The volume and complexity of data that businesses have to deal with on a day to day basis is growing exponentially; a growth supported by the increased output of digital data. This may be welcome news for those of us who are attuned to the intrinsic value digital data can deliver to our marketing and communications efforts, but there are also serious issues businesses must be aware of when using this relatively new yet extremely rich vein of information. Data governance must be a primary consideration.

Above: Richard Greenhalgh, EHS Brann Discovery

In short, a comprehensive approach to data governance is needed in order to safeguard both businesses and their customers whenever data is involved. And whilst in the past data governance has been relevant, the digitised landscape and the ability of the web and other applications to generate highly accurate personal and behavioural data, has created even greater pressure on organisations to put in place clear governance strategies. Self regulation is also a powerful defence for businesses to collectively avoid potentially stringent and stifling government legislation which may manifest, in part in response to the continuous and often blatant misuse of data we’re seeing almost daily.

It doesn’t help when consumers and the media are today infinitely savvier to these breaches of data protection, security and privacy, so it’s clear that the issue of governance must be addressed immediately. Indeed, Google’s latest enhancement to its ‘Google World’ product, Streetview, has demonstrated the speed at which the general public and media can oppose supposed privacy breaches. Whilst here the discussion isn’t focused on the use of individual level data (such as is the case in the ongoing debate regarding behavioural targeting) the same principle –– how the misuse of data can have a negative effect on individuals - remains relevant.

For many businesses, the hurdle of creating and implementing a bullet-proof governance strategy was already difficult before we entered the digital age. One common issue has always been that for data governance to be totally effective and all encompassing it needs to be created for and implemented across the entire company; not just in the marketing or IT department. Indeed, examples of where this task has been handed to the marketing or IT department highlights the issue that a blinkered, marketing specific view of what governance needs to monitor and manage emerges, subsequently making it more difficult for a joined up strategy to be implemented company wide. In effect, data governance needs to be a board level issue, so it can truly influence every area of a business.

Of course, the struggle is made more difficult because of the historical view many board directors have of customer data; yes it’s useful, but it should be kept in the marketing department where it belongs. This view is commonplace, even now, when the evidence that customer data can be the lifeblood of good marketing is clear.

However, the presence and proliferation of the Internet and digital channels and the huge streams of behavioural and transactional data these give us access to is actually helping data to become a much more ‘company-friendly’ resource. It also means that the need for strong, simple data governance in businesses using digital channels to talk to their customers is greater than ever.

However, this new attitude is not always forthcoming, and there are still too few board level directors who are fluent in the language of data, or who give it serious consideration as part of board level decision-making. What many do not realise, however, is that good data governance need not be onerous. Yes, effort is needed to establish the protocols, training and processes needed to manage the data governance strategy, but once established the role of the board is more about ensuring compliance in a supervisory capacity rather than all having to become data experts overnight. Many are even trying to run before they can walk; embracing digital insight without considering the application of offline information they have access to and already hold and without realising that a good data governance strategy can address data needs across all channels, on- and offline.

So for governance to work it needs to be company wide, board inspired, and involve a clear and confident approach involving people, process and technology. Above all it needs to be driven by skilled and experienced people; people who have a real and tangible understanding of the benefits of success and consequences of failure. The rapidity with which data is generated and equally how this data is being used (and abused) in the digital sphere, means whatever solution is identified will need to cater for the specific challenges this presents.

So am I suggesting any investigation and expression of data governance is simply a waste of time? Not so. In fact, tackling the issue now gives us the opportunity to meet its requirement head on, whilst at the same time effecting positive change across these organisations.

The message to the board is clear – data governance must be dealt with efficiently and effectively; the consequences of getting this wrong are numerous and serious, and wield the potential to irreparably damage your business. And if it takes the glitz and glamour of digital marketing, and the exciting opportunities this can deliver to highlight governance as a serious and necessary discussion, then so be it.

From a purely practical point of view I guess the final argument against anything less than a dedicated view of data governance is that now, during a recession; precious budget should be directed at front end marketing activity that can actually generate sales. But I’d argue that if the underlying principles of data governance are correct, the impact on the way data is used and in turn its monetary benefit to the brand in question will vastly outweigh the cost implications. Not investing a little time, money and effort in putting data governance at the heart of a business right now is false economy.