The transformative power of data ownership in modern businesses
Nathi Dube, Director, PBT Innovation at PBT Group
As we all know, data is fundamental to the success of any organisation. It drives decision-making, innovation, and growth. However, the journey from raw data to actionable insights hinges on one critical factor: data ownership. If there are no clear data ownership structures in place, businesses risk losing control of their most valuable asset, resulting in inefficiencies, inaccuracies, and missed opportunities.
Why data ownership matters
Data ownership refers to assigning responsibility and authority over specific datasets within a company. It ensures that data is managed effectively, securely, and in compliance with regulatory standards. Furthermore, it promotes collaboration across departments, enabling the integration of data into business strategies. On the flip side, the absence of data ownership can lead to fragmented systems, poor data quality, and a lack of trust in the insights derived.
When data ownership is clearly established, organisations unlock several benefits:
1. Enhanced collaboration and clarity
Data ownership bridges the gap between data owners and source owners. Traditionally, these groups operate in silos, leading to disconnects. Early involvement of data owners ensures that their requirements are incorporated from the outset of strategic development. For instance, when it comes to software development, this can reduce costly rework and delays.
This collaborative approach also helps data owners understand system limitations, enabling teams to tackle challenges collectively and streamline solution development.
2. Improved data quality and trust
High-quality data is the cornerstone of effective decision-making and innovation. Data owners play a crucial role in validating data outputs during development, ensuring that any anomalies are addressed as quickly as possible. This proactive involvement not only enhances data quality but also bolsters trust among stakeholders.
At a time when artificial intelligence (AI) is reshaping industries, accurate data is non-negotiable. Data ownership ensures that AI models are built on a solid foundation, improving their accuracy and effectiveness.
3. Resource optimisation
Data ownership drives the efficient use of both technological and human resources. By aligning data management efforts with specific business use cases, organisations can avoid overburdening storage and processing systems with unnecessary data.
In cloud environments, where costs are often tied to storage and usage, this focused approach ensures long-term viability. Additionally, it frees IT teams to concentrate on enabling business objectives rather than firefighting data-related issues.
Steps to implement effective data ownership
While the benefits of data ownership are clear, implementing it requires a structured approach. Here are three key steps to get started:
1. Adopt a domain-driven framework
Organisations are naturally divided into business areas such as Finance, Operations, or Customer Service. Each of these must take ownership of the data it generates. Data specialists, like business analysts, modellers, and architects can then support their needs. This empowers business divisions to drive data requirements and ensures more effective integration into their processes.
2. Integrate data requirements into feature development
Incorporating data requirements at the feature development stage is crucial. Just as solution architects design technical frameworks, data architects must define how data will be structured, integrated, and tested. This ensures that data aligns with business objectives and reduces errors during deployment.
3. Extend product ownership to data products
A product ownership model should incorporate data products as well. Each dataset or database view must be linked to a business domain and product owner who takes responsibility for its quality, accuracy, and relevance. This shift allows IT teams to focus on infrastructure, while business teams drive data-related decisions and investments.
Gaining a competitive advantage
As organisations across the world strive to become more data-driven, investing in technology alone is not enough. The key lies in structured and effective data ownership. By embedding data ownership into their operational frameworks, organisations can foster innovation, improve efficiency, and achieve greater alignment between data and business objectives.
