What is Data Governance?
The Data Governance Institute (DGI) defines data governance as a framework that provides rules, processes, and procedures around the data collected and stored within your business. This framework must be practical and actionable and must be followed consistently across the organization.
An organization needs to plan for how they will use data to support business outcomes.
The data governance framework determines how data within the firm is managed, used, obtained, and secured. A thorough data governance strategy allows a business to trust that their AI and machine learning models have data integrity. If consistent data science practices are followed, the organization can ensure best practices are being implemented, and that results are in line with the firm’s goals. Data governance is also a valuable tool to comply with data privacy regulations.
Data governance is also one of the four critical principles of AI ethics. The four fundamental principals are:
- Ethical purpose
- Fairness
- Disclosure
- Governance
The governance principle is in place to apply standards of risk management to your machine learning models and to encourage firms to understand the outcomes of their machine learning models.
Why is Data Governance Necessary?
Data governance allows firms to resolve data inconsistencies across different systems and ensure that the information being relied on to make strategic decisions is reliable. For instance, a practical data governance framework would prevent customer names from being listed differently in sales and customer service systems.
A data governance framework provides assurances that your machine learning models are accurate and that the data used to train them is reliable. It also allows organizations to explain relevant findings to outsiders as well as interpret how the model arrived at its results.
The data governance process also ensures businesses comply with applicable regulatory requirements, such as those imposed by the EU’s Global Data Protection Regulation (GDPR).
Who Can Benefit from Data Governance?
It doesn’t matter if you only have BI analysts, IT leaders, or executives wanting to leverage data governance or if you have a team of in-house data scientists looking to be more impactful with their analytic output. Any organization looking to start or advance their AI journey can benefit from data governance.
Data Governance and LogicPlum
At LogicPlum, we know that having trust in your data and the decisions driven by machine learning models are essential. This is why we offer a data preparation solution that provides a full history of actions, along with explanations, so that your business can be in complete control.
Our data models are some of the most sophisticated in the industry, and this will allow your firm to maximize its ability to analyze data and discover new business opportunities.
