Data Management in Companies: Data is No Longer a Byproduct of Processes but an Asset of Organizations

In the age of digitalization and digital transformation, data management, or data governance, enables companies to make higher quality and faster important business decisions based on concrete metrics and data. For companies to become data-driven organizations and make better business decisions, digital transformation must also involve upgrading knowledge, processes, and the use of quality, intuitive tools that will facilitate data understanding. Proper management and use of data changes the nature of business and ensures that companies derive maximum value from all available information.

In this regard, the companies Business Intelligence and Informatica held a conference at the Zagreb BIRD Incubator on the role of data management in digital transformation. Expert Jerome Couzy from Informatica explained in his presentation that you must first trust the data because it is key to business value. Data management is important for maintaining control over data, but also to make it more accessible, Couzy explained.

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Jerome Couzy

photo Josip Regovic/Pixsell

— Data governance tools are not only recommended for large companies but also for smaller businesses that collect certain data and plan to expand their operations. This data management strategy can significantly accelerate their growth as all business decisions are based on concrete information. Many companies already have data, and the next important step is to invest in the digital transformation process, that is, the right tools that will provide value from available data – concluded Couzy.

However, understanding the value of data and how to manage it is not enough. As highlighted at the conference, one of the biggest challenges concerns engaging people at all levels, as well as changing the organization’s perception. Everyone needs to understand that data is no longer considered a byproduct of processes but an asset of the organization that is valued and requires the same oversight as other organizational assets. A key challenge of digital transformation is to have as many people within the company use that data. To achieve this, the first prerequisite is that users, or employees, understand that data.

Four Pillars

That data governance is still in its infancy in most companies in Croatia was emphasized by co-founder and member of the Management Board of Business Intelligence Lidija Karaga. If the regulator does not force the organization, they start managing data more slowly, and the entire process takes longer, Karaga said.

Mario Pehar, Chief Data Officer at UniCredit Bank d.d. Mostar in Bosnia and Herzegovina, concluded that decisions to introduce data governance into companies should come from the business side of operations, not from the regulatory side.

– People need to be business-driven, not regulatory-driven, to introduce data governance into their companies – said Pehar.

He added that successful data management implementation consists of four pillars. Along with data, these are good tools, processes, and, of course, people.

On the other hand, data management is neither cheap nor free, and human and technological resources need to be secured for it, emphasized Nebojša Mitrić, Director of IT at Maistra.

– Companies have huge amounts of data and are afraid to delete it in case they need it in the future. Data then accumulates, and it seems difficult to start managing it – said Mitrić, explaining that tools like machine learning and artificial intelligence facilitate this work.

Data is the New Oil

In Croatian companies, there is still much room for improvement in data management and organizing these processes. In this regard, Business Intelligence plays an important role in helping companies successfully implement data governance into their operations and become truly data-driven (data-driven).

Karaga’s conclusion is that data is, therefore, 'the new oil', and the interlocutors agreed that alongside data, appropriate tools, processes, and human capital are needed. Pehar firmly believes that digital transformation does not exist without data and that data management is a prerequisite for it, while Mitrić added that the implementation of data management should start on time because this process can take a while. Additionally, data governance ensures and protects data, making it much harder for unwanted parties to access it, which is especially important in times of cyber insecurity and hacking attacks.

It is not enough to just have data; it must also be understood. Along with the four pillars of data management – data, people, processes, and tools – there is also a fifth pillar, which is a reliable and expert partner during the implementation and support after the implementation of data management.

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Lidija Karaga

photo Josip Regovic/Pixsell

— In the modern world, business processes are becoming faster, and companies receive large amounts of data daily. When this data is not managed optimally, or when the right strategy for storing and using this information is not chosen, companies find it much harder to progress due to longer working processes, greater data demand, and more required storage space for additional data. Data governance, as a strategy for managing already available data, not only transforms raw data into useful, valuable information that optimizes the company’s operations but also creates a context in which every stakeholder in the business process clearly understands when and how they can use certain information for the desired outcome – concluded Karaga.