The Evolution of Data Governance
Since its early years, when it was perceived as unneeded and complicated, data governance has advanced greatly. It has become an essential part of every industry over time, solidifying its position as a crucial ally. In this DataQG Article, we’ll examine the development of data governance and its evolution and highlight the expanding significance it enjoys in the modern world.
In the early 2000s, Data Governance was a mysterious and intimidating concept that loomed over businesses and individuals alike. People were frightened by it, as they didn’t fully understand its purpose or benefits, leading to a general fear and misunderstanding surrounding the topic. The dark cloud around data governance essentially created a low adoption rate among organizations.
By 2010, Data Governance had matured and gained recognition in the financial sector. It became an essential tool for banks and investment companies to manage their data and ensure regulatory compliance. This shift in perception showcased the growing acceptance and importance of Data Governance within the finance industry but was still primarily focused solely on compliance as opposed to operations and analytics.
By 2010, Data Governance had matured and gained recognition in the financial sector. It became an essential tool for banks and investment companies to manage their data and ensure regulatory compliance. This shift in perception showcased the growing acceptance and importance of Data Governance within the finance industry but was still primarily focused solely on compliance as opposed to operations and analytics.
Data Governance increased its influence in the insurance and healthcare industries in 2015. Data privacy and protection became increasingly important as medical records and other sensitive patient data were converted to digital form and HIPPA compliance was driving many of these programs. Working with experts in healthcare and insurance during this time, data governance was essential in ensuring that private data in these sectors was protected.
In 2022, an incredible $9.4 billion of venture funds (Pitchbook) were injected into software and services in the data governance, privacy, and quality sectors. As businesses looked to leverage the value of their data while preserving privacy and regulatory compliance, this investment surge showed the growing realization of the necessity of data management. These massive investments propelled the technology side of data governance forward, but the industry still lacked proper education and training in these areas. As Data Governance is considered a people-first function, organizations adopt techniques and best practices from
Today, in 2023, Data Governance is no longer a mysterious or intimidating concept. It has become an essential aspect of almost every industry such as CPG, retail, entertainment, travel, and education. With the boom of privacy concerns, AI, and enterprise analytics, data governance is becoming an increasingly crucial aspect of business operations, ensuring data quality, compliance, and security while maximizing its potential for informed decision-making and strategic growth. The journey of Data Governance through the years has been remarkable. From being a misunderstood and feared concept to becoming an indispensable ally for industries worldwide, it has truly evolved. As data continues to grow in importance, it is vital that we all understand and embrace the role of Data Governance in our lives.