How can data governance improve ERP performance?

1 Benefits of data governance

Data governance can enhance ERP performance in several ways. First, it can ensure data accuracy, completeness, and consistency across the ERP system, reducing errors and rework. Second, it can improve data security and compliance, by setting access rights, encryption, and audit trails for sensitive data. Third, it can enable data integration and analysis, by facilitating data sharing and collaboration across different sources and platforms. Fourth, it can support data innovation and value creation, by enabling data-driven decision making and business intelligence.

2 Data governance framework

To implement data governance effectively, businesses need a clear and comprehensive framework that covers the following aspects. First, they need a data governance strategy that aligns with their business goals, vision, and values. Second, they need a data governance structure that defines the roles and responsibilities of data owners, stewards, users, and custodians. Third, they need a data governance process that outlines the steps and tools for data creation, collection, storage, transformation, distribution, and disposal. Fourth, they need a data governance culture that fosters data awareness, literacy, and quality among all stakeholders.

3 Data governance best practices

To ensure data governance success, businesses should follow some best practices. First, they should assess their current data situation and identify their data needs, gaps, and risks. Second, they should establish clear and measurable data quality metrics and indicators, and monitor and report them regularly. Third, they should adopt data governance standards and frameworks that are widely recognized and accepted, such as DAMA-DMBOK or ISO 8000. Fourth, they should leverage data governance software and tools that can automate and simplify data governance tasks, such as data profiling, cleansing, mapping, cataloging, and lineage.

4 Data governance challenges

Data governance is not without challenges. Some of the common obstacles that businesses face are: lack of data governance leadership and sponsorship, resistance to data governance change and adoption, insufficient data governance resources and skills, complexity and diversity of data sources and systems, and evolving data governance regulations and requirements. To overcome these challenges, businesses should: secure top management support and buy-in for data governance, communicate the benefits and value of data governance to all stakeholders, allocate adequate budget and staff for data governance, harmonize and standardize data formats and definitions across the ERP system, and stay updated and compliant with data governance laws and rules.

5 Data governance examples

Data governance can improve ERP performance in various industries and domains. For example, in manufacturing, data governance can help optimize production planning and scheduling, inventory management, quality control, and supply chain management. In healthcare, data governance can help improve patient care and safety, clinical research and development, billing and reimbursement, and regulatory compliance. In retail, data governance can help enhance customer experience and loyalty, product assortment and pricing, marketing and sales, and logistics and delivery.

6 Data governance tips

Data governance is not a one-time project, but a continuous and iterative process. To maintain and improve data governance and ERP performance, businesses should: review and update their data governance strategy, structure, process, and culture regularly, solicit and incorporate feedback and suggestions from data users and consumers, identify and resolve data issues and conflicts promptly, train and educate data staff and users on data governance best practices and standards, and celebrate and reward data governance achievements and improvements.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?