Data Strategy 101: Difference between Data Strategy and Data Governance

Understanding the Differences and their Relationship

In this blog post, we will be learning the difference between Data Strategy and Data Governance and how they are related to each other.

The Difference

Data Strategy is the overarching plan that defines how an organisation will use data to achieve its business objectives. It outlines the vision, goals, and roadmap for how data will be collected, managed, analysed, and utilised to drive decision-making and business growth. A well-defined data strategy includes key components such as data architecture, technology stack, analytics, data integration, and the identification of business use cases for data. It addresses questions like:

What data do we need?
How will we collect and store data?
How can data be used to improve business processes and outcomes?
What technologies and tools should be employed to maximise data value?

Data Governance on the other hand, is a subset of the data strategy that focuses on the management, quality, privacy, security, and compliance of data within an organisation. It establishes the policies, standards, roles, and responsibilities to ensure that data is accurate, consistent, and used appropriately. Key aspects of data governance include:

Data quality management
Data security and privacy protocols
Data lifecycle management
Compliance with regulatory requirements
Defining data ownership and stewardship

Data governance ensures that data is reliable and accessible while protecting the organisation from risks associated with poor data handling, such as data breaches or regulatory non-compliance.

The Relationship

While data strategy and data governance serve different purposes, they are closely related and interdependent. A data strategy sets the direction and goals for how data will be used, while data governance provides the framework and controls to ensure that data is managed properly in line with the strategy.

What comes first?

Data Strategy First: The data strategy typically comes first as it defines the broader objectives and vision for how data will support the organisation’s goals. It lays the foundation by determining what data is needed and how it will be used to generate business value.

Data Governance Follows: Once the data strategy is in place, data governance is implemented to ensure that the data is handled correctly, securely, and efficiently. Governance ensures that the data strategy is executed in a controlled and compliant manner, maintaining the integrity and trustworthiness of the data.

In Summary

Data Strategy is about the "what" and "why" of using data – it sets the direction.
Data Governance is about the "how" – it ensures the data is managed correctly.

Together, they create a comprehensive approach to managing data as a strategic asset, ensuring that data-driven initiatives are successful, secure, and aligned with business objectives. Data strategy defines the path, and data governance ensures the journey is well-managed and compliant.

Where to Start?

If you're ready to unlock the full potential of your business through a tailored data strategy, our expert data consultants are here to guide you every step of the way. Contact us today to embark on your journey towards data-driven excellence.