Data Governance: Just Because You Can, Doesn’t Mean You Should
Businesses of all sizes across all industries are rapidly adopting digital transformation models that put data at the center of driving the business forward—as they should. However, putting data at the center of everything the business does can be risky without proper planning and rigorous management. Many companies have been wise to introduce data governance programs to protect corporate data assets and establish a framework for operational excellence when it comes to data management and use. Data governance emphasizes the enforcement of defined standards or policies and provides mechanisms for consistency and repeatable processes, but it is not enough to protect businesses in today’s world of data.
Traditional data governance models are built on business needs, such as increasing ROI and productivity, or reducing cost, complexity, risk, and liability. This has served businesses well internally, but the shift to becoming data-driven demands they also address external data needs and concerns. And while many will assume this means protecting consumer data and personally identifiable information (PII) (which it does), the issues are far greater than this. Rapidly advancing data capabilities have given businesses the ability to do more than ever before. Businesses can use data to inform the development of new products and services and potentially even new business models. But, just because you can, doesn’t mean you should!
The impact of data use by businesses and government organizations on individuals, communities, and the environment is under constant scrutiny around the world. We are starting to see this formalized with security and privacy regulations such as the EU’s General Data Protection Regulation (GDPR) and the Privacy by Design approach for data systems. But even adhering to legal requirements and compliance regulations will not be enough to protect the business when it comes to ethical data use. Why? Ethical concerns precede legal and compliance requirements. And the stakes are large. Brand reputation is at risk. One wrong move could cause a significant loss, if not the whole business to fail.
Businesses do not have a framework for addressing ethical data use because ethics are not based on business needs. Ethics are based on human values, morals, and behaviors. Ethical decisions cannot be based on business values, mission statements, or business goals and objectives. They must be based on the ever-evolving value constructs of the individuals and communities businesses serve. This makes “ethical data use” quite the conundrum. But with the right additions to a data governance program, ethical data use can be appropriately and effectively addressed.
