Data strategy with SAP – Data Governance

Data governance is a critical element of every company’s data strategy. In the context of SAP technology, data governance encompasses a range of solutions that support the validation, creation, use and control of data and analytics. This article takes a closer look at the topic.

Defining data governance

Data governance is the specification of decision rights and an accountability framework to ensure appropriate behaviour in the valuation, creation, use and control of data and analytics. This is the definition provided by Gartner. Although data governance is not about the data and analytics themselves, it typically becomes particularly relevant precisely in these areas. If your data strategy does not include data governance, you do not have a data strategy.

Data governance tools

In the field of data governance, we typically find the following types of solutions:

• Data quality management - e.g. SAP Information Steward

• Master data management - e.g. SAP Master Data Governance, or a master data layer independent of the ERP; we compare both approaches on our Master Data Management page

• Metadata management - e.g. the data catalogue in SAP Datasphere or SAP Data Intelligence, but also technical solutions such as SAP PowerDesigner

• Business glossary management - often bundled with data catalogue management solutions, but in the SAP context a good example is also bluetelligence Enterprise Glossary

• Data catalogue management - see metadata management and business glossary management

• Data lineage management - e.g. Manta, though it can also be found within data catalogue management solutions. Closely related to data lineage management is impact analysis.

The motivation for data governance

Many companies recognise that data governance is important. Typically, they have experienced situations that demonstrated the relevance of one or more of the solution categories listed above. Examples include security breaches, poor decisions based on low-quality data, lengthy data and analytics project development due to a lack of data transparency, protracted discussions about the precise meaning of a KPI, or the creation of identically-named KPI values with different definitions. And if you frequently find yourself asking “Who is responsible for… requirements, implementation, data assets, data protection, data quality, KPI definitions” - then data governance is for you!

Why data governance matters

Here are a few additional reasons why data governance is important:

• If regulatory compliance matters a great deal to you, you should already have a solid data governance strategy in place.

• Decentralisation and the growing autonomy of functional areas and business units further drive the need for federated governance.

• Do you want to promote self-service BI, data literacy and data democratisation? Without a solid data governance strategy and strong data-handling principles across your organisation, this quickly leads to chaos, high costs and poor decisions.

Why many companies do not address data governance

There are several reasons why data governance can be somewhat complicated:

• There may be no clear initial value case - who pays for the project (data governance should not be treated as a one-off project) if the direct value cannot be seen? Most companies only start after something happens that has a significant impact on the business (e.g. legal, financial or reputational consequences, or disruption to core business operations).

• It is led solely by IT or is tool-oriented (“let’s buy XYZ for data quality” or “a data catalogue, so we can be a data-driven company”) - business engagement is essential, and many IT-led initiatives die out very quickly if a common denominator cannot be found.

• It is led solely by the business - business departments often start from their own perspective but frequently lack a holistic view and are not aware of what can be achieved with today’s technology.

• You want everything, and you want it now - trying to boil the ocean kills many initiatives. You may be motivated to do the right things, but if you try to do too much too quickly, your organisation cannot keep pace, and it typically becomes too costly.

Recommendations from our experience

• Think big, start small - identify the data domains that matter most to your business (often customer or product) and start there. Learn as you go.

• Recognise the need for change and bring people along - you will need new roles, new processes, the right tools and the right collaboration model between IT and the business.

• Identify the right use cases and the value behind them - start with the most valuable ones and build lighthouse projects.

• Find your beneficiaries - if you have to convince everyone, you will need an eternity to introduce data governance. On the other hand, trying to govern everyone typically is not the path to success either, and leads to low acceptance and resistance.

Summary

A great deal can be said about data governance. It is worth thinking about if you want to create value from data. Doing the right things in the right way matters. What has been your experience with data governance? Do you pay attention to it?

Remember that effective data governance is key to success in today’s data-driven world. Without it, even the most advanced technologies and strategies may prove insufficient. That is why it is worth investing time and resources in developing a solid data governance strategy that supports your business objectives.

At SNOK, we understand how critical effective data governance is to the success of your company. Thanks to our deep expertise in SAP technology, including SAP BTP, we are able to provide you with the tools and strategies to make the most of your data.

Our services include:

• Implementation and configuration of SAP data governance tools, such as SAP Information Steward, SAP Master Data Governance, SAP Data Intelligence and others.

• Advisory services on data governance strategy, helping you identify the key data domains within your company and develop effective strategies for managing them.

• Support in the digital transformation process, helping you understand how new technologies and strategies can affect your data governance.

• Ensuring data security, helping you understand and manage data-related risk, including regulatory compliance and data protection.

At SNOK, we are convinced that effective data governance is key to success in today’s data-driven world. Without a solid data governance strategy, even the most advanced technologies may prove insufficient. That is why we are here to help you build and implement a data governance strategy that supports your business objectives. Contact us to learn more.

Based on: https://blogs.sap.com/2023/06/03/data-strategy-with-sap-data-governance/