Lest anyone question its importance, digital marketing leader Michael Shufeldt presents a list of useful factors for determining how information governance can produce remarkable ROI for a client or host company. According to Shufeldt, successful IT governance can be summarized as a cross-functional effort involving legal, record keeping, and executive business functions. In total, the goal of IT governance is multifold, from ensuring compliance with regulations and mitigating risks, to protecting privacy and ensuring security of data. As Shufeldt states:
Many organizations agree that lack of active governance is a big problem, but few have a viable solution. In particular, it can be difficult to get buy-in and obtain funding for a non-revenue-generating initiative. However, information governance is a necessary process for any business that is required to keep both physical and digital records.
5 Impacts of Information Governance
The following list pinpoints five positive impacts of information governance and is followed by a brief description of those impacts:
- Increased Value of Information
- Cost Reduction
- Risk Mitigation
- Data Quality & Increased Efficiencies
- Increased Visibility
(1) Overall, more visibility is created for organizational information, making that information significantly more valuable. (2) Information governance achieves the same net effect of revenue generation, but it does so through cost savings. Studies show that 40% of corporate data is ROT (redundant, obsolete, trivial), and ROT reduction is the primary source of these savings. (3) Because data is becoming more heavily regulated and more extensively litigated, the need for risk mitigation is growing, thus strengthening the case for information governance. (4) IT governance also addresses issues of poor data quality caused by ROT, lack of structure, and lack of visibility that can cause significant loss of operating revenue – up to 35 percent. (5) IT governance can ensure that users are given the most relevant data, and that benefits to business intelligence tools are accrued.
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