The information economy is in full swing right now. More than ever, businesses can now leverage data and analytics to improve their operations. Although there are countless applications for data analysis, managing, integrating, and cleansing data to make it useful for decision-making remains difficult.
The ability to detect weak signals, analyze behaviour, combat fraud, and create new services depends on having the most up-to-date data accessible. The main goal of the Data Governance Act (DGA), which was recently authorized by the European Council, according to Frédéric Fourquet, data intelligence product marketing manager at MEGA International, is to coordinate data exchanges for increased performance and innovation for businesses.
How to Create a Data-Driven Culture
The Data Governance Act is a European regulation on data governance that aims to transform the practices of private and public organizations. This act seeks to organize and control the future data-sharing market through the core concepts of security, compliance, sovereignty, and ethics. Global data interchange has evolved into a “Wild West,” and the European Commission wants to turn it into a cornerstone of the economy.
This new legal framework’s four major goals are to support the reuse of public sector data, develop a new financial model for data intermediation, promote this area’s altruism, and establish a committee encouraging data innovation.
The Data Governance went into effect on June 23, 2022, and will be in effect starting in September 2023 after a 15-month grace period. Several European nations and businesses are already leading this change. The majority of public and private participants will need to get ready early to take advantage of this chance.
With the GDPR, Europe was a leader in data privacy. This law served as a model for similar laws passed worldwide, including the California Consumer Privacy Act (CCPA) and Brazil’s LGPD. We may infer that the Data Governance Act, which concentrates and perfects all the greatest ethical data-sharing methods, may have a similar effect in the years to come outside of Europe.
Trusted Data Environment: Not only data integration but data integrity
Based on creating a detailed framework for data sharing, the Data Governance Act establishes a particularly positive incentive environment (Data Exchange). Both on the data supply side and to control and monitoring the reuse of new data transferred, it establishes new responsibilities.
Registered data intermediaries have been given a new accreditation for data exchange services. A registered data intermediary safeguards data flow under stringent technical and ethical requirements. This strategy guarantees openness and confidence among all parties, which is essential to ensuring that the European Data Exchange market is reputable and follows high standards for data usage.
Regulate Exchanges to Create Value
Globally, the minimum projected gains from data usage include new goods and services that boost the European market’s GDP by 1% to 2.5%. Before competing overseas, businesses will have an additional opportunity to establish themselves as regional innovation leaders. Companies will have valuable resources to support R&D and data-driven AI thanks to streamlined access and lower purchase costs for external data. Start-ups and mid-sized businesses, who previously could not access or purchase these data resources, will profit from this.
Protection of All Data Types
The Data Governance Act addresses the exchange of both personal and non-personal data. Additionally, it intends to inspire all public or private businesses to promote and establish new exchanges.
These data-related issues haven’t been properly addressed in the past, but if handled morally and securely, they might present new opportunities.
Thus, the General Data Protection Regulation is one of the things that the DGA depends on (GDPR). The same security safeguards that apply to non-personal data, such as anonymization and obtaining the data owner’s consent, also apply to personal data. The new DGA is incentive-based; it allows each party to choose the requirements for effectively reusing their data rather than requiring anybody to make their data available for free or commercially.
Benefits from DGA
Even though institutions can promote and advance Data Exchange, only businesses hold the key to reaping the rewards of this new data legislation. Everyone must structure their data governance and work toward industrializing it. Let’s face it, joining this “data-driven” strategy will need a significant amount of work. Several obstacles must be addressed, including compliance, cybersecurity, identifying opportunities for innovation, and choosing and implementing technical solutions.
A new organization and way of thinking about businesses and their data-sharing methods are part of the DGA. Experience has shown that business line-driven microprojects are the only sources of true innovation. It stays fragmented until one topic pops out and becomes so significant that senior management takes control of it.
Industrialized Data Governance Approach
It is feasible to choose fresh data that aligns with the company’s strategic objectives and monetize this data using an industrialized approach to data governance. A company must answer these questions: What new data do I need? to accomplish this? What are AI-related initiatives active in my company right now? Which data trajectory ought I to specify? Who manages the data governance process and organizes it?
A huge data market is meaningless if businesses cannot identify their data-related areas of innovation, if they do not yet have access to data analysis and processing solutions, and if their data is neither qualified nor utilized.
The next stage is to designate a Chief Data Officer (CDO) if the answers to the questions above have been provided. And one of the first tasks in developing a data governance community is building a data catalogue that will automatically produce a business glossary so that everyone in the data community can speak the same business language.
The CDO will need to determine whether sectors are interested in data monetization and determine the cost of the data sets. This is encouraging because it means that new, safe platforms run by reputable companies will have been developed to enhance data dissemination, its capacity for innovation, and its capacity to support stakeholders in making better, data-driven decisions.
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