users of BI governance tools. Ongoing training of end users in BI governance processes and strategies and usability of tools is key to the effective usage of business intelligence.
4. Prioritize Data Security
Businesses invest immense efforts in deriving effective business intelligence through BI governance processes. The efforts will be defeated without implementing the best practices in ensuring data security.
For instance, only those with authorized access must be able to view, share, and engage with data. Clear guidelines and protocols must be established to ensure there are no data breaches.
5. Ensure Compliance with All Regulatory Guidelines
Businesses must be compliant with data-related regulatory guidelines that govern their industry. All BI governance activity must adhere to legal and data privacy standards. For instance, companies must avoid intruding into private consumer data or selling or using data without the consent of a stakeholder. Lack of compliance can lead to investigations, penalties, loss of reputation, and, at worst, shutdown of the business.
Also Read: 10 Benefits of Data Governance for Healthcare Companies
What are the 5 Benefits of BI Governance Practices?
Here is a snapshot of the transformative impact of effective data strategy and governance:
1. Superior Quality of Data
One of the top benefits is access to high-quality data. Rather than grappling with huge volumes of data, businesses can focus on data that has been assimilated and processed accurately. The scope for errors, duplication, and data leakages is reduced.
A survey revealed that poor data quality costs businesses an average of $ 12.9 million annually. Meanwhile, superior quality data results in cost savings for businesses.
2. Improved Business Performance
According to a survey, 94% of business leaders shared that they are increasing investments in data initiatives for their organizations in 2023, with 45% sharing that revenue growth was a top priority. Access to high-quality business intelligence paves the way for businesses to achieve their goals faster and increase ROI.
3. Enhanced Operational Efficiency
Access to high-quality data helps businesses avoid operating in a vacuum. For instance, business intelligence may inform businesses that maximum profitability comes from specific clients. Businesses can make informed decisions about where to invest their efforts and streamline operations rather than spreading themselves too thin in multiple directions.
4. Enhanced Data Protection
Businesses are constantly at the risk of internal and external data breaches. An effective, well-defined data governance strategy ensures data is categorized and stored securely. Sensitive data will not be compromised, putting the business and its stakeholders at risk.
5. Data-Driven Decision-Making
Businesses can make informed decisions on how to drive revenues and profitability best. They can shape their decisions based on real-time data instead of the instincts and hunches of one or a few team members.
Also Read: How Business Analysis Consulting Services are Changing the Game
The Conclusion
Businesses that invest early in streamlining data via business intelligence governance can gain a competitive edge in a market where data is gaining more currency.
Businesses can partner with a cutting-edge technology specialist who provides innovative tech-enabled solutions backed by deep experience in how big data can transform business performance.
If your business wants to drive higher ROI from data intelligence, then Hurix Digital is geared to support you in meeting your growing needs.
Get in touch with us to start a conversation.
Gokulnath B is the Associate Vice President – Editorial Services. He is PMP, CSM, and CPACC certified and has 20+ years of experience in Project Management, Delivery Management, and managing the Offshore Development Centre (ODC).